If they keep their financial support and keep vetoing resolutions in international forums, why couldn't Israel keep expanding the illegal settlements? Your argument is incomplete. If Israel fails to change its behavior, the unconditional support the U.S. gives Israel must stop.
Palestinians, IDF clash in Jalazone after funeral of teen killed by IDF on Friday (Haaretz)
from the article: Why U.S. Jews must embrace Kerry's appeal to put pressure on Netanyahu