Such action by Israel “continues this pattern of provocative and counterproductive action”, State Department spokesman John Kirby said in a statement on Wednesday.
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The anger of Palestinian residents of Jerusalem has increased in the last three years after the Israeli authorities allowed increasing numbers of Jewish settlers to storm the Al-Aqsa mosque.
Kirby then cited plans for several hundred additional units in other areas, including Ma’ale Adumim, Har Homa, Ramot and Pisgat Ze’ev.
Israel prevented at least nine footballers players from crossing from the West Bank into Gaza to join their team for the opening match of the Palestine Cup on July 26.
The activity raises doubts over Israel’s commitment to a negotiated settlement with the Palestinians.
According to the advocacy group Peace Now, Israeli authorities issued tenders for the construction of 323 housing units in East Jerusalem.
Such moves show how the Israeli occupation exerts its power and control over Palestinians in every aspect of their daily lives.
It later annexed east Jerusalem, which Palestinians view as their future capital.
An online petition to Federation Internationale de Football Association that had collected almost 150,000 signatures by Monday demanded that the worldwide soccer organization apply its bylaws to Israeli soccer clubs operating in the occupied West Bank.
The Palestinians and the entire worldwide community consider the West Bank and Gaza Strip to be parts of the same territory despite not actually being territorially contiguous.
PFA chief Jibril Rajoub said earlier that the second leg of the Palestine Cup finals, initially slated for last Saturday, would be postponed by 48 hours due to Israeli restrictions on the Gazan footballers’ movement.
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In an interview with a Sudanese television station on Sunday, Abbas said the two parties would meet on measures for general elections to select a president and members of parliament and on the establishment of a unity government.
