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The "nation-state" law, which has been condemned by Arab lawmakers, also asserts Jerusalem as the capital and Hebrew as the official language.

The U.S. ambassador to Israel, David Friedman, praised "the vision, the courage and the moral clarity" of President Trump in making the U.S. the first country to open an embassy in the disputed city.

It's a shift from earlier comments by Trump, who had seemed to give Israel a green light to build more housing for Jewish settlers in areas the Palestinians hope will become part of a future state.

This is the second announcement of construction plans this week. President Trump, who took office on Friday, is widely expected to be more supportive of settlement expansion than his predecessor.

West Bank settlements have expanded under every Israeli government over the past half-century. Nearly 10 percent of Israel's Jewish population now lives on land captured in the 1967 Six-Day War.

In a more than hourlong address, the outgoing secretary of state sharply criticized Israel's expansion into the West Bank, saying it was making the future prospect of peace ever dimmer.

In explaining the U.S. position, Ambassador Samantha Power said the move doesn't diminish U.S. support for Israel.

Bankruptcy lawyer David Friedman is a longtime supporter of Jewish settlements in the Israeli-occupied West Bank and has questioned the need for a Palestinian state.

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