The United States said Wednesday, November 2, it was "deeply disappointed" that Israel decided to speed up settlement building after UNESCO decided to admit the Palestinians, boosting their statehood drive.

It also signaled opposition to Israel's decision to freeze the transfer of Palestinian tax funds, after the UN Educational, Scientific and Cultural Organization admitted the Palestinians as a full member.

"We are deeply disappointed by yesterday's announcement about accelerated housing construction in Jerusalem and the West Bank," said White House spokesman Jay Carney.

A day after the UNESCO vote, Israel's inner cabinet decided on Tuesday to speed up construction of Jewish settlements in annexed Arab east Jerusalem and elsewhere in the occupied West Bank. It also decided to freeze the transfer of Palestinian tax funds.

U.S. State Department spokeswoman Victoria Nuland echoed the White House's deep disappointment over the decision to speed up settlement building and signaled opposition to the freeze on funds transfers.

"We've also said that we believe that the regular transfer of money, whether it's U.S. money, whether it's (Palestinian) money, is important and should continue to be made," Nuland told reporters.

She said "these are key to strengthening Palestinian institutions and are necessary for funding the future of the state" the Palestinians hope to build.

Nuland said the U.S. ambassador in Tel Aviv, Dan Shapiro, registered his opposition to the steps with the Israeli government.

Palestinians won a crucial vote to enter UNESCO as a full member on Monday, scoring a symbolic victory in their battle for statehood ahead of a similar vote at the UN General Assembly in New York.

The United States is opposed to the Palestinians' drive for statehood at the United Nations, saying they can only achieve their goal by returning to direct peace negotiations with Israel that have been stalled for more than a year.