Arutz-7 reports that the Biden administration has informed the Israeli government that the transfer of authority over Jewish settlements in Judea and Samaria to Minister Bezalel Smotrich would be considered an act of annexation, according to a report by Walla correspondent Barak Ravid. Last week, US Assistant Secretary of State Barbara Leaf visited Israel and held discussions with National Security Adviser Tzachi Hanegbi and senior political figures in an effort to prevent a security escalation in the region. Leaf expressed the Biden administration's concerns to Hanegbi, stating that from the American perspective, this move would signify a step towards the annexation of the Israeli-controlled territories in Judea and Samaria by Israel.

As per the coalition agreement, Smotrich is set to receive control over the Civil Administration and COGAT, the bodies responsible for civilian policy in the region. Defense Minister Yoav Gallant opposes the transfer, and Prime Minister Benjamin Netanyahu is trying to resolve the conflict between the two. The US State Department issued a statement saying that "the Biden administration believes it is critical for Israel and the Palestinians to avoid unilateral steps that would increase tensions and hinder efforts to negotiate a two-state solution, such as annexation measures. The application of Israeli civil law in Judea and Samaria is one such measure."

The Prime Minister's office declined to comment on the matter. A senior official in the government responded to Israel National News-Arutz Sheva saying, "It is inconceivable for the US to interfere in the distribution of powers within the Israeli government. After decades of living under military rule, the settlers of Judea and Samaria deserve equal citizenship and proper services. The coalition agreements must be fulfilled, and all party leaders will insist on it."