The US pledged $900 million, but said the money would not go to Hamas.
Israel has plans to demolish Palestinian homes in East Jerusalem to make way for a tourist site. Activists say it's a demographic play that amounts to ethnic cleansing.
The US envoy arrives at a time when Israelis and Palestinians seem most absorbed with fixing their own houses before dealing with their neighbors.
Among the scores of Palestinian prisoners who Hamas wants freed in exchange for Israeli Sgt. Gilad Shalit is Marwan Barghouti, the most popular man in Fatah.
Colleagues ask: If the former Northern Ireland peacemaker can't do it, who can?