The Obama administration isn't backing down in criticism of an Israeli plan to build 1600 new homes in East Jerusalem. Israel announced the plan just as Vice President Biden was visiting the country.

President Obama's chief political condemned the move Sunday. "This was an afront, it was an insult," David Axelrod told NBC's Tom Brokaw.

Fox News' Bill Kristol responded to Axelrod by defending the Israelis. "No one doubts this is part of Israel. This little apartment building is going to be part of Israel. No different from Palestinians building apartment buildings in Ramallah. It's ludicrous the it became a big issue," said Kristol.