Israel's army said it "neutralized" an assailant who attempted to stab at soldier at a military post in Ofra, north of Ramallah.
In a notice to lawmakers obtained by The Associated Press, the U.S. Agency for International Development said the $10 million would go to support "people-to-people efforts to bring together conflict-affected groups to address divisions that may be rooted in group differences such as ethnicity, religion, status, class, or political affiliation in areas affected by conflict and civil war".
Israeli planes renewed air strikes in Gaza early on Saturday and Hamas fighters responded by firing rockets into Israel as the fighting entered a fifth night and U.S. and Arab diplomats sought an end to the violence.
Palestinian groups, mainly Hamas and Islamic Jihad, have launched more than 1,000 rockets, Israel's army said, including hundreds at Tel Aviv, where air sirens wailed overnight.More news: Cuomo says NY reviewing CDC guidance on masks
Israel has responded with air and artillery strikes on more than 600 targets in the blockaded enclave.
He defended Israel's response, despite accusations from Palestinians, peace activists and many American Democratic politicians that Israel's military response has been disproportionate to that of Gaza.
Palestinians protesting in solidarity with the residents of Sheikh Jarrah have been targeted by Israeli forces.
Police and protesters began with clashes in the streets of East Jerusalem fighting over impending evictions and at the Al-Aqsa Mosque before the rocket attacks commenced.
He said the goal now is to "get to a point where there is a significant reduction in attacks, particularly rocket attacks". The rocket missed the airfield and there are no reports of any casualties or damage, according to Haaretz. He called the effort "a work in progress".
Israel has come under heavy global criticism for civilian casualties during three previous wars in Gaza, which is home to more than two million Palestinians.More news: CDC eases indoor mask requirements for fully vaccinated Americans
An Israeli military spokesperson, Lieutenant Colonel Jonathan Conricus, said the focus of Israel's attack on Gaza was the elaborate system of tunnels that Hamas has built over the years.
Hamas showed no signs of backing down.
In Washington, US president Joe Biden said he spoke with Mr Netanyahu about calming the fighting but also backed the Israeli leader by saying "there has not been a significant over-reaction".
"Nothing justifies the lynching of Arabs by Jews, and nothing justifies the lynching of Jews by Arabs", he said, adding Israel was fighting a battle "on two fronts". The rocket landed in the open desert but briefly disrupted flight traffic at the southern Ramon airport.
The heavy bombardments coincided with the start of Eid al-Fitr, which marks the end of the Muslim holy fasting month of Ramadan, and saw the faithful pray at mosques and amid the rubble of Gaza's collapsed buildings.
"Israeli state violence is, of course, not limited to Jerusalem". Israel regards all of Jerusalem as its capital, while the Palestinians want east Jerusalem, which includes sites sacred to Jews, Christians and Muslims, to be the capital of their future state.More news: Judge postpones trial for three ex-cops in George Floyd case
The latest outburst of violence began in Jerusalem and has spread across the region, with Jewish-Arab clashes and rioting in mixed cities of Israel.