The US State Department on Monday denied reports that it was considering imposing sanctions against Israel over new construction in East Jerusalem, calling the claims “unfounded and completely without merit.”

“I can set the record straight and be clear that reports that we might be contemplating sanctions against Israel are completely unfounded and without merit,” State Department spokeswoman Jen Psaki said, according to the Blaze.

Last week, Republican congressmen demanded an explanation from the Obama administration regarding the “worrisome” reports of sanction plans.

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The concerns apparently stemmed from a December 4 story in Haaretz that cited an anonymous Israeli official who said that the Obama administration was “examining taking action against the construction in the West Bank and East Jerusalem, rather than making do with issuing denunciatory statements.”

US officials have repeatedly criticized Prime Minister Benjamin Netanyahu’s settlement policies in recent months. On Sunday, for instance, Secretary of State John Kerry said that while the US commitment to Israel’s security remains “ironclad,” and the bilateral security cooperation between the two countries has “never been stronger,” the US believes Israel should take steps to curb settlement activity in the West Bank. “The settlements are undermining prospects for peace and isolating Israel in the international community,” he warned.

JTA contributed to this report.