Housing Minister Zev Boim (Kadima) has denied reports by the Shas party that he will allow several hundred housing units to be built in the Hareidi religious city of Betar Illit, with the announcement being delayed until American President George W. Bush's departure from the country on Friday. He charged that the rumors involved internal struggles by Hareidi political factions.

Shas sources maintained that the Housing Ministry will allow the previously frozen building plans but will do so on a gradual basis, beginning with unfreezing a few dozen permits in the next several weeks. The American government has pressured Israel to freeze all new construction in Judea and Samaria until a final peace agreement is reached with the Palestinian Authority.