The decision propelled Israel into a national crisis with massive protests that forced Netanyahu to delay the move on Monday.
"We haven't taken a hands-off approach," said a senior administration official.
Dennis Ross, a veteran U.S. peace negotiator between Israelis and Arabs, said the Biden administration had expressed its misgivings about Israel’s judicial proposals but had done so privately where possible.
Halie Soifer, chief executive officer of the Jewish Democratic Council of America, said the way the Biden administration has handled this crisis thus far is in keeping with Biden's commitment to the U.S.-Israel partnership.
But, keeping a distance from Netanyahu, Biden has yet to invite him to visit the White House since the Israeli began his sixth term as prime minister in December.