Israel continues to mete out punishment to Palestine for its successful bid for recognition at the U.N. on Thursday. Israel has announced that it will withhold $120 million in taxes and tariffs that they collect on behalf of Palestine.

Israel says that it will now withhold the monies that it was going to turn over to the Palestinians and instead use it to pay against what it says the Palestinians owe for electricity and other Israeli debts.

This latest retaliation that took place on Sunday is in addition to Israel’s announcement on Friday that it intends to move ahead with building thousands of homes for settlers on the occupied West Bank.

Israel opposed the Palestinians bid for status as a “non-member observer state” taken up at Thursday’s General Assembly meeting. Palestine was successful in their attempt when the General Assembly overwhelmingly passed that resolution. The vote was 138 for the resolution to nine against. 41 countries abstained from the vote.

Palestinian Authority Chairman Mahmoud Abbas delivered a hard hitting speech to the General Assemby on Thursday, one that was very critical of Israel. He said in the speech, “The moment has arrived for the world to say clearly: Enough of aggression, settlements and occupation.” The speech was met with extensive applause and ended with a standing ovation.

The United States sided with Israel in their opposition, as did Canada, the Czech Republic, Panama, the Marshall Islands, Palau, Nauru, and Micronesia.

Prior to Thursday’s vote, Israel’s Prime Minister Benjamin Netanyahu said that the General Assebly vote “will not change anything on the ground.” Israel’s actions following the U.N. decision seems to punctuate those remarks.