Every six months since then, four consecutive presidents - Democratic and Republican (including Trump himself) - have signed such waivers.
In a move that comes as the president appears to be delaying a decision on moving the US embassy from Tel Aviv to Jerusalem, officials suggested Trump may instead recognize Jerusalem as Israel's capital in order to demonstrate a commitment to his campaign pledge.
Recognizing Jerusalem as "undivided" would likely dash Palestinian hopes of establishing in East Jerusalem the capital of their hoped-for future state, and could upend the White House's current attempts to revive the stalled peace process.
In the same Monday White House meeting, a further six-month delay to moving the embassy was reportedly debated alongside a move to declare Jerusalem as Israel's capital, The Hill reported.
In the past few days, Vice President Mike Pence said that Trump is "actively considering" how to move the USA embassy to Jerusalem, and senior Israeli officials were quoted as saying that they expect the move to be announced imminently.
The status of Jerusalem is one of the major stumbling blocks in achieving peace between Israel and the Palestinians.
While administration officials will not say what Trump will do, it is expected that he will seek a middle ground - advancing plans for an embassy move in some way but likely not making the change immediately. But as president, he has faced equally forceful lobbying from close US allies such as King Abdullah II of Jordan, who have impressed on him the dangers in abandoning America's carefully balanced position on the holy city.
"No decision on this matter has been made yet", State Department spokesman Heather Nauert said Thursday.
"Last June the president said that it was a question of when the embassy would move, not if", a USA embassy official told ABC News.
The holy city is considered by both Palestinians and Israelis to be their capital city. Jerusalem should indeed be recognized as Israel's capital, but only in the context of a peace agreement between Israel and the Palestinians.
The State Department recently advised American diplomatic posts in predominantly Muslim nations that an announcement about the embassy and Jerusalem's status is possible next week, and advised them to be vigilant about possible protests, officials said.
Citing American officials, the newspaper reported that the plan was not final, but that if legal and policy considerations were resolved, a formal announcement could be made next week.