Talks poised to resume this week after announcement of new housing construction in disputed turf.
Could be pre-emptive response to American lawmakers calling for cuts to aid in wake of disputed vote.
With the U.S. facing overcrowding in its prisons, Holder is proposing changes that would scale back the use of harsh sentences for certain drug-related crimes.
U.S. secretary of state's push to deepen relations comes as local furor has erupted over American spying.
Comes just 3 days before U.S.-sponsored talks on two-state solution, angering Palestinians.
Court overturned his 40-year sentence for 1985 kidnapping and murder of a DEA agent.
Agreement has been stalled since June by President Hamid Karzai.
President wanted to focus on immigration reform this summer.
Promised to work with Congress to find "appropriate reforms" for the NSA surveillance regime.
Former U.S. intel analyst who gave Wikileaks huge troves of documents painted as careless villain.