"We will not fund states that allow anarchy," she told reporters.
The federal government remains closed amid a bitter impasse on Capitol Hill over competing congressional spending bills.
President Donald Trump and Republicans have cast blame for the shutdown on Democrats' health care demands, while Democrats insist Republicans need to negotiate.
The Trump administration has threatened mass layoffs of some federal workers during the shutdown.
Israeli Prime Minister Benjamin Netanyahu warned that if Hamas rejects the plan or accepts it and then does "everything to counter it," then "Israel will finish the job by itself.
"This can be done the easy way, or it can be done the hard way, but it will be done," Netanyahu said. "We prefer the easy way, but it has to be done."
Israeli Prime Minister Benajmin Netanyahu said he supports President Donald Trump's plan to end the war in Gaza, saying this is a "critical step" to ending the conflict.
"You've proven time and again what I've said many times -- you are the greatest friend Israel has ever had in the White House," Netanyahu said to Trump during the press conference.
"When our two countries stand shoulder to shoulder, we achieve the impossible," Netanyahu added
Netanyahu said if Hamas agrees to the plan, the "first step" will be a "modest withdrawal" from Gaza and the "release of all our hostages within 72 hours."
Near the end of his remarks, President Donald Trump called on Hamas to accept what he called his "extremely fair" proposal.
"Everybody who wants to see an end to the violence and destruction should be united in calling for Hamas to accept the extremely fair proposal so that we can end the war and get us back our hostages right now and have everlasting peace," he said.
Among the new details in Trump's plan, it requires Hamas to disarm gradually and requires the IDF to gradually withdraw but leaves them in control of the Philadelphi corridor and the established buffer zone. It also leaves a role for the Palestinian Authority -- after reforms -- to take part in running Gaza and leaves the option open for future Israeli-Palestinian negotiations for Palestinian statehood.
President Donald Trump spoke about the teleprompter issue that wasn't working when he spoke during his United Nations visit last week.
"They're introducing me but there's nothing on my teleprompter," Trump said on Monday.
He said since the teleprompter wasn't working, his speech was "better in certain ways" as it was "more of a speech from my heart."
