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By Lesley Wroughton and Patricia Zengerle WASHINGTON (Reuters) - President Barack Obama's administration said on Monday it plans to work with and fund the new Palestinian unity government, and Israel immediately voiced its disappointment with the decision also criticized by some U.S. lawmakers. Palestinian President Mahmoud Abbas swore in a unity government on Monday in a reconciliation deal with Hamas Islamists, who advocate Israel's destruction. The United States views Hamas as a "terrorist" organization and the U.S. Congress has imposed restrictions on funding for the Palestinian Authority, which typically runs at $500 million a year, in the event of a unity government.More...