Jason Greenblatt said he left his position in the Trump administration because of political turbulence in Israel and the financial cost of raising an Orthodox family in the US.
In the reported draft, Jerusalem would remain unified under shared control between a new Palestinian state and Israel.
Given the political deadlock in Israel, it seems unlikely that the document will be presented before a new government is in place – something that could take months.
Greenblatt's resignation could throw the future of the troubled peace initiative – it has already been rejected by the Palestinian Authority – into a swirl of ambiguity.
"...Toughest deal of all," says Trump. Economic plan was presented in Bahrain in June.
Kushner met with King Abdullah II of Jordan on Wednesday to discuss the details of the Mideast peace plan known as the "Deal of the Century," said an administration official, according to Al Arabiya.
"The Palestinians from Israel are "untermensch" or treated as second class citizens," Gerry Downing said.
From Sudan to Kuwait, prominent commentators and ordinary citizens denounced Kushner's proposals in strikingly similar terms: "colossal waste of time," "non-starter," "dead on arrival."