The million-dollar Genesis prize money had been doubled by an additional contribution in December, and Portman had announced her intention to dedicate the money to programmes advancing women's equality.
Natalie has not gone into specifics about why she decided not to attend, but Israeli government officials are now slamming her for scrapping the visit.
"Let me speak for myself".
"I'm very much against Netanyahu".
The Oscar profitable actress was born in Israel, however left for the U.S. together with her household when she was 4 years outdated.
"After decades of egregious human rights violations against Palestinians, Israel's recent massacre of peaceful protesters in Gaza has made its brand so toxic that even well-known Israeli-American cultural figures, like Natalie Portman, now refuse to blatantly whitewash, or art-wash, Israeli crimes and apartheid policies", it said in a statement.
"I call on Interior Minister Aryeh Deri (Shas) to rescind Portman's Israeli citizenship".
"I was sorry to hear that Natalie Portman fell like a ripe fruit into the hands of supporters of the BDS", Regev said.
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"Recent events in Israel have been extremely distressing to her and she does not feel comfortable participating in any public events in Israel", the foundation said in a statement on their website.
They went on to say that they feared Portman's decision would "cause our philanthropic initiative to be politicised".
It's not clear whether or not the actress will nonetheless obtain the $1m financial prize. Some believe her reasons stem from the deadly protests occurring along Israel's border with Gaza, where three Palestinians were killed by Israeli fire.
"She is totally one of us, identifies with her Judaism and her Israeliness", she wrote, adding that Portman is "now speaking for many Jews in the United States, and is essentially the young generation".
Israel says it is defending its border and accuses Gaza's rulers, the Islamic militant Hamas group, of trying to carry out attacks under the guise of protests.
Erdan said the Israeli military response was "proportionate, careful, and in line with global law", adding: "the great majority of those killed by Israeli fire have been members of Hamas and other terrorist groups".
The Genesis prize-giving - which celebrates these "who encourage others by way of their dedication to the Jewish neighborhood and Jewish values" by way of their occupation - has now been cancelled.
Dubbed the "Jewish Nobel,"the prize was launched in 2013 and has since been awarded to actor Michael Douglas, ex-New York City Mayor Michael Bloomberg, sculptor Anish Kapoor, and violinist Itzhak Perlman".