The bill, sponsored by Senators Chris Coons of Delaware, Elizabeth Warren of Massachusetts, Ron Wyden of Oregon and Ruben Gallego of Arizona, targets anyone the Treasury Department determines to be responsible for or complicit in building settlements or related infrastructure in the E1 zone, a strip of land that would split the occupied West Bank from East Jerusalem if approved.
E1, announced in August 2025 by Israeli Finance Minister Bezalel Smotrich, has drawn sharp criticism from the international community, which largely deems Israeli settlements in the West Bank illegal under international law. Critics argue the plan would undermine the prospect of a two‑state solution by severing Palestinian territorial continuity.
The proposed legislation would also sanction parties that organize, direct, finance or facilitate the transfer of Israeli civilians into the E1 area, as well as those that submit bids for E1 construction contracts. The measure currently has at least ten Democratic co‑sponsors.
The initiative reflects growing tension between many Democrats and the Israeli government over Washington’s policy toward the Gaza war and West Bank settlement activity. Several Senate Democrats, alongside a handful of Republicans, have recently called for restrictions on U.S. military aid to Israel in response to civilian casualties in Gaza and escalating settler violence in the occupied territories.
Democrats hold 47 of the 100 Senate seats, but polls suggest they could gain a majority in the November 3 midterm elections, potentially increasing the bill’s chances of passage. Even if the Senate approves the measure, the House of Representatives is not in session, meaning further legislative action would likely be delayed until after the elections.
U.S. officials have also urged Israeli Prime Minister Benjamin Netanyahu to curb settler violence and the mass arrests of Palestinians in the West Bank, underscoring a broader push by Congress to pressure Israel on human‑rights concerns while maintaining the strategic partnership.