Senators Coons, Warren, Wyden, Gallego introduce bill to impose sanctions on Israeli settlement construction in the E1 area of the West Bank

Senators Coons, Warren, Wyden, Gallego introduce bill to impose sanctions on Israeli settlement construction in the E1 area of the West Bank

WASHINGTON - U.S. Senators Chris Coons (D-Del.), Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), and Ruben Gallego (D-Ariz.) today introduced legislation to impose targeted sanctions on companies, individuals, and other entities that facilitate the development of Israeli settlements in the E1 area of the West Bank.

Last year, Israel approved construction of more than 3,000 housing units in the E1 area of the West Bank. In recent weeks, Israel announced tenders to allow companies to bid for construction of these settlements. If completed, these units could sever the West Bank in two, gravely threatening the viability of a future Palestinian state. Israeli officials have publicly acknowledged the impact E1 settlement expansion could have on a two-state solution. Speaking at a ceremony shortly after his approval of the E1 plan, Prime Minister Benjamin Netanyahu reportedly stated, "We said a Palestinian state will not be established - and indeed, a Palestinian state will not be established." Following the initial announcement of the E1 settlements in August 2025, Israeli Finance Minister Bezalel Smotrich reportedly stated: "The Palestinian state is being erased from the table not by slogans but by deeds. Every settlement, every neighborhood, every housing unit is another nail in the coffin of this dangerous idea."

"For decades, American presidents from both parties have warned successive Israeli governments that construction in E1 threatened the viability of a Palestinian state and was unacceptable to the United States,"said Senator Coons. "As Palestinian civilians face a campaign of devastation and fear from violent extremist settlers, the United States must send a strong message that this behavior is unacceptable and that it remains committed to freedom, security, prosperity, and self-determination for all Israelis and Palestinians."

"The E1 settlement project is a move towards de facto annexation of the West Bank, and those who choose to facilitate settlement construction should understand that they risk losing access to the U.S. financial system,"said Senator Warren. "The United States must use all diplomatic and economic tools available to counter rapid settlement expansion and extremist settler violence in the West Bank, spiraling trends that will only undermine the prospect of lasting peace for Israelis and Palestinians."

"Benjamin Netanyahu's disgraceful policy of expanding West Bank settlements crosses a clear red line and makes Palestinian statehood and lasting peace even more difficult,"said Senator Wyden. "The United States must stand up against Netanyahu's campaign of violence and aggression against Palestinian civilians and sanction individuals and companies that are complicit in this unlawful action."

"For decades, Democrats and Republicans alike have pushed for a two-state solution. Proposed Israeli construction of new settlement homes in the E1 area would cut off East Jerusalem from the West Bank and threaten a viable Palestinian state. It's a step in the wrong direction," said Senator Gallego. "This legislation sends a clear message to Prime Minister Netanyahu: the United States stands firmly behind a two-state solution as the only path to real peace and security for all."

The bill would impose sanctions on any foreign person that the Secretary of the Treasury determines to have been responsible for or complicit in the construction of any Israeli settlements or related structures in the E1 area of the West Bank, including by submitting a bid for E1 tenders. It would also impose sanctions on those who attempt to organize, direct, finance, or facilitate the transfer of Israeli civilians into E1 settlements.

In addition to Senators Coons, Warren, Wyden, and Gallego, the bill is also cosponsored by U.S. Senators Michael Bennet (D-Colo.), Tammy Duckworth (D-Ill.), Martin Heinrich (D-N.M.), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Patty Murray (D-Wash.), Jack Reed (D-R.I), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Elissa Slotkin (D-Mich.), Chris Van Hollen (D-Md.), and Peter Welch (D-Vt.).

Full bill text is available here.

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