US Senate Democrats to seek sanctions over Israel’s E1 settlement plan

Four lawmakers to introduce bill sanctioning anyone involved in controversial West Bank project; co-author Chris Coons says Washington must send message against settler violence

This picture taken from the E1 area northeast of Jerusalem shows vehicles moving along a highway near the West Bank settlement of Ma'ale Adumim on February 4, 2026. (AHMAD GHARABLI/AFP)

WASHINGTON — A group of US Senate Democrats will introduce legislation on Wednesday to sanction individuals or groups that facilitate Israel’s E1 project, a widely condemned West Bank settlement plan cutting across land the Palestinians seek for a state, according to a copy of the legislation seen by Reuters.

The introduction of the bill is the latest sign of growing friction between Democrats in Congress and the Israeli government over its handling of the West Bank, with many in the party — and a few Republicans — calling for curbs on US military aid to Israel over its conduct of the war against Hamas in Gaza.

US Democratic lawmakers have also recently urged Prime Minister Benjamin Netanyahu to rein in violence by West Bank settlers and mass arrests of Palestinians by Israeli security forces in the territory.

The measure’s lead sponsors are Chris Coons of Delaware, Elizabeth Warren of Massachusetts, Ron Wyden of Oregon and Ruben Gallego of Arizona.

“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,” Coons said in a statement.

The bill has at least 10 co-sponsors, all Democrats.

US Senator Chris Coons, left, the ranking member of the Senate Defense Appropriations Subcommittee, at the Capitol in Washington, May 19, 2026. (J. Scott Applewhite/AP)

Midterms could shift Congress’s stance on Israel

Democrats currently control only 47 seats in the 100-member Senate, but polls show they could win majorities in November 3 midterm elections from US President Donald Trump’s Republicans, who have aligned themselves closely with Netanyahu.

The bill would impose sanctions on foreign companies, individuals or other entities that the Treasury Department 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 also would sanction those who attempt to organize, direct, finance or facilitate the transfer of Israeli civilians into settlements in the E1 area.

Approval of the E1 project, which would bisect the West Bank and cut it off from East Jerusalem, was announced in August 2025 by Finance Minister Bezalel Smotrich.

Along with repeated incidents of extremist settler attacks on local Palestinians, the E1 project was at the heart of Britain’s move to impose sanctions on settlements earlier this month, leading to a diplomatic spat between the two countries.

The two-state solution to the Israeli-Palestinian conflict envisages a Palestinian state in East Jerusalem, the West Bank and Gaza, existing side by side with Israel.

Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the E1 West Bank settlement project between Jerusalem and Ma’ale Adumim on August 14, 2025. (Yonatan Sindel/Flash90)

Western capitals and campaign groups have opposed the E1 settlement project due to concerns that it could undermine a future peace deal with the Palestinians and diminish the chance for the two-state solution.

Most of the international community considers Israeli settlements in the West Bank illegal under international law.

Israel disputes this, citing historical and biblical ties to the area and saying the settlements provide strategic depth and security.

Congress’s lower chamber, the US House of Representatives, is currently not in session, so even in the unlikely chance of the bill’s passage in the Senate, the House would not be expected to take it up before the midterms.

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