US Senate Democrats seek sanctions over Israeli settlements, bill says

Israeli Finance Minister Bezalel Smotrich and a woman hold a map that shows the long-frozen E1 settlement scheme, that would split East Jerusalem from the occupied West Bank, on the day of a press conference near the Israeli settlement of Maale Adumim, in the Israeli-occupied West Bank, August 14, 2025. REUTERS/Ronen Zvulun

WASHINGTON, Sept 23 - 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 in Gaza.

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

Democrats currently control only 47 seats in the 100-member Senate, but polls show they could win majorities in November 3 midterm elections from 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 occupied West Bank and cut it off from East Jerusalem, was announced in August 2025 by Israeli Finance Minister Bezalel Smotrich.

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

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. REUTERS