Stop the Settlements Act
- Sponsor
- Rep. Castro, Joaquin [D-TX-20]
- Committees
- Judiciary Committee (primary)
- Last action
- Oct 1, 2026
Bottom line
This bill seeks to use U.S. sanctions and trade restrictions to deter the expansion of Israeli settlements in the West Bank and Gaza, aiming to preserve the viability of a future Palestinian state.
What it actually does
This bill mandates and authorizes the President to impose sanctions, including asset blocking and visa restrictions, on foreign persons involved in the construction, expansion, or facilitation of Israeli settlements or outposts in the West Bank or Gaza after September 30, 2026. It also directs the Financial Crimes Enforcement Network (FinCEN) to issue guidance to financial institutions regarding these activities and prohibits the import of goods produced in these settlements into the United States. The Act includes a 10-year sunset clause.
Proponents argue
Supporters argue this bill is a necessary step to uphold international law, promote human rights, and preserve the possibility of a two-state solution by directly addressing activities that undermine peace efforts. They contend that continued settlement expansion makes a contiguous and viable Palestinian state increasingly difficult to achieve, and that U.S. policy should reflect a commitment to these principles.
Opponents contend
Opponents may argue that this bill interferes with Israeli sovereignty and security interests, potentially harming the U.S.-Israel relationship and complicating diplomatic efforts. They might also contend that such sanctions could be counterproductive, exacerbating tensions rather than fostering peace, and that the U.S. should not dictate Israeli construction policies.
The bill is relatively short and its core provisions are clear, making it accessible for an informed reader to evaluate within a reasonable timeframe.
Section 2(a)
Mandatory Sanctions on Activities Supporting Israeli Settlements
This provision requires the President to impose sanctions on any foreign person determined to be responsible for, complicit in, or directly or indirectly engaged in the construction or investment in infrastructure for Israeli settlements or outposts in the West Bank or Gaza after September 30, 2026. It specifically targets construction in the "E1" settlement area and facilitation of civilian population transfer into settlements.
Supporters argue
Supporters argue this provision directly addresses the core issue of settlement expansion by imposing clear consequences, thereby creating a strong deterrent against activities that undermine a two-state solution.
Critics contend
Opponents may argue that these mandatory sanctions are an overreach, infringing on Israeli sovereignty and potentially escalating tensions rather than promoting peace. They might also contend that such measures could be seen as punitive rather than diplomatic.
Tradeoffs
Balances the U.S. commitment to a two-state solution with concerns about interfering in the internal affairs of an ally and potential diplomatic fallout.
Section 2(b)
Discretionary Sanctions for Undermining a Palestinian State
This section grants the President discretion to impose sanctions on foreign persons involved in financing, planning, construction, expansion, or maintenance of Israeli settlements or outposts if these activities are determined to undermine the viability of a future Palestinian state. It also covers those who materially assist sanctioned persons.
Section 2(c)
Types of Sanctions Imposed
This subsection details the specific sanctions that can be imposed: asset blocking (prohibiting transactions in property and interests in property in the U.S. or controlled by U.S. persons) and visa/admission restrictions (inadmissibility to the U.S., ineligibility for visas, and revocation of current visas).
Section 2(d)
Exceptions for International Obligations, National Security, and Humanitarian Aid
This provision outlines exceptions to the sanctions. It exempts admissions necessary to comply with international obligations (e.g., UN Headquarters Agreement), authorized intelligence, law enforcement, or national security activities, and transactions for humanitarian assistance (agricultural commodities, food, medicine, medical devices, or other humanitarian purposes).
Section 2(f)
Presidential Waiver for National Security Interests
The President is granted authority to waive the application of sanctions for up to 12 months, renewable for an additional 12 months, if certifying to Congress that the waiver is vital to the national security interests of the United States. The certification must include information on the foreign person and their activities.
Section 2(g)
Presidential Reports to Congress on Sanctions and Settlement Status
This section mandates that the President submit a report to appropriate congressional committees every 180 days, starting 90 days after enactment. The report must assess the implementation of sanctions, list sanctioned persons and waived persons, describe settlement expansion status, assess U.S. person involvement in settlement activities, and detail U.S. actions to protect a Palestinian state's viability.
Section 3
Financial Crimes Enforcement Network Guidance
Directs the Director of the Financial Crimes Enforcement Network (FinCEN), in consultation with the Director of the Office of Foreign Assets Control (OFAC), to issue guidance to financial institutions within 120 days of enactment regarding activities related to Israeli settlements or outposts. This guidance must be updated every 180 days.
Section 4
Prohibition on Import of Goods from Israeli Settlements
Beginning 120 days after enactment, this section prohibits the import into the United States of any goods produced or manufactured wholly or in part in Israeli settlements or outposts in the West Bank or Gaza. The President must develop and update a list of such settlements. An exception is made for personal baggage not in commercial quantities.
Section 5
Ten-Year Sunset Clause
This Act will terminate on the date that is 10 years after its date of enactment.
Grants the President authorities under sections 203 and 205 of the International Emergency Economic Powers Act (IEEPA) to carry out the sanctions and applies IEEPA penalties (section 206(b) and (c)) for violations.
Section 2(e)
Why it matters:Standard legislative practice to avoid redundancy and leverage existing legal frameworks for sanctions enforcement.
Case for: Streamlines legislation by using established legal mechanisms for enforcement, ensuring consistency with existing sanctions programs.
Case against: Requires external legal knowledge to fully understand the enforcement powers and potential penalties, making it less accessible to a casual reader.
Estimated impact: Potentially severe civil and criminal penalties for violations, consistent with other U.S. sanctions regimes.