Coons, Senate Democrats introduce sanctions bill aiming to block E1 settlement construction
The wide-reaching sanctions would target financial institutions and government officials and entities involved in supporting or facilitating E1 settlement construction
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Sen. Chris Coons (D-DE) speaks at the Senate Appropriations Committee on Capitol Hill on July 14, 2026 in Washington, DC.
Nineteen Senate Democrats, led by Sen. Chris Coons (D-DE), introduced a bill on Wednesday that would impose sanctions on companies, individuals and others involved in the construction and development of Israeli settlements in the E1 area of the West Bank, which the lawmakers argue would be a severe blow to the viability of a Palestinian state.
The far-reaching sanctions would also target financial institutions and government officials and entities involved in supporting or facilitating E1 settlement construction.
Coons’ leadership on the legislation is especially notable because he has historically been seen as one of Israel’s strongest allies on Capitol Hill and he’s in line to be the top Democrat on the Senate Foreign Relations Committee in the next Congress — potentially chairing the influential panel if Democrats take the majority, where he’d have significant latitude to work to advance the bill and other similar measures.
The bill would place mandatory sanctions on anyone “responsible for or complicit in, or [found] to have directly or indirectly engaged in or attempted to engage in” the construction of settlements or related structures in the E1 area; investing in or constructing infrastructure designed to serve the settlements including roads and utilities; or organizing or financing the transfer of Israeli settlers into such settlements.
The sanctions would also apply to those who “knowingly facilitated financial transactions related” to such settlement activity — targeting Israeli or international banks involved in the settlement construction — as well as government entities and leaders involved in E1 settlement construction.
The bill also allows for discretionary sanctions on individuals or entities providing support to those who are sanctioned, and on entities owned or controlled by those sanctioned.
The sanctions authorities would terminate after seven years unless renewed.
Alongside Coons, the bill is being co-led by Sens. Elizabeth Warren (D-MA), Ron Wyden (D-OR) and Ruben Gallego (D-AZ), and is cosponsored by Sens. Michael Bennet (D-CO), Tammy Duckworth (D-IL), Martin Heinrich (D-NM), Tim Kaine (D-VA), Mark Kelly (D-AZ), Andy Kim (D-NJ), Jeff Merkley (D-OR), Chris Murphy (D-CT), Patty Murray (D-WA), Jack Reed (D-RI), Brian Schatz (D-HI), Adam Schiff (D-CA), Elissa Slotkin (D-MI), Chris Van Hollen (D-MD) and Peter Welch (D-VT).
“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,” Coons said in a statement. “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.”
Warren described the E1 project as “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.”
Wyden said that the expansion of West Bank settlements “crosses a clear red line and makes Palestinian statehood and lasting peace even more difficult” and said the U.S. must “must stand up against [Israeli Prime Minister Benjamin] Netanyahu’s campaign of violence and aggression against Palestinian civilians.”
Gallego said that, by severing east Jerusalem from the West Bank, E1 construction would “threaten a viable Palestinian state” and is a “step in the wrong direction.”
“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,” he said.
The bill follows the announcement of sanctions by the U.K. and other U.S. allies targeting Israeli settlements broadly, including both the West Bank and the Golan Heights.
J Street praised the bill, saying, “The era in which right-wing Israeli governments could ignore US demands to halt settlement expansion and expect American politicians to fall in line is over.”
Phil Gordon, who served as national security advisor to former Vice President Kamala Harris, also expressed support, saying, “If [President Donald’ Trump actually cared about addressing settlements or settler violence he could support that; if not his ‘mild’ response to UK means little.”
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