A group of Democratic senators is preparing legislation that would impose sanctions on individuals and entities facilitating Israel’s E1 settlement project in the occupied West Bank, marking another sign of growing friction between some US lawmakers and the Israeli government over its policies in Palestinian territory.
The measure, set to be introduced Wednesday, has at least 10 Democratic co-sponsors and targets involvement in a project that would connect Israeli settlements near Ma’ale Adumim with occupied East Jerusalem.
The legislation is led by Senators Chris Coons of Delaware, Elizabeth Warren of Massachusetts, Ron Wyden of Oregon and Ruben Gallego of Arizona.
It would authorize sanctions against foreign companies, individuals and other entities that the Treasury Department determines were responsible for or complicit in constructing settlements or related structures in the E1 area.
That would include entities submitting bids for E1 tenders, as well as those organizing, directing, financing or facilitating the transfer of Israeli civilians into settlements there.
The initiative follows other congressional efforts focused on Israeli policy in the West Bank, including calls for Israel to curb settler violence and mass arrests of Palestinians.
More than 20 Senate Democrats have also introduced a resolution seeking an investigation into rising West Bank violence, in which at least nine US citizens have been killed.
Democratic lawmakers have increasingly sought restrictions on US military support for Israel, while some Republicans have also questioned Washington’s relationship with the country.
The E1 project would bisect the occupied West Bank and separate it from East Jerusalem, territory Palestinians seek as part of a future state.
Israeli Finance Minister Bezalel Smotrich announced approval of the project in August 2025, and criticism intensified after the Israeli government invited bids last month for construction of 1,200 units.
Governments across Europe, North America and the Middle East have objected to the project.
The United Nations Human Rights Office described E1 as a “grave and unlawful step to consolidate annexation”.
Israel disputes the international position that West Bank settlements are illegal, citing historical and biblical ties as well as security considerations.
President Donald Trump’s administration has not directly addressed E1 but has reiterated its opposition to Israeli annexation of the West Bank.
The House of Representatives is currently out of session and would not be expected to consider the legislation before the November midterm elections.