Stop the Settlements Act

Summary#

The Stop the Settlements Act is a proposed new federal law, not an amendment to a named Act. It would create sanctions tied to Israeli settlements and outposts in the West Bank or Gaza, and prohibit imports of goods made wholly or partly there; its stated goal is to address settlement activity and protect the viability of a future Palestinian state. The bill was introduced in the House and has not become law.

  • The President must impose the bill’s sanctions on foreign people or entities found responsible for specified settlement construction or expansion activity, helping transfer Israeli civilians into settlements or outposts, or leading certain entities involved in that activity. The President may impose sanctions on other foreign people or entities in listed categories, including those who materially support already-sanctioned people.
  • Sanctions can block property and transactions within U.S. reach, and deny entry benefits to covered foreign nationals. Officials must revoke their current visas or entry documents; the bill provides limited exceptions, including for humanitarian transactions and authorized U.S. intelligence, law enforcement, and national security activity.
  • Starting 120 days after enactment, goods made wholly or partly in listed settlements or outposts could not be imported into the United States. A narrow exception covers qualifying personal goods carried by a traveler, but not goods shipped separately.
  • The President must keep a list of settlements and outposts for the import ban. Financial Crimes Enforcement Network must issue guidance to financial institutions within 120 days and update it at least every 180 days.
  • The President must report to Congress every 180 days on sanctions, waivers, settlement expansion, U.S. support for construction, and related U.S. and regional actions. The Act would end 10 years after enactment.

What it means for you#

  • Foreign people and entities involved in covered activity: The President would have to impose sanctions if the required determination is made for a mandatory category. Other listed conduct could lead to sanctions, but those are optional. A President could waive sanctions for up to 12 months, with one possible renewal, after certifying national security grounds to Congress.
  • Importers and businesses: They could not import covered goods, even if only part of a good was made in a settlement or outpost. The bill does not set out a detailed process for proving where goods were made.
  • Financial institutions: They would receive federal guidance about activities related to settlements and outposts. The bill does not itself specify particular checks or customer-review steps.
  • Travelers: The personal-baggage exception applies only to goods carried with the traveler for personal use, including a bona fide gift, and not in commercial quantities or for resale.
  • U.S. residents and businesses: The bill does not make U.S. people or entities eligible for the foreign-person sanctions. It does apply penalties for violating regulations made to carry out the sanctions, and the import ban applies to imports regardless of who imports them.
  • Federal agencies and taxpayers: Agencies would have to issue regulations, guidance, lists, and reports. The bill does not establish a new independent agency.

Money#

No publicly available information gives an estimate of the bill’s public cost, savings, or lost revenue.

  • Federal agencies would have to carry out the duties described above, but the bill gives no staffing or budget estimate.
  • Businesses may face costs to comply with the import ban or sanctions rules; no amount is provided.
  • The bill provides penalties for violations of regulations implementing the sanctions, but does not set a separate penalty amount in its text.

What is unclear#

  • The bill does not define key terms such as “settlements or outposts,” “facilitated,” or “undermines the viability” of a future Palestinian state.
  • It does not spell out how the President or Treasury would make and review determinations, or what notice or appeal process affected people or entities would have.
  • It does not explain how importers should establish the origin of goods containing materials made in a settlement or outpost, or how the continuously updated list would be applied.
  • The bill does not give a cost estimate or say how agencies would fund the required work.
  • The bill is at an early stage; passage is uncertain, and it does not provide a start date other than deadlines measured from enactment.

Case for#

  • The bill appears intended to discourage settlement construction and expansion by restricting access to U.S. financial transactions and entry, and by banning imports of goods made in settlements or outposts.
  • A possible argument for the import ban is that it applies to goods made wholly or partly in the listed locations, rather than relying only on voluntary business choices.
  • Regular reports to Congress could give lawmakers information about sanctions, waivers, settlement activity, and U.S. support.
  • The humanitarian exception could allow specified food, medicine, medical devices, and aid transactions to continue despite the sanctions.

Case against#

  • The bill uses terms that are not defined, while allowing sanctions for a broad range of direct and indirect involvement. That could make it hard for affected people and businesses to know what conduct triggers sanctions.
  • The import ban could be difficult to apply to goods with mixed or unclear origins, and the bill does not set out an origin-checking process.
  • The bill does not describe notice, review, or appeal procedures for people or entities designated for sanctions.
  • The bill assigns new duties to federal agencies but provides no cost estimate or funding details.