Imposition of sanctions with respect to Israeli settlement construction in E1 area of the West Bank

(a) Mandatory sanctions Beginning on the date that is 30 days after the date of the enactment of this Act, the President shall impose the sanctions described in subsection (c) with respect to any foreign person that the Secretary of the Treasury, in consultation with the Secretary of State, determines— (1) to have been responsible for or complicit in, or to have directly or indirectly engaged or attempted to engage in— (A) the construction of any Israeli settlements, Israeli settlement units, or related structures in the E1 area of the West Bank, including by— (i) submitting a bid for E1 tenders on or after August 18, 2026; (ii) offering a guarantee related to any such bid; (iii) signing any development or lease agreement related to such construction; or (iv) providing contracting, subcontracting, or professional services related to such construction; (B) the investment in, or construction of, infrastructure that has the purpose or effect of facilitating the establishment of Israeli settlements, Israeli settlement units, or related structures in the E1 area of the West Bank, including roads, water systems, sewage systems, and electricity infrastructure; or (C) organizing, directing, financing, or facilitating the transfer of Israeli civilians into Israeli settlements, Israeli settlement units, or related structures in the E1 area of the West Bank; (2) to have knowingly facilitated financial transactions related to any activity described in paragraph (1); (3) to have participated in activities that advance the financing, planning, construction, or expansion of Israeli settlements, Israeli settlement units, or related structures in the E1 area of the West Bank; and (4) to have been a leader or official of— (A) any entity, including any government entity, that has engaged in, or whose members, employees, or officials have engaged in, any of the activities described in any of paragraphs (1) through (3); or (B) any entity, including any government entity, with respect to which sanctions have been imposed under this section as a result of activities relating to the tenure of the leader or official. (b) Discretionary sanctions The President may impose the sanctions described in subsection (c) with respect to any foreign person that the Secretary of the Treasury, in consultation with the Secretary of State, determines— (1) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person with respect to which sanctions have been imposed under this section; or (2) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person with respect to which sanctions have been imposed under this section. (c) Sanctions described The sanctions described in this subsection are the exercise of all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person described in subsection (a) or (b) if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person. (d) Exceptions (1) Humanitarian assistance Sanctions under this section shall not apply to— (A) the conduct or facilitation of a transaction for the provision of agricultural commodities, food, medicine, medical devices, humanitarian assistance, or for humanitarian purposes; or (B) transactions that are necessary for, or ordinarily incident to, the activities described in subparagraph (A). (2) Exception for intelligence activities Sanctions under this section shall not apply to— (A) any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.); or (B) any authorized intelligence activities of the United States. (e) Implementation; penalties (1) Implementation The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. (2) Penalties The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to any person that violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation, or prohibition issued under this section, to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of such Act (50 U.S.C. 1705(a)). (f) Sunset The provisions of this section, and any sanctions imposed under this section, shall terminate on the date that is 7 years after the date of the enactment of this Act. (g) Definitions In this section: (1) Foreign person The term foreign person means an individual or entity that is not a United States person. (2) Knowingly The term knowingly, with respect to conduct, a circumstance, or a result, means that a person had actual knowledge, or should have known, of the conduct, the circumstance, or the result. (3) United states person The term United States person means— (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; (B) an entity organized under the laws of the United States or any jurisdiction within the United States, including a foreign branch of such an entity; or (C) any person located in the United States.