A group of Democratic senators is set to introduce legislation Wednesday that would impose U.S. sanctions on foreign companies, individuals and other entities involved in Israel’s proposed E1 settlement project in Judea and Samaria, according to a copy of the bill reviewed by Reuters.

The legislation is being led by Senators Chris Coons, Elizabeth Warren, Ron Wyden and Ruben Gallego and has at least 10 Democratic co-sponsors. It would authorize the Treasury Department to target entities involved in constructing settlements or related infrastructure in the E1 area, including companies participating in tenders for the project. The measure would also apply to those who organize, finance or otherwise facilitate the relocation of Israeli civilians into E1 settlements.

The E1 plan received approval from Israeli Finance Minister Bezalel Smotrich in August 2025. The proposed development area lies between Jerusalem and Ma’ale Adumim, and opponents say construction there could affect territorial contiguity in a future Palestinian state. Israel disputes the characterization of its settlements as illegal under international law, while most of the international community considers them contrary to international law.

The legislation comes amid increased disagreement among congressional Democrats over Israeli policies in Judea and Samaria and the ongoing Gaza war. Some Democrats, along with several Republicans, have called for restrictions on U.S. military assistance to Israel, while Democratic lawmakers have also pressed the Israeli government over settler violence and arrests of Palestinians.

The House is currently out of session, meaning the legislation would not be expected to receive consideration there before the midterm elections even if it advances through the Senate.