Congress removes 40-year ban on federal spending in Israeli territories
H.R. 4983 — KOTEL Act · Filed by Michael Lawler (R-NY) · Introduced Aug 15, 2025 · Referred to committee
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What it does
This bill repeals Section 414 of the 1986 Omnibus Diplomatic Security and Antiterrorism Act, which currently prohibits the use of federal funds for site acquisition, development, or construction of facilities in Israel, Jerusalem, or the West Bank. Repealing this prohibition would allow the U.S. government to spend federal money on construction and development projects in those territories.
Why we flagged it
The bill is a narrow repeal of a spending restriction on a specific geographic region, functioning as a foreign-policy authorization that removes a prior constraint on executive discretion to allocate funds. It is not a direct appropriation but an enabling mechanism.
What the text implies
- The bill does not appropriate funds; it only removes a legal barrier. Actual spending would require separate appropriations, meaning the civic impact depends on future congressional budget decisions.
- Repealing the prohibition may signal a shift in U.S. foreign policy toward the Israeli-Palestinian conflict, but the bill itself contains no policy statement or conditions on how funds may be used.
The full analysis lists 3 implications of this text.
Who stands to gain
construction contractors operating in Israel/Jerusalem/West Bank; U.S. government agencies with diplomatic or development missions in the region