# Plain Language Summary: Two-State Solution Act

This bill is about U.S. policy toward the Israeli-Palestinian conflict. It expresses Congress's support for a two-state solution—meaning both Israel and Palestine would exist as separate, independent countries living peacefully side by side. The bill aims to guide how the U.S. government uses its money and diplomatic relationships to encourage this outcome and discourage actions that make peace harder to achieve.

The bill takes several concrete steps to put this policy into practice. First, it changes how products are labeled when they come into the United States. If something is made in the West Bank or Gaza, it must now be labeled as coming from "West Bank/Gaza" rather than labeled as Israeli products. This is meant to distinguish between goods made in Israel proper versus goods made in the occupied territories. Second, the bill restricts how U.S. military aid to Israel can be used. The law says this aid cannot be used to support Israeli settlement expansion, home demolitions, or forced evictions of Palestinians—actions the bill considers obstacles to peace. The bill also limits U.S. funding for research projects between America and Israel if those projects take place in territories Israel has controlled since 1967.

On the Palestinian side, the bill authorizes $20 million per year (through 2027) to support Palestinian civil society organizations, democracy programs, and economic development. The idea is that a stronger Palestinian government with better governance and more public trust will be better positioned to negotiate peace. The bill also makes it easier for the U.S. to maintain diplomatic relations with Palestinian organizations and allows for educational programs that bring Israelis and Palestinians together. Overall, the bill tries to use American money and policy as leverage to encourage both sides toward negotiation while discouraging unilateral actions that would make a two-state solution less likely.

Two-State Solution Act

Levin, Andy

Two-State Solution Act This bill addresses U.S. policy and related activities to preserve conditions for a two-state solution to resolve territorial disputes between Israel and Palestine. The bill prohibits the United States from providing support for projects in geographic regions that came under Israeli control after June 5, 1967. It also prohibits the use of any U.S. security assistance, defense articles, or defense services provided to Israel for efforts to annex or exercise permanent control over any part of the West Bank or Gaza. Current law designates the Palestine Liberation Organization (PLO) as a terrorist organization and restricts its activities (e.g., prohibiting it from maintaining an office in the United States). The President may waive for up to six months some of these restrictions to serve U.S. national security or diplomatic interests. If the President certifies that the PLO has ceased supporting terrorist actions and met other conditions, the bill automatically terminates the terrorist organization designation. Goods produced in the West Bank or Gaza that are imported into the United States must indicate those areas as the country of origin on their labels. The bill expands the scope of certain foreign and development assistance to foster initiatives, including shared educational opportunities and youth activities, that connect Israelis and Palestinians. Additionally, the Department of State and the U.S. Agency for International Development may jointly award grants to private, nonprofit organizations to promote human rights and democracy, strengthen civil society, and otherwise address the needs of the Palestinian people.