A proposed US law supporting a negotiated two-state solution could influence Washington’s relationship with Israel even if it never becomes law, according to an analysis published by the Georgetown Journal of International Affairs.

The Two-State Solution Act was introduced in 2021 by then-US Representative Andy Levin. It sought to make a two-state outcome the stated goal of American policy and to draw a clear distinction between Israel and the territories occupied in 1967.

Foreign aid and settlement policy

The proposal called for closer scrutiny of how US assistance is used. It opposed directing American aid toward settlement construction, Palestinian home demolitions or other actions that could obstruct a negotiated peace agreement.

The analysis argued that security assistance gives Washington significant influence. Israeli governments may resist outside pressure over settlements, but the possibility of restrictions on US military and diplomatic support could still affect policy decisions.

A wider political message

The legislation also challenged the labeling of settlement products as “Made in Israel” and urged US agencies to prevent American-supplied equipment from undermining the prospects for two states. Its provisions echoed international demands to distinguish Israel from territories occupied during the 1967 war.

Although the bill faced uncertain prospects in Congress, its author’s approach reflected growing impatience among some US lawmakers with policies seen as making a future Palestinian state less viable. The debate showed how Congress could use foreign assistance and diplomatic backing to press both sides toward negotiations.

Source: Analysis by Galia Golan, published by the Georgetown Journal of International Affairs.