I 
117TH CONGRESS 
1ST SESSION H. R. 5344 
To preserve conditions for, and improve the likelihood of, a two-state solution 
that secures Israel’s future as a democratic state and a national home 
for the Jewish people, a viable, democratic Palestinian state, an end 
to Israel’s occupation of the Palestinian territories, and peaceful relations 
between the two states, and to direct the Department of State and 
other relevant agencies to take steps to accomplish these ends. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 23, 2021 
Mr. LEVIN of Michigan (for himself, Mr. BEYER, Mr. BLUMENAUER, Mr. CAS-
TRO of Texas, Mr. COHEN, Mr. CONNOLLY, Mr. DOGGETT, Ms. ESHOO, 
Mr. HUFFMAN, Ms. JACOBS of California, Ms. JOHNSON of Texas, Ms. 
KAPTUR, Mr. KHANNA, Mr. KILDEE, Ms. KUSTER, Ms. LEE of Cali-
fornia, Mr. LOWENTHAL, Mr. MCGOVERN, Mr. PRICE of North Carolina, 
Mr. RASKIN, Ms. SCHAKOWSKY, Ms. SPEIER, Mrs. WATSON COLEMAN, 
Mr. WELCH, Mr. YARMUTH, and Ms. STANSBURY) introduced the fol-
lowing bill; which was referred to the Committee on Foreign Affairs, and 
in addition to the Committee on Ways and Means, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To preserve conditions for, and improve the likelihood of, 
a two-state solution that secures Israel’s future as a 
democratic state and a national home for the Jewish 
people, a viable, democratic Palestinian state, an end 
to Israel’s occupation of the Palestinian territories, and 
peaceful relations between the two states, and to direct 
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the Department of State and other relevant agencies 
to take steps to accomplish these ends. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Two-State Solution 
Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) In May 2021, President Joseph R. Biden 
stated, ‘‘the Palestinians and Israelis equally deserve 
to live safely and securely, and enjoy equal measures 
of freedom, prosperity and democracy’’. 
(2) The United States has, under Democratic 
and Republican administrations since 2002, sup-
ported a two-state solution. 
(3) On December 6, 2019, the House of Rep-
resentatives passed House Resolution 326 on a bi-
partisan basis, expressing the sense of the House of 
Representatives that ‘‘only the outcome of a two- 
state solution that enhances stability and security 
for Israel, Palestinians, and their neighbors can both 
ensure the state of Israel’s survival as a Jewish and 
democratic state and fulfill the legitimate aspirations 
of the Palestinian people for a state of their own’’ 
and that ‘‘a United States proposal to achieve a 
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just, stable, and lasting solution to the Israeli-Pales-
tinian conflict should expressly endorse a two-state 
solution as its objective and discourage steps by ei-
ther side that would put a peaceful end to the con-
flict further out of reach’’. 
(4) Democratic and Republican presidents have 
identified Israeli settlements as an obstacle to peace. 
President Ronald Reagan said, ‘‘further settlement 
activity is in no way necessary for the security of 
Israel and only diminishes the confidence of the 
Arabs that a final outcome can be freely and fairly 
negotiated’’. In 2003, President George W. Bush 
stated, ‘‘As progress is made towards peace, settle-
ment activity in the occupied territories must end.’’. 
(5) On April 21, 1978, State Department Legal 
Adviser Herbert J. Hansell issued a legal opinion 
concluding that ‘‘the establishment of the Israeli ci-
vilian settlements in the territories occupied by 
Israel is inconsistent with international law’’. Sec-
retary of State Mike Pompeo repudiated the 1978 
legal opinion on November 18, 2019. 
(6) During the Trump Administration, Israel 
accelerated its advancement of settlement plans by 
more than 154 percent, as compared to the prior ad-
ministration. 
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(7) During the final year of the Trump Admin-
istration, the Israeli Government demolished 273 
homes belonging to Palestinian families in the West 
Bank, the highest number of demolitions since 2016. 
As a result, 1,006 Palestinians, 519 of them minors, 
were displaced. 
(8) The Arms Export Control Act places nu-
merous conditions and restrictions on the assistance 
it authorizes, including a prohibition on the use of 
such assistance ‘‘for purposes other than those for 
which [it has been] furnished’’ without prior presi-
dential consent and a requirement that sales agree-
ments entered into after November 29, 1999 allow 
the United States to verify ‘‘credible reports’’ that 
assistance has been used for unauthorized purposes. 
The Foreign Assistance Act of 1961 also places con-
ditions and restrictions on the aid it authorizes and 
mandates that international security assistance pro-
grams ‘‘promote and advance human rights and 
avoid identification of the United States, through 
such programs, with governments which deny to 
their people internationally recognized human rights 
and fundamental freedoms, in violation of inter-
national law or in contravention of the policy of the 
United States’’. 
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(9) Dating back to the administration of Presi-
dent Dwight D. Eisenhower, the United States has 
delineated explicitly authorized uses of the aid it 
provides to Israel. 
(10) Congress passed and President George W. 
Bush signed into law the Fiscal Year 2003 Emer-
gency Wartime Supplemental Appropriations Act 
(Public 
Law 
108–11), 
which 
authorized 
$9,000,000,000 in loan guarantees for Israel over 3 
years and $1,000,000,000 in military grants. Public 
Law 108–11 stated, ‘‘guarantees may be issued 
under this section only to support activities in the 
geographic areas which were subject to the adminis-
tration of the Government of Israel before June 5, 
1967’’. 
(11) House Report 117–84, in explanation of 
the accompanying bill making appropriations for the 
Department of State, foreign operations, and related 
programs, for the fiscal year ending September 30, 
2022, which passed in the House of Representatives 
on July 28, 2021, states, ‘‘the Committee urges the 
Secretary of State to address in bilateral consulta-
tions with Israel the importance of ensuring that 
MOU-supported equipment is not used in any way 
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that undermines the prospects of a negotiated two- 
state solution’’. 
SEC. 3. PURPOSE. 
The purpose of this Act is to preserve conditions for, 
and improve the likelihood of a two-state solution that se-
cures Israel’s future as a democratic state and a national 
home for the Jewish people, a viable, democratic Pales-
tinian state, an end to Israel’s occupation of the Pales-
tinian territories, and peaceful relations between the two 
states, and to direct the Department of State and other 
relevant agencies to take steps to accomplish these ends. 
SEC. 4. STATEMENT OF POLICY. 
It is the policy of the United States— 
(1) that only the outcome of a two-state solu-
tion can both ensure the state of Israel’s survival as 
a democratic state and a national home for the Jew-
ish people and fulfill the legitimate aspirations of the 
Palestinian people for a state of their own; 
(2) to discourage steps by either party to the 
conflict that would put a peaceful end to the conflict 
further out of reach; 
(3) that the establishment of Israeli settlements 
in the occupied Palestinian territories is inconsistent 
with international law; 
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(4) that settlement expansion, demolitions of 
Palestinian homes, revocations of residency permits, 
and forced evictions of Palestinian civilians by Israel 
impede the establishment of a Palestinian state and 
violate the human rights of the Palestinian people; 
(5) to continue to implement fully the Memo-
randum of Understanding between the United States 
and Israel signed in 2016 and to help Israel address 
the myriad challenges it faces, including terrorism, 
and threats posed by actors in the region, such as 
Iran; 
(6) that the use of United States funding pro-
vided through the 2016 Memorandum of Under-
standing by the Government of Israel for activities 
that put a two-state solution further out of reach, 
including those that expand settlements, would be 
detrimental to Israel’s security and inconsistent with 
section 2754 of title 22, United States Code, under 
which ‘‘Defense articles and defense services shall be 
sold or leased by the United States Government 
under this chapter to friendly countries solely for in-
ternal security, for legitimate self-defense’’ and other 
limited purposes; 
(7) to support programming that bolsters Pal-
estinian civil society organizations and Palestinian 
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government reforms, with the goal of fostering a 
Palestinian government that is democratic and en-
joys credibility among the Palestinian people; 
(8) to oppose restrictions on civil liberties in the 
occupied Palestinian territories, including the arrest 
of activists, journalists, and peaceful protesters, and 
to support an end to the torture or abuse of individ-
uals in detention; and 
(9) that a Palestinian government that respects 
civil and human rights and enjoys legitimacy among 
the Palestinian people is both necessary in its own 
right and important for productive negotiations on a 
two-state solution. 
SEC. 5. UNITED STATES POLICY RELATING TO THE OCCU-
PIED PALESTINIAN TERRITORIES. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States that the West Bank, including East Jeru-
salem, and Gaza are occupied territories and should be 
referred to as such consistently in official United States 
policies, communications, and documents. 
(b) MARKING OF IMPORTED ARTICLES.— 
(1) IN GENERAL.—Section 304 of the Tariff 
Act of 1930 (19 U.S.C. 1304) is amended— 
(A) by redesignating subsection (l) as sub-
section (m); and 
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(B) by inserting after subsection (k) the 
following: 
‘‘(l) ARTICLES PRODUCED IN THE OCCUPIED PALES-
TINIAN TERRITORIES.—Articles imported into the United 
States that are produced in the occupied Palestinian terri-
tories (as such term is defined in section 10(2) of the Two- 
State Solution Act) shall have their place of production 
marked as ‘West Bank/Gaza’, ‘West Bank/Gaza Strip’, or 
‘West Bank and Gaza’ and shall not contain the words 
‘Israel’, ‘Made in Israel’, ‘Occupied Territories-Israel’, or 
words of similar meaning.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) take effect on the date of the en-
actment of this Act and apply with respect to any 
article described in subsection (l) of section 304 of 
the Tariff Act of 1930 (19 U.S.C. 1304), as added 
by paragraph (1), that is imported into the customs 
territory of the United States on or after the date 
that is 30 days after such date of enactment. 
(c) GEOGRAPHIC RESTRICTIONS RELATING TO U.S.- 
ISRAEL
BINATIONAL
FOUNDATIONS.—Notwithstanding 
any other provision of law, the United States may not pro-
vide support for projects conducted in geographic areas 
which came under the administration of the Government 
of Israel after June 5, 1967, and may not relate to sub-
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jects primarily pertinent to such areas, pursuant to agree-
ments relating to the Binational Industrial Research and 
Development Foundation (BIRD), the Binational Science 
Foundation (BSF), and the Binational Agricultural Re-
search and Development Foundation (BARD). 
SEC. 6. SECURITY ASSISTANCE RELATING TO THE OCCU-
PIED PALESTINIAN TERRITORIES. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the United States should ensure the aid it 
provides to Israel does not facilitate unilateral ac-
tions by the Israeli Government that impede the 
achievement of a two-state solution, including 
through unilateral efforts to annex or exercise per-
manent control by Israel over any part of the occu-
pied Palestinian territories, is not used in a manner 
that violates internationally recognized human 
rights, and is used exclusively for the purposes au-
thorized by law; and 
(2) there should be robust oversight of United 
States funding provided though the Memorandum of 
Understanding between the United States and Israel 
signed in 2016, in accordance with the Foreign As-
sistance Act of 1961 and the Arms Export Control 
Act. 
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(b) RESTRICTION UNDER SECURITY ASSISTANCE 
ACT OF 2000.—Section 513(c) of the Security Assistance 
Act of 2000 (Public Law 106–280; 114 Stat. 856) is 
amended by adding at the end the following: 
‘‘(5) RULES
OF
CONSTRUCTION.—Nothing in 
this section may be construed— 
‘‘(A) to provide authorization for the use 
of funds for programs, projects, activities, any 
type of materiel assistance, or other operations 
that further, aid, or support unilateral efforts 
to annex or exercise permanent control by 
Israel over any part of the occupied Palestinian 
territories (as such term is defined in section 
10(2) of the Two-State Solution Act), including 
by expansion of Israeli settlements, demolitions 
in Palestinian communities or evictions of Pal-
estinian residents from their homes; or 
‘‘(B) to provide authorization for the use 
of funds for programs, projects, activities, any 
type of materiel assistance, or other operations 
that further, aid, or support unilateral efforts 
in contravention of section 620M of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2378d) or 
section 362 of title 10, United States Code.’’. 
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(c) RESTRICTION UNDER ARMS EXPORT CONTROL 
ACT.—Section 4 of the Arms Export Control Act (22 
U.S.C. 2754) is amended by adding at the end before the 
period the following: ‘‘: Provided further, That no defense 
articles or defense services may be sold or leased by the 
United States Government under this Act to further, aid, 
or support unilateral efforts to annex or exercise perma-
nent control by Israel over any part of the occupied Pales-
tinian territories (as such term is defined in section 10(2) 
of the Two-State Solution Act), including by expansion of 
Israeli settlements, demolitions in Palestinian commu-
nities or evictions of Palestinian residents from their 
homes’’. 
SEC. 7. ASSISTANCE TO ADDRESS THE IMMEDIATE AND 
LONG-TERM NEEDS OF THE PALESTINIAN 
PEOPLE. 
(a) FINDINGS.—Congress finds the following: 
(1) Palestinian Authority President Mahmoud 
Abbas postponed elections planned for 2021, 
prompting significant criticism and exacerbating 
popular Palestinian opposition stemming from the 
absence of a Palestinian state, violations of human 
rights and civil liberties, official corruption, and poor 
governance. 
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(2) Since 2007, the militant organization 
Hamas, a United States-designated terrorist organi-
zation, has maintained control over Gaza, which 
faces a humanitarian crisis resulting from poor gov-
ernance, recurrent conflict, and the Israeli and 
Egyptian blockade that restricts the movement of 
people and goods. Hamas has fired rockets at Israeli 
population centers, resulting in deaths of civilians in 
Israel, as well as Palestinian civilians in Gaza due 
to misfires. 
(3) The Consolidated Appropriations Act, 2021, 
imposes on assistance to the Palestinians certain re-
strictions and conditions, with limited exemption au-
thorities, regarding any future Palestinian state and 
its governing entity, certifications and vetting prior 
to the obligation of funds, audit requirements, a 
general prohibition on assistance for the Palestinian 
Authority, and a prohibition on assistance for the 
Palestine Liberation Organization, Hamas, or ‘‘any 
entity effectively controlled by Hamas, any power- 
sharing government of which Hamas is a member, 
or that results from an agreement with Hamas and 
over which Hamas exercises undue influence’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that investments in Palestinian democracy, civil soci-
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ety organizations, and economic development will promote 
better governance and community engagement and im-
prove the likelihood of free and fair elections, in turn set-
ting the stage for negotiations in which a Palestinian gov-
ernment genuinely speaks for the Palestinian people. 
(c) GRANTS AUTHORIZED.—Subject to subsection 
(d), the Secretary of State and the Administrator of the 
United States Agency for International Development are 
authorized to jointly provide grants on an open and com-
petitive basis to private, nonprofit organizations to sup-
port programs that promote human rights, democracy, 
and the rule of law, and strengthen civil society organiza-
tions to address the immediate and long-term needs of the 
Palestinian people in the occupied Palestinian territories 
in a manner that supports the sustainability of such orga-
nizations in implementing Palestinian-led humanitarian 
and development programs. 
(d) LIMITATION ON USE OF FUNDS.—None of the 
funds made available to carry out this section, or any 
amendment made by this section, may be used to pro-
vide— 
(1) financial assistance to the national govern-
ment of any foreign country; 
(2) assistance for— 
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(A) any individual or group the Secretary 
of State determines to be involved in, or advo-
cating, terrorist activity; or 
(B) any individual who is a member of a 
foreign terrorist organization (as designated 
pursuant to section 219 of the Immigration and 
Nationality Act (8 U.S.C. 1189)); or 
(3) assistance for the Palestinian Authority or 
the Palestine Liberation Organization. 
(e) APPLICABLE REGULATIONS.—Assistance made 
available under this Act, and any amendment made by this 
Act, shall adhere to the mission directives and vetting 
practices for assistance for the West Bank and Gaza, as 
set forth by the United States Agency for International 
Development. 
(f) REPORTS.—Not later than one year after the date 
of the enactment of this Act, and annually thereafter, the 
Secretary of State and the Administrator of the United 
States Agency for International Development shall jointly 
submit to the appropriate congressional committees a re-
port on the implementation of grants authorized under 
this section and the progress and impact of such grants 
on the Palestinian people, including effects related to civic 
engagement, trust in civic institutions, and the long-term 
viability of Palestinian civil society organizations. Not 
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later than 180 days after the date of the enactment of 
this Act, the Secretary of State and the Administrator of 
the United States Agency for International Development 
shall jointly submit to the appropriate congressional com-
mittees a report on the impact of past democracy and gov-
ernance programming in the occupied Palestinian terri-
tories. 
(g) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated not less than $20,000,000 for each of 
the fiscal years 2022 through 2027 to carry out this 
section. 
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under 
paragraph (1) for a fiscal year are authorized to re-
main available for 5 fiscal years. 
SEC. 8. AMENDMENT TO THE ANTI-TERRORISM ACT OF 
1987. 
(a) FINDING.—Congress finds that according to the 
2020 State Department Country Reports on Human 
Rights Practices, the Palestinian Authority continues to 
‘‘make payments to Palestinians connected to terrorism, 
including persons convicted of terrorism in Israeli courts 
serving prison sentences, former prisoners, and the fami-
lies of those who died committing terrorist attacks’’. 
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tant to the national security interests of the United 
States or the conduct of diplomacy. 
‘‘(2) PERIOD
OF
APPLICATION.—Any waiver 
issued pursuant to this subsection shall be effective 
for not more than a period of 6 months at a time. 
‘‘(c) TERMINATION.—The provisions of this title shall 
cease to have effect on the earlier of— 
‘‘(1) the date on which— 
‘‘(A) the President has certified in writing 
to the President pro tempore of the Senate and 
the Speaker of the House of Representatives 
that the Palestine Liberation Organization— 
‘‘(i) is not objecting to any convening 
of the Trilateral Anti-Incitement Com-
mittee; and 
‘‘(ii) is not obstructing security co-
ordination and cooperation between the 
Palestinian Authority and Israel; and 
‘‘(B) the Secretary of State has issued the 
certification specified in section 1004(a) of the 
Taylor Force Act (22 U.S.C. 2378c–1); or 
‘‘(2) the date on which the President has cer-
tified in writing to the President pro tempore of the 
Senate and the Speaker of the House of Representa-
tives that the Palestine Liberation Organization, its 
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agents, or constituent groups thereof no longer prac-
tice or support terrorist actions anywhere in the 
world.’’. 
SEC. 9. AMENDMENTS TO FOREIGN ASSISTANCE ACT OF 
1961. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the administration should work urgently to im-
plement the Nita M. Lowey Middle East Partnership for 
Peace Act (Public Law 116–260), which authorized 
$250,000,000 over 5 years to fund Palestinian economic 
development and people-to-people initiatives that connect 
Israelis and Palestinians. 
(b) IN GENERAL.—The Foreign Assistance Act of 
1961 is amended— 
(1) 
in 
section 
105(c)(2) 
(22 
U.S.C. 
2151c(c)(2))— 
(A) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(F) in the case of programs and activities 
for Israelis and Palestinians, allow for shared 
educational opportunities between such Israelis 
and such Palestinians.’’; and 
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(2) in section 535 (22 U.S.C. 2346d)— 
(A) in subsection (b), by adding at the end 
before the period the following: ‘‘, including or-
ganizations that seek to foster connections be-
tween Israelis and Palestinians’’; and 
(B) in subsection (c), by inserting after 
‘‘dialogue’’ the following: ‘‘, shared educational 
opportunities and youth activities’’. 
(c) EFFECTIVE DATE.—The amendments made sub-
section (b)(2) take effect on the date of the enactment 
of this Act and apply with respect to funding for projects 
described in section 535 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2346d), as amended by subsection (b), 
provided on or after such date of enactment. 
SEC. 10. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs and 
the Committee on Appropriations of the House 
of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate. 
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(2) OCCUPIED
PALESTINIAN
TERRITORIES.— 
The term ‘‘occupied Palestinian territories’’ means 
the West Bank, including East Jerusalem, and 
Gaza. 
Æ 
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