This report briefly describes legislative efforts to modify U.S. policy with respect to Jerusalem, in particular multiple enactments of the passport provision. The report summarizes the appellate court's opinion finding the passport measure unconstitutional and presents brief synopses of the petitioner's argument before the Supreme Court, the Secretary of State's brief in response, and briefs of amici curiae submitted by the Senate (pursuant to S.Res. 504) and by some Members of the House of Representatives. Finally, the report concludes by suggesting some factors that may affect the outcome.

On May 14, 1948, the State of Israel declared its independence and was immediately engaged in a war with all of its neighbors. Armed conflict has marked every decade of Israel’s existence. Despite its unstable regional environment, Israel has developed a vibrant parliamentary democracy, albeit with relatively fragile governments. Prime Minister Ariel Sharon formed the current three-party coalition in January 2005 in order to secure support for his plan to withdraw from the Gaza Strip and four small settlements in the West Bank. The evacuation of the settlers was completed on August 23. Some observers are predicting an early national election in 2006.