One year after the terrorist attacks on civilians in Israel, the Biden administration is chilling American support for the Jewish homeland.
Earlier this year, President Joe Biden issued an executive order authorizing sanctions on West Bank groups and individuals. To date, several rounds of sanctions on Israelis have been imposed, cutting off those named from the U.S. financial system and blocking Americans from transactions with them. The pace of designations on Israelis has continued in recent months. These sanctions may have significant indirect effects as well, including signaling to banks and other entities that it is risky to serve anyone in contact with those sanctioned due to the strict liability nature of how sanctions operate.
Blocking sanctions, like the ones imposed on West Bank actors, are a powerful tool and have generally been applied strategically and consistently to financially handcuff hostile actors in countries like Iran, Cuba, Russia, Venezuela, North Korea and Syria. But that is not what is happening right now.
News headlines every day make clear the administration is under significant pressure to turn its back on Israel. Groups like the anti-Israel Democracy for the Arab World Now (DAWN) are actively pressuring the U.S. State Department to designate certain Israeli individuals and entities and investigate American companies for violating the sanctions.
While the executive order is “non-discriminatory” and “applies to Israelis and Palestinians alike,” almost all the designations to date have targeted Israelis, including some involving protest activity occurring in Israel. These sanctions are a clear symptom of that political pressure and are a notable nod to the “Boycott, Divestment and Sanctions” (BDS) movement targeting Israel.
Unlike most sanction regimes that are squarely aimed at dangerous threats to America, the West Bank sanctions appear to have broad and sweeping implications that far outweigh the threats they purport to address. Among those at risk are American philanthropists.
Our Constitution protects the right to freely associate and does not carve out an exception for those associating in defense of Israel. We are at a crucial time of high geopolitical risk and donors can and should have the confidence to give freely to support Israel without facing exposure to severe sanctions violations or intense government investigations.
This matters for philanthropy. Donors have the right to support Israel and its defense against the terrorist group Hamas that is threatening Israelis.
Whether or not the sanctions placed so far directly impact U.S. citizens, there is a clear threat they could. While the Biden administration has yet to offer any guidance to the philanthropic community as they aggressively implement these sanctions, it is critical for donors to have solid sanctions compliance measures in place.
Now more than ever, the philanthropic community must come together to ensure donors are free to give to the causes and communities they choose – without fear of government retaliation. The Roundtable stands ready to support our community and will continue to monitor this ongoing threat to philanthropic freedom. Through lawmaker education and communication efforts, we will highlight these risks and the chilling effect of the sanction regime on legitimate, constitutionally protected activity.
