This bill, titled the Ceasefire Compliance Act of 2026, aims to restrict the use of United States-origin defense articles by Israel in the West Bank and Gaza. It establishes conditions tied to Israel's adherence to the October 10, 2025, ceasefire agreement with Hamas and a broader 20-point plan for regional peace and stability. The legislation seeks to ensure that U.S. military aid aligns with U.S. foreign policy objectives, including humanitarian concerns and the prospects for a two-state solution.

The bill requires the Secretary of State to submit quarterly reports certifying Israel's compliance with various conditions. These include not violating the ceasefire, engaging constructively in negotiations for the 20-point plan, and ensuring unimpeded humanitarian aid to Gaza. Further conditions mandate no forced displacement of civilians, no permanent occupation or annexation of Gaza, withdrawal of Israeli Defense Forces to agreed lines, and cooperation on establishing a temporary transitional Palestinian government. Additionally, Israel must commit to no de facto or de jure annexation of the West Bank and take material steps to prevent settler violence against Palestinians.

If the Secretary of State's certification concludes that Israel is violating any of these conditions, the United States will prohibit the sale, export, or transfer of any new U.S.-origin defense articles to Israel for use in the West Bank or Gaza. Furthermore, an agreement must be established with Israel to prevent the use of previously provided defense articles in these territories. An end-use monitoring group will be established to continuously track whether U.S.-origin defense articles are being used in the West Bank or Gaza, submitting bimonthly reports to Congress.

Should the monitoring group report that Israel is using U.S.-origin defense articles in the West Bank or Gaza, a further prohibition on all sales, exports, or transfers of such articles to Israel will take effect. The President may waive this specific prohibition if it is deemed vital to U.S. national security, requiring a detailed certification to Congress 15 days prior. However, the bill explicitly states that nothing in it prevents the U.S. from defending itself or its personnel, sharing intelligence, or assisting Israel with defensive measures against external threats, including providing material for missile defense systems like Iron Dome.

The legislation also includes rules of construction regarding a "Board of Peace," limiting U.S. funding for its administrative costs unless explicitly authorized by Congress and ensuring it does not supersede the United Nations' role. It clarifies that the bill does not limit humanitarian assistance or other aid for Gaza. The authorities granted by this Act are set to terminate five years after its enactment.