A case before the court challenges the President's authority over this aspect of foreign policy:
Ever since the creation of the state of Israel in 1948, the U.S.
government has declined to recognize Jerusalem as part of any country.
Palestinians have long claimed the city as their own, and so have
Israelis.
The U.S. State Department has long
viewed the city's status as one of the key items to be negotiated in a
Middle East peace deal. Consequently, the U.S. has avoided even
seemingly minor actions that might undermine its role in the peace
negotiations by implying any endorsement of Israeli or Arab sovereignty
over the city.
Israel's supporters in
Congress, however, have long objected to the U.S. policy, and have
sought, through legislation, to force U.S. recognition of Jerusalem as
Israel's capital. In 2002, Congress enacted a law urging the president
to move the U.S. Embassy from Tel Aviv to Jerusalem, and requiring the
State Department to allow American citizens born in Jerusalem to list
their place of birth as Israel on passport documents.
The case is Zivotofsky v. Clinton.
- From Scotusblog: Argument recap: Who controls foreign policy?