The sanctions, which expose people to asset freezes and travel and visa bans, come as violence against Palestinians in the West Bank has exploded since the start of the Israel-Hamas war, following the deadly terrorist attacks of October 7th.
Palestinians report verbal and physical harassment, restriction of movement, and face intimidation by settlers circling their properties on motorbikes, cars or horses and spying via drones.
The Treasury Department said Hilltop Youth has carried out killings and mass arson, while rights groups and Palestinians say the group is behind “price tag” attacks – attacks on Palestinian villages in retaliation for perceived efforts to hamper settlement construction.
The group may prove difficult to effectively sanction, as it is loosely organized and decentralized. In addition, Israel's finance minister has previously vowed to intervene on sanctioned settlers' behalf.
In the past, sanctioned settlers have told the AP that the measures have had little impact on their finances.
Hilltop Youth has already faced sanctions from the EU and UK.
The Biden administration has been criticized for imposing relatively few sanctions on Israeli extremists. According to the Office of Foreign Assets Control, 27 extremists and entities have been sanctioned by the U.S. under President Joe Biden 's February 2024 Executive Order related to maintaining West Bank stability.
The Treasury's Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith said that the U.S. “will continue to hold accountable the individuals, groups, and organizations that facilitate these hateful and destabilizing acts.”
State Department spokesman Matthew Miller said “the actions of these individuals have contributed to creating an environment where violence and instability thrive. Their actions, collectively and individually, undermine peace, security, and stability in the West Bank.”
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Associated Press writers Julia Frankel and Jack Jeffrey contributed to this report from Jerusalem.