Each sovereign nation, under international law and custom, may designate its own capital.
Since 1950, the city of Jerusalem has been the capital of the State of Israel.
The city of Jerusalem is the seat of Israel's President, Parliament, and Supreme Court, and the site of numerous government ministries and social and cultural institutions.
The city of Jerusalem is the spiritual center of Judaism, and is also considered a holy city by the members of other religious faiths.
From 1948-1967, Jerusalem was a divided city and Israeli citizens of all faiths as well as Jewish citizens of all states were denied access to holy sites in the area controlled by Jordan.
In 1967, the city of Jerusalem was reunited during the conflict known as the Six Day War.
Since 1967, Jerusalem has been a united city administered by Israel, and persons of all religious faiths have been guaranteed full access to holy sites within the city.
This year  marks the 28th consecutive year that Jerusalem has been administered as a unified city in which the rights of all faiths have been respected and protected.
In 1990, the congress unanimously adopted Senate Concurrent Resolution 106, which declares that the Congress ‘‘strongly believes that Jerusalem must remain an undivided city in which the rights of every ethnic and religious group are protected’’.
In 1992, the US Senate & House of Reps unanimously adopted Senate Concurrent Res 113 of the One 102nd Congress to commemorate the 25th anniversary of the reunification of Jerusalem, and reaffirming congressional sentiment that Jerusalem must remain an undivided city.
The September 13, 1993, Declaration of Principles on Interim Self-Government Arrangements lays out a timetable for the resolution of ‘‘final status’’ issues, including Jerusalem.
The agreement on the Gaza strip and Jericho Area was signed May 4, 1994, beginning the five-year transitional period laid out in the Declaration of Principles.
In March of 1995, 93 members of the United States Senate signed a letter to Secretary of State Warren Christopher encouraging ‘‘planning to begin now’’ for relocation of the United States Embassy to the City of Jerusalem.
In June of 1993, 257 members of The United States House of Representatives signed a letter to the Secretary of State Warren Christopher stating that the relocation of the United states Embassy to Jerusalem ‘‘should take place no later than . . . 1999’’.
The United States maintains its embassy in the functioning capital of every country except in the case of our democratic friend and strategic ally, the State of Israel.
The United States conducts official meetings and other business in the city of Jerusalem in de facto recognition of its status as the capital of Israel.
In 1996, the State of Israel will celebrate the 3,000th anniversary of the Jewish presence in Jerusalem since King David's entry.
Here’s the complete Act: