Well, that depends on how you look at it. On the one hand, Israel says that Jerusalem is its capital city. On the other hand, the Palestinians say that Jerusalem should be a part of the future Palestine. And only the USA says… well, both.
Nine years ago the American congress set a rule that recognizes Jerusalem as a part of Israel, but it didn’t stop them from writing in 9 year-old Menachem Zivotofsky’s passport that Jerusalem isn’t a part of Israel.
Usually an American passport includes the birth city and country. Menachem was born in Jerusalem. In his American passport it only says he was born in Jerusalem, and not in Israel. Now Menachem (and his parents) is taking the USA to court in order to change it to Jerusalem, Israel.
The judge in this trial said that it is about a clear declaration of the United States foreign policy. But I don’t get it. How is working according to the law has anything to do with any foreign policy?