President Trump Formally Recognizes Jerusalem as Israel's Capital The president took a controversial step forward when it came to peace relations in the Middle East, officially recognizing Jerusalem as the capital of Israel. We are not taking a position of any final status issues including the specific boundaries of Israeli sovereignty in Jerusalem or the resolution of contested borders,Those questions are up to the parties involved." He also announced plans to relocate the U.S. Embassy from Tel Aviv to Jerusalem ordering the State Department to "begin preparations" for the move. However, senior officials told CNN that Trump will sign a waiver yet again to keep the embassy in Tel Aviv as it could take years before a new one opens in Jerusalem. The President's decision is an important step towards peace, for there is no peace that doesn't include Jerusalem as the capital of the State of Israel.