The Jerusalem Embassy Act of 1995 is a public law of the United States passed by the 104th Congress on October 23, 1995. It was passed for the purposes of initiating and funding the relocation of the Embassy of the United States in Israel from Tel Aviv to Jerusalem, no later than May 31, 1999, and attempted to withhold 50 percent of the funds appropriated to the State Department specifically for "Acquisition and Maintenance of Buildings Abroad" as allocated in fiscal year 1999 until the United States Embassy in Jerusalem had officially opened. The act also called for Jerusalem to remain an undivided city and for it to be recognized as the capital of the State of Israel. Israel's declared capital is Jerusalem, but this is not internationally recognized, pending final status talks in the Israeli–Palestinian conflict. The United States has withheld recognition of the city as Israel's capital. The proposed law was adopted by the Senate (93–5), and the House (374–37).
Since passage, the law has never been implemented, because of opposition from Presidents Clinton, Bush, and Obama, who view it as a Congressional infringement on the executive branch's constitutional authority over foreign policy; they have consistently claimed the presidential waiver on national security interests.
This summary is from Wikipedia.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
10/24/1995--Passed Senate amended.
Jerusalem Embassy Act of 1995 - Declares it to be U.S. policy that: (1) Jerusalem remain an undivided city in which the rights of every ethnic religious group are protected; (2) Jerusalem be recognized as the capital of the State of Israel; and (3) the U.S. Embassy in Israel be established in Jerusalem no later than May 31, 1999. States that, subject to the President's waiver authority granted below, not more than 50 percent of the funds appropriated for FY 1999 to the Department of State for "Acquisition and Maintenance of Buildings Abroad" may be obligated in the fiscal year until the Secretary of State determines, and reports to the Congress, that the Embassy has opened. Makes specified amounts of such funds available until expended in FY 1996 and 1997 only for construction and other costs associated with relocating the U.S. Embassy Jerusalem. Requires the Secretary of State to report to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate on: (1) the Department of State's plan to implement this Act; and (2) progress made toward opening the U.S. Embassy in Jerusalem. Authorizes the President to suspend for six months (with possible subsequent six-month extensions) the 50 percent limitation on the obligation of funds with respect to the opening of the Embassy if he determines and reports to the Congress that a suspension is necessary to protect the national security interests of the United States.