Disgusting, but not new.
The Bush administration said that recognition is a presidential matter, and congress has no authority to intervene. The judge who wrote it is a Bush appointee. I think this is more a division of powers dispute than an anti-Israel dispute.
Although there’s not much doubt where Obama stands on Israel.
They DO allow passports to say “Jerusalem” as the place of birth, so at least nobody is forced to say that they were born in Palestine.
From friends: Jews born in Jerusalem before Israel’s independence in 1948 who have become American citizens list POB as Jerusalem Palestine on their US Passports. Jews born before the Treaty of Paris when Jerusalem was part of the Ottoman empire who became American citizens listed their place of birth as Jerusalem (only). Perhaps suggesting that it was only under British occupation, that “Palestine” became known as a State.