American citizens born in Jerusalem will now be able to list Israel as their country of birth, Secretary of State Mike Pompeo said on Thursday, shifting U.S. policy in favor of recognizing further Israeli sovereignty over the Holy City. 

Previous administrations had only allowed U.S. citizens born in Jerusalem to list the city as their country of birth, with the final status of the city expected to be decided in direct negotiations between Israelis and Palestinians as part of efforts to achieve a two-state solution. 

The policy to withhold labeling Israel on U.S. passports for citizens born in Jerusalem was challenged in a 2015 Supreme Court case, which sided with the Obama administration, at the time, and said the power to recognize sovereignty rested with the executive branch.  

Pompeo on Thursday said that the policy change does not reflect a U.S. decision on the sovereign boundaries of Jerusalem — which Palestinians hope to establish as a capital of a future state — but is a reflection of President Trump’s earlier proclamations recognizing Jerusalem as the capital of Israel.