Major Jewish groups from across the political spectrum had lobbied furiously against the measure, including the liberal-leaning pro-Israel groups Americans for Peace Now and J Street. The American Jewish Committee, a public policy group, said the proposal demonized Israel and threatened Christian-Jewish relations.

The Israel Palestine Mission Network, a pro-Palestinian Presbyterian group, said they were "disappointed," but said they will continue their efforts to "alleviate the suffering of Palestinians and to help bring peace and justice to Israelis and Palestinians alike."

The vote would have given pro-Palestinian advocates a notable victory at a time when the divestment movement appears to be gaining momentum. Pension funds in Norway and Sweden have divested themselves of holdings in some firms involved in building in settlements or helping to erect Israel's contentious West Bank separation barrier. European activists have stepped up pressure on companies by exposing their West Bank ties and picketing stores that sell goods produced in Israeli settlements.