You are referring to The Jerusalem Embassy Act of 1995. It was never implemented. Legislative branch of US govt. has no constitutional authority over foreign policy. The US embassy is in Tel Aviv, as are all foreign embassies in Israel. Tel Aviv is the internationally recognized capital of Israel. Not Jerusalem. Israel is lacking any legal basis for sovereignty in Jerusalem. UN resolution 181, under which Israel declared statehood, declared Jerusalem to be an international city, "corpus separatum," managed by the UN. In 1980, the Knesset passed the "Basic Law" which declared Jerusalem, "complete and unified," the capital of Israel. The Basic Law is a violation of UNSC resolutions 476 & 478, and thus a violation of Article 49 of the 4th Geneva Convention: a war crime. UNSC 478 declared the Knesset Basic Law "null and void," and 476 declared any demographic changes in Jerusalem a violation of the Geneva Convention. Breaches of articles of the 4th Convention are considered war crimes.
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Preliminary report: Stabbing attack in Jerusalem near Damascus Gate (Haaretz)
from the article: The U.S. will no longer turn a blind eye to Israeli settlements