The Bush administration’s approach to the Israeli-Palestinian conflict was marked by unprecedented criticism of Israel’s settlement policies and a shift in US diplomatic tone. Secretary of State James Baker’s 1989 AIPAC speech, urging Israel to ‘lay aside … the unrealistic vision of a Greater Israel’, signaled a turning point in US-Israel relations. The speech drew a mixed reaction from American Jews, exposing growing divisions over Israel’s territorial policies. Some welcomed it as reaffirming longstanding US positions; others saw it as unfairly demanding Israeli concessions without matching Arab commitments. The administration’s stance intersected with broader geopolitical concerns, including Soviet Jewish immigration to Israel and US loan guarantees, complicating negotiations. This chapter explores the internal and external pressures shaping US policy during the late 1980s and early 1990s, focusing on Bush-era diplomacy, Israeli responses, and evolving dynamics within the American Jewish community. It highlights a pivotal moment in US-Israel relations and its impact on the peace process.