I’m very interested if this serves multiple purposes for the Biden administration, aimed at weakening the Likud-coalition given the ultra-orthodox/Haredi factions are the political kingmakers currently for Bibi - not just general pressure by the US against illegal settlements and sectarianism. As in, is this part of Biden administration’s approach to isolate and neuter Netanyahu, break up the coalition, and force elections? Given that the US-Israel alliance seems firm despite recent diplomatic spats.
Jumping from sanctioning civilian settlers and political individual, to sanctioning an entire battalion is big. And almost certainly means the US has firm evidence or strong suspicion about abuses and war crimes.