The sanctions cover the far-right group Lehava, already listed by Britain, and two founding members of Tsav 9, a campaign group that blocked aid from reaching Gaza.
The measures also target outposts, suggesting the Biden administration is prepared to take at least some steps to confront Israel's creeping land grab on the West Bank.
One of the outposts targeted was set up by a regional council, implying that branches of the Israeli state are no longer off limits when it comes to sanctions.
"It appears that they've not just targeted extremist settlers but have introduced a linkage to territoriality by citing illegal outposts," said Aaron David Miller, a former state department Middle East negotiator turned senior fellow at the Carnegie Endowment for International Peace.
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