"Recognition is a topic on which the nation must speak with one voice. That voice must be the president's," Kennedy wrote.
The ruling ends a 12-year-old lawsuit by a Jerusalem-born American, Menachem Zivotofsky, and his U.S. citizen parents.
Justice Antonin Scalia read a summary of his dissent from the bench, saying the Constitution "divides responsibility for foreign affairs between Congress and the president." Chief Justice John Roberts and Justice Samuel Alito joined the dissent.
In a separate dissent, Roberts cast the court's decision as dangerously ground-breaking. "The court takes the perilous step — for the first time in our history — of allowing the president to defy an act of Congress in the field of foreign affairs," Roberts wrote.
Justice Clarence Thomas agreed with the outcome of the case, but on narrower grounds.
The court's consideration of the case has coincided with acute Palestinian-Israeli tension over Jerusalem and strain in Israeli-American relations highlighted by Israeli Prime Minister Benjamin Netanyahu's criticism of the U.S. role in international negotiations with Iran over its nuclear program.
For his part, President Barack Obama has said he remains unconvinced by Netanyahu's efforts to clarify statements the prime minister made during his campaign for re-election that rejected creation of a Palestinian state.
In the voting breakdown, the court's four liberals, including the three Jewish justices, joined Kennedy's opinion that sided with the administration and against the Zivotofskys.
The Associated Press
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