Jerusalem has been claimed by Israel since 1950, but Palestinians have also claimed the city as their capital.
The bill was introduced on Friday, just a few days before peace talks between Israel and the Palestinians were set to resume peace talks in Washington. These are the first negotiations between the two sides in three years.
Back in June, members of the caucus argued that the United States needs to recognize Jerusalem as Israel's capital in light of the historic U.S.-Israel relationship.
"We strongly believe that Jerusalem should be recognized as the capital of Israel with no waivers and no caveats," Lamborn said then.
Under a 1995 law, the U.S. has the authority to recognize Jerusalem as belonging to Israel, but that law includes a waiver that has been used to avoid that determination.
The new bill joins a handful of others that have been introduced on this issue. Earlier in the year, members of the House and Senate proposed a bill requiring the U.S. to recognize Jerusalem as the capital and move the U.S. embassy, and Rep. Jason Chaffetz (R-Utah) has proposed similar legislation on his own.