Dual Covenant Theology, sometimes called “two Covenant theology” is a theological proposition that Jews (that is, the physical lineage of Abraham) can be redeemed through adherence to the Sinaitic Covenant (sometimes called the Mosaic Covenant) and Old Testament Law, whereas Gentiles are saved by the Covenant of Grace taught in the New Testament. It teaches that there are now simultaneously two covenants for two different groups of people.
A spin-off of the Galatian Heresy, the development of this particular strand of Judaizing can be traced to Jewish sects in the 18th Century (interestingly, this did not begin as a sub-Christian doctrine, but among the Rabbinic Jews). This heresy was later adopted by the more extreme “Messianic” sects and those already prone to Judaism. Pope John Paul II and other Catholic leaders have made statements that appear to support Dual Covenant Theology as well. The late Jerry Falwell Sr., after making statements sympathetic to Dual Covenant Theology, denied holding to the heresy.
The most notable proponent of this heresy today is popular sub-christian author and teacher, John Hagee.