Israel’s government approved $434 million in funding for 34 new settlements in the occupied West Bank, marking a significant escalation in its settlement expansion efforts, according to multiple reports. The move, backed by Finance Minister Bezalel Smotrich, faces international condemnation as illegal under global law.
Israel’s security cabinet approved a $434 million budget to establish 34 new settlements in the occupied West Bank, a decision that underscores the country’s continued expansion of Jewish communities in territory widely viewed as central to a future Palestinian state. The funding, announced by Finance Minister Bezalel Smotrich, includes 1.3 billion shekels for infrastructure, roads, and construction, according to Reuters and Middle East Eye. The move has drawn sharp criticism from Palestinian authorities and international bodies, which classify Israeli settlements as illegal under international law.
Funding Breakdown and Settlement Expansion
The allocation, first reported by Reuters, includes 1.3 billion shekels ($434 million) for new settlements, with additional funds directed toward road construction and infrastructure. Smotrich, who has long opposed Palestinian statehood, stated the decision was “historic” and
Smotrich said it was a day of celebration for Israel and the settlements.
The settlements, approved by the security cabinet in June, were kept under wraps due to concerns about the U.S. response, according to Middle East Eye. The government also re-established the evacuated settlement of Sa-Nur in the northern West Bank, a move described by Smotrich as
Smotrich called it the cornerstone of the settlement revolution.
Settlement Minister Orit Strook called the decision
Strook called it the greatest Zionist-settlement move since the establishment of the state.
citing the expansion of infrastructure and the construction of 12,000 homes in existing settlements.
International and Domestic Reactions
The decision has intensified tensions, with Palestinian media reporting over 11,000 settler attacks against Palestinians in the West Bank this year. The United Nations and most countries view Israeli settlements as illegal, a stance Israel disputes, claiming the West Bank is a disputed territory
where Jews have lived for thousands of years. Smotrich framed the move as a security measure, stating it would
Smotrich said it would kill the idea of establishing a terrorist state in the heart of the country.
Peace Now, an Israeli anti-settlement watchdog, condemned the funding as
Peace Now condemned the funding as a fire sale of the State of Israel.
arguing it prioritizes a narrow settler sector
over broader national interests. The group warned the expansion could lead to diplomatic and security consequences. Meanwhile, the Samaria Regional Council, which signed an 8.5bn shekel ($2.5bn) infrastructure agreement with the government, called the funding a “milestone” in consolidating Israeli control over the West Bank.
Legal and Historical Context
Israeli settlements in the West Bank are considered illegal under international law, a position upheld by the International Court of Justice. The latest expansion brings the total number of settlements authorized under Prime Minister Benjamin Netanyahu’s government to 104 since 2022, according to Middle East Eye. The outposts now control over 1.1 million dunams of land—around 18% of the occupied West Bank—displacing 118 Palestinian communities, according to a Peace Now report.
Smotrich’s office emphasized the funding’s security-strategic
purpose, framing it as a response to
Smotrich’s office described it as a terrible idea of establishing a terror state.
However, Palestinian officials and human rights organizations argue the settlements undermine peace prospects and deepen divisions. The move also coincides with a rise in settler violence, with over 700,000 Israeli settlers living among 2.7 million Palestinians in the West Bank and East Jerusalem.
Next Steps and Uncertainties
The government plans to begin construction of the new settlements this coming summer,
Smotrich said, with funding for roads and infrastructure already approved. However, the U.S. and European Union have historically opposed such expansions, raising questions about potential diplomatic fallout. Meanwhile, the international community remains divided, with many nations urging Israel to halt settlement activity as a prerequisite for peace negotiations.
The decision reflects the ongoing polarization in Israeli politics, with Smotrich’s Religious Zionism party positioning itself as a key driver of the settlement agenda. As the October election approaches, the funding could further entrench territorial divisions, leaving the future of the Israeli-Palestinian conflict in limbo. For now, the $434 million allocation stands as a tangible symbol of Israel’s commitment to expanding its presence in the West Bank, despite widespread opposition.
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