Israel approves over $400m to fund 34 settlements in occupied West Bank

What Happened

The Israeli security cabinet approved a budget of 1.3bn shekels ($434m) to fund 34 new settlements in the occupied West Bank, according to Ynet. The decision was made in June but only announced publicly on Tuesday, following a March cabinet approval of the settlements themselves. The move brings the total number of settlements authorised under Prime Minister Benjamin Netanyahu's government to 104 since late 2022, as reported by Ynet. The cabinet also approved the re-establishment of the Sa-Nur settlement, evacuated in 2005. Finance Minister Bezalel Smotrich, who oversees civilian affairs in the West Bank, described the decision as 'the cornerstone of the settlement revolution' and said construction would begin 'this coming summer'. Settlement Minister Orit Strook called it 'the greatest Zionist-settlement move since the establishment of the state'. The announcement comes days after Netanyahu and Smotrich signed an 8.5bn shekel ($2.5bn) umbrella agreement with the Samaria Regional Council to expand infrastructure in the northern West Bank, including 18 new settlements and 12,000 homes. Peace Now, an Israeli anti-settlement watchdog, condemned the moves, saying the government is 'digging the diplomatic and security pit in which the State of Israel may end up buried'.

Key Actors

Why It Matters

The funding of 34 new settlements marks a significant acceleration of Israeli settlement expansion in the occupied West Bank, advancing de facto annexation despite settlements being illegal under international law. Combined with the $2.5bn infrastructure deal, it entrenches a territorial reality that undermines the viability of a two-state solution. The decision was initially concealed over concerns of a US response, indicating potential diplomatic fallout. This 'settlement revolution' has authorized over 100 settlements since late 2022 and has displaced 118 Palestinian communities, according to Peace Now, raising the risk of escalating violence and further isolating Israel internationally.

Watch For

Monitor the start of construction this summer, as stated by Smotrich, and any on-the-ground changes in the 34 settlement sites and Sa-Nur. Watch for reactions from the US, the EU, and Arab states now that the decision is public, as well as possible UN or International Court of Justice statements. The implementation of the $2.5bn umbrella agreement for the northern West Bank, including 18 settlements and 12,000 homes, should be tracked. Palestinian responses, including potential protests or diplomatic initiatives, may also follow.