Financial & Investment

Israel to allocate $338 million to expand West Bank settlements

The Israeli anti-settlement group 'Peace Now' has stated that Israel is expected to approve an allocation of one billion shekels (about $337.8 million) for new settlement construction on Thursday.

AAdmin
June 11, 2026
2 min read
Israel to allocate $338 million to expand West Bank settlements

The Israeli anti-settlement group 'Peace Now' stated that Israel is expected to approve an allocation of one billion shekels (approximately $337.8 million) for new settlements and their infrastructure in the occupied West Bank on Thursday, according to reports by Reuters.

This plan is being promoted by Israel's far-right Finance Minister, Bezalel Smotrich, a supporter of expanding Israeli settlements, who stated he wants to bury the idea of a Palestinian state.

According to the agenda of the security cabinet led by Benjamin Netanyahu, ministers are expected to discuss the establishment of temporary sites that have already been approved in the West Bank.

The agenda did not specify whether the ministers would approve new funding.

According to 'Peace Now,' the funding is earmarked for roads and water, where approximately 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem.

Israel annexed East Jerusalem in 1980, a move not recognized by the majority of countries, but it has not formally extended its sovereignty over the West Bank. United Nations bodies and most countries deem the West Bank settlements illegal, citing international agreements.

In a statement, 'Peace Now' said the vote by the security cabinet would bypass the usual planning process for settlements. They added that Netanyahu's government has approved the relevant settlements over the past three years.

Both 'Peace Now' and Axios news outlet, citing a draft resolution, indicated that the funding allocation would include infrastructure such as access roads, land preparation, sewage systems, water connections, related works, and temporary residential complexes. A spokesperson for Smotrich did not provide specific details but stated that the cabinet's vote would reinforce the Israeli settlements, noting that these are not new settlements but existing sites. Smotrich announced last week a significant expansion of more than 2,000 housing units in three Jewish settlements in the West Bank.

Palestinians and many nations view the settlements as a major obstacle to peace, claiming they consume land in the West Bank that could form a potential Palestinian state.

The expansion of settlements and small settlement outposts in recent years has coincided with a rise in violence from Israeli settlers, as settlers launch attacks on Palestinians, sometimes resulting in casualties.