Israel allocates initial funds for West Bank settlement expansion amid international sanctions

The Israeli government has allocated an initial tranche of 152 million shekels ($51 million) to prepare construction plans for 69 settlements and outposts in the occupied West Bank. According to the anti-settlement NGO Peace Now, this funding is intended to facilitate infrastructure and public building projects across the territory. The allocation represents the first portion of an expected total investment that could reach $388 million, with a separate proposal for 1 billion shekels ($338 million) currently under review.

A larger proposal to allocate 1 billion shekels for settlement expansion has been postponed by the cabinet and referred to the Security Cabinet, which is expected to convene on Sunday to decide on the matter. If approved, this larger package would constitute one of the most significant expansions of settlements in recent decades. Peace Now reported that the government intends to proceed with construction despite necessary planning protocols not being carried out in accordance with Israeli law, effectively bypassing standard regulatory frameworks.

The move has drawn sharp criticism from international bodies and non-governmental organisations. Amnesty International published a report on Wednesday accusing the Israeli government of playing a central role in what it describes as the ethnic cleansing of Palestinians in the occupied West Bank. The group condemned the upcoming “Great Israeli Real Estate Event” in London, which promotes property sales in the occupied territories and has previously been held in the United States and Canada.

International pressure has intensified, with the United Kingdom, Australia, New Zealand, Canada, France, and Norway recently imposing sanctions on networks involved in financing or enabling settler violence. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) data indicates that at least 117 West Bank villages have faced complete or partial displacement due to settler attacks. The UN and Amnesty International have both condemned the expansion and the associated violence.

Peace Now stated that the current Israeli government has approved 103 settlements since taking office in December 2022, with 51 being entirely new settlements. In a statement, the group argued that the October 7 attacks demonstrated the failure of the right-wing approach to conflict management. The organisation urged for a political solution, warning that the current trajectory of expansion and settlement approval risks prolonging violent conflict.