Here's How 3,400 New Israeli Homes Will Stop a Palestinian State
The decision, finalized today (Wednesday), after overcoming objections from left-wing and anti-Israel groups, marks a significant step toward establishing a new Israeli neighborhood in a strategically vital region, effectively dismantling prospects for a contiguous Palestinian state.

Israel’s Civil Administration has approved plans to build approximately 3,400 housing units in the contentious E1 area of Judea and Samaria, paving the way for a public tender by the Israel Land Authority (ILA).
The E1 area, spanning 12 square kilometers between Jerusalem and Ma’ale Adumim, has long been a flashpoint due to its strategic location, which bisects Judea and Samaria and prevents territorial continuity for a potential Palestinian state. The approval follows decades of unfulfilled promises to develop the area. The ILA has begun field surveys and planning to issue a public tender for contractors, with construction expected to commence once awarded. The Settlement Administration’s endorsement of the project signals Israel’s intent to cement its presence in the heart of Judea and Samaria, a move hailed by supporters as a victory for Jewish sovereignty but decried by critics as a death knell for the two-state solution.
The decision also includes plans for 342 housing units and public infrastructure in the new settlement of Asael, recognized by Finance Minister Bezalel Smotrich in February 2023. This parallel approval point to the government’s broader push to expand settlements, despite international condemnation.
The E1 approval lands amid a political storm. Netanyahu’s hesitation to advance a sovereignty bill, as reported by Channel 14, has drawn criticism from settlement leaders and coalition partners, who see the E1 move as a de facto assertion of sovereignty. Smotrich, a staunch advocate for annexation, is driving the initiative, putting Netanyahu in a bind: embrace “creeping sovereignty” through construction or seize the moment to formalize full control over Judea and Samaria. With only two cabinet meetings scheduled before his September 24 trip to the UN, on September 7 and 14, the window for a historic decision is narrowing.
Globally, the E1 plan has faced fierce opposition. Left-wing groups, Palestinian activists, and international actors, including Rabbis for Human Rights, filed objections, arguing it violates international law and undermines peace prospects. The UN and EU have repeatedly condemned settlement expansion, with a pivotal UN debate looming in late September.
The E1 project, long stalled by diplomatic constraints, represents a bold assertion of Israel’s territorial ambitions. By connecting Jerusalem to Ma’ale Adumim, it strengthens Israel’s hold on Judea and Samaria's core, but critics warn it risks escalating tensions with Palestinians, who see it as a deliberate barrier to statehood.
Netanyahu’s coalition faces internal strain, with ultra-Orthodox parties opposing budget cuts tied to the $473 million Gaza aid package and hard-right allies demanding aggressive annexation. Smotrich’s push for E1 construction challenges Netanyahu to either lead the sovereignty charge or risk being outmaneuvered by his own minister. As the UN deadline approaches, will Netanyahu seize this historic moment, or let it slip away?