Israels Record Budget to Fund Expanding Settlements in the West Bank

April 2, 2026 • Al Jazeera

Israels Record Budget to Fund Expanding Settlements in the West Bank

Israeli Lawmakers Approve Largest Budget in Nation’s History

A budget of $271 billion was approved by Israeli lawmakers on Monday from a fortified bunker. The spending bill includes significant allocations for defense, with a record $45.8 billion dedicated to military spending. However, the fine print of the budget reveals a substantial increase in funding for projects related to settlement expansion and national security.

The Ministry of Settlement and National Missions will receive 400 million shekels ($129.5 million), which is expected to support the establishment of new settlements and outposts on Palestinian land. The allocation is part of a broader strategy aimed at entrenching the occupation and empowering far-right elements within Prime Minister Benjamin Netanyahu’s government.

Finance Minister Bezalel Smotrich, who is also a settler himself, has been granted administrative powers over the occupied territory. He has stated his opposition to any form of two-state solution, citing biblical entitlement to the land of the West Bank.

The budget has been criticized by analysts and experts, who argue that it will fundamentally alter the occupied West Bank. Abdel Hakim al-Qarala, a professor of political science, notes that the Israeli government is using the “Iranian threat” as a strategic smokescreen to push through this budget.

Ihab Jabareen, a researcher specializing in Israeli affairs, describes the budget as an “engineering of sovereignty,” with funds allocated for projects such as building new bypass roads, providing official protection for settlement outposts, and incorporating armed settlers into the state’s civilian security apparatus. The budget comes amid a backdrop of surging violence by settlers and Israeli armed forces’ raids on Palestinian communities across the West Bank.

According to UN data, settlers have attacked Palestinians nearly 3,000 times over the past two years, while Israeli settlement expansions have reached their highest level since 2017.

Source: Al Jazeera