Finance Minister Bezalel Smotrich approved the new E1 settlement plan near Ma’aleh Adumim, which would split east Jerusalem from the West Bank.
Standing at the site of the planned settlement on Thursday, Smotrich said Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to the revival of the E1 development.
“Those around the world who try to recognize a Palestinian state will see our response on the ground – not with documents or declarations, but with facts: homes, roads, and Jewish families building their lives here,” Smotrich said.
“They will talk about a Palestinian dream – and we will continue to build a Jewish reality,” he said. “This reality buries the idea for good – there is nothing to recognize.”
The Finance Minister called on Netanyahu to annex the West Bank. He also thanked the prime minister, along with Trump and US Ambassador to Israel Mike Huckabee, “friends of Israel like we’ve never had,” for support for the settlement.
Israel had frozen construction plans there since 2012 because of objections from the United States, European allies, and other world powers who considered the project a threat to any future peace deal with the Palestinians.
The plan calls for the construction of 3,401 new housing units in Ma’aleh Adumim, located in the West Bank.
Peace Now previously called the plan a “death blow to the two-state solution,” because it calls for effectively splitting the West Bank into two parts. This would prevent the development of a metropolitan area between Ramallah, east Jerusalem, and Bethlehem.
Although Smotrich’s announcement was made public, there has been no official confirmation regarding the approval of the plan by print time.
The Israeli publication noted that previous housing projects, which were heavily promoted at launch, have been delayed for years.
Smotrich calls plan 'final nail in the coffin' for Palestinian statehood
However, Smotrich stated that this plan would move forward, since it is the “final nail in the coffin” for the concept of a Palestinian state.
“From the Palestinian perspective and that of the international community, this is a critical area. Without it, the establishment of a Palestinian state with east Jerusalem as its capital is simply impossible,” he added.
Smotrich continued, saying that the plan had begun with the foundation of the current government.
“The approval of construction in the E1 area undermines the idea of a Palestinian state and is part of the broader steps we are taking as part of our de facto sovereignty plan, which began with the formation of this government. After decades of international pressure and freezing of projects, we are defying conventions and cementing the connection between Ma’aleh Adumim and Jerusalem,” he said.
While the plan has yet to receive formal approval, it has been met with enthusiasm in the Binyamin and Ma’aleh Adumim area. Israel Ganz, head of the Binyamin Regional Council, hailed it as “a historic achievement for the settlement movement, laying the groundwork for the eventual implementation of sovereignty.”
Ma’aleh Adumim Mayor Guy Yifrach also expressed his strong support.
“Palestinians have tried to undermine this area through illegal construction, but the creation of this new neighborhood will thwart their efforts,” he said.
The Palestinian government, allies, and campaign groups condemned the scheme, calling it illegal and saying the fragmentation of territory would rip up any internationally backed peace plans for the region.
A spokesperson for the US State Department said the US remained focused on ending the war in Gaza and ensuring Hamas would never govern that territory again.
“A stable West Bank keeps Israel secure and is in line with this administration’s goal to achieve peace in the region,” the spokesperson added.
A UN spokesperson called on Israel to reverse the decision, which they said would put an end to the prospects of a two-state solution. They added that settlements go against international law.
The Qatari Foreign Affairs Ministry called it a “blatant violation of international legitimacy,” and strongly condemned the decision.
It further rejected “the Israeli occupation’s policies aimed at expanding settlements and forcibly displacing the Palestinian people, measures intended to prevent the establishment of a Palestinian state.” It urged the international community to “compel” Israel to halt settlement expansion.
European Union foreign policy chief Kaja Kallas said on Thursday that an Israeli settlement plan is not in line with international law, and she called on Israeli authorities not to move ahead with it.
"The decision of Israeli authorities to advance the E1 settlement plan further undermines the two-state solution while being a breach of international law," Kallas said in a statement. "The EU reiterates its call on Israel to halt settlement construction," she added.
Turkey condemned Israel's settlement plan aimed at dividing the West Bank and cutting it off from East Jerusalem, the Turkish Foreign Ministry said on Thursday, adding the decision was a total violation of international law.
"This step... totally disregards international law and United Nations resolutions; targets the State of Palestine's territorial integrity, the basis for a two-state solution, and hopes for peace," it said in a statement, reiterating that the establishment of an independent Palestinian state was the only way to achieve lasting peace.
Sarah Ben-Nun contributed to this report.