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Israel’s cabinet is expected to approve a plan to fund the establishment of 61 new settlements in the occupied West Bank, a move that could significantly expand settlement activity in the territory.

In a post on X, Axios reporter Barak Ravid said the proposal is based on a draft government decision that would allocate more than USD 350 million over several years to support the development of settlements that have already been authorised but are yet to be fully established.

The funding would cover temporary residential compounds, public buildings and infrastructure even before formal planning procedures are completed. If approved, the proposal would rank among the most significant settlement expansion initiatives undertaken by Israel in recent decades.

The plan is being advanced by Israeli Finance Minister Bezalel Smotrich. According to the report, the government is seeking to secure approval before any potential vote to dissolve the Knesset and trigger early elections, which could make large-scale budget allocations more difficult.

According to Ravid, many of the proposed settlements are located in strategically sensitive areas, including the Jordan Valley and the South Hebron Hills. The initiative also seeks to strengthen territorial links between existing settlements, a development critics say could further reduce the prospects of a future Palestinian state.

Under the proposal, the government would finance temporary settlement sites featuring mobile homes, public facilities and community infrastructure. Funding would also be directed towards roads, utilities and other essential services required for permanent settlements planned for the future.

Ravid reported that the proposal follows a government decision approved last week that reportedly allocated around USD 35 million for planning and regulatory work related to the same settlements.

The latest initiative would move beyond the planning stage and into implementation, allowing construction and infrastructure work to begin while statutory approval procedures remain under way.

The move forms part of a broader Israeli effort to strengthen its presence in Area C of the West Bank and accelerate settlement expansion. It also follows a series of cabinet decisions over the past year authorising dozens of new settlements, marking one of the largest waves of settlement approvals in recent years