For 30 Years, E1 Was a Red Line. Now Netanyahu Is Crossing It
Noam Shelef — August 24, 2026
Views and positions expressed here are those of the writer, and do not necessarily represent NJN's views and policy positions.
Israel’s current government is having a “YOLO Moment.” With elections approaching and the most extremist government in the country’s history facing a limited time in office, its leaders are racing to lock in as much of their agenda as possible.
That’s why NJN has been watching E1 so closely. No settlement plan poses a greater threat to the possibility of a Palestinian state in the West Bank.
Earlier this summer we had good news: The Israeli government postponed its plans to begin accepting bids for construction in E1, as NJN mobilized vocal Congressional opposition, and as Peace Now challenged the plan in court.
Last week, we got the bad news: the Israeli Ministry of Housing opened bidding for 1,234 housing units in E1.
The deadline is October 19 – just eight days before Israel’s October 27 election. That timing matters. If developers are selected before the election, the current government can leave signed construction contracts as a fait accompli for its successor.
Here’s what you need to know about what’s happening in E1 and what it means for the future:
Why is E1 so dangerous?
E1 threatens the viability of a Palestinian state by severing Palestinian territorial contiguity in the West Bank. Building the settlement would create Israeli territorial contiguity between Jerusalem and Ma’ale Adumim, effectively dividing Palestinian territory in the West Bank into northern and southern halves and cutting both off from East Jerusalem.
It would also make an East Jerusalem capital for a future Palestinian state far more difficult to envision. During the Oslo years, the Palestinian Authority planned its parliament in Abu Dis, just east of Jerusalem’s municipal boundary. Construction began in 1996 but was abandoned in 2003. E1 would make the kind of territorial connection that plan envisioned even harder to achieve.
E1 would also reroute Palestinian traffic between northern and southern parts of the West Bank onto a single road, called a “Sovereignty Road” by supporters and an “Apartheid Road” by opponents.
This road would also effectively seal off the E1 area – about 3% of the West Bank – from Palestinian access and cause irreparable damage to Palestinian Bedouin communities like Khan al-Ahmar.
What is the status of the E1 tenders?
As reported by Peace Now, the Israeli Ministry of Housing opened the process on August 18 to accept bids for construction of 1,234 housing units in E1. The bidding period closes on October 19, 2026, one week before the Israeli elections on October 27.
This tender is for only a part of the construction that we are anticipating. In January of this year, 3,401 housing units were approved for construction in E1, and tenders were originally slated to open on June 1st. Facing international pressure and legal challenges, the Israeli government blew past that timeline, and in July their lawyers committed to an Israeli court that they would not start the process before notifying plaintiffs in a case (including Peace Now). That led observers to say that the bidding process would likely be several months out.
In addition to the housing units, the existing Israeli plans include the development of a business and industrial complex. The tenders for the development of that area had been expected in June, but have also yet to be published.
Why now?
The E1 construction plan was originally proposed in 1994. The plan included 3,426 homes in two neighborhoods north of the settlement of Ma’ale Adumim. Successive administrations delayed the plan due to pressure from the international community: E1 has been an enduring red line for every US administration since Clinton. But in 2025, the Israeli government approved a plan for 3,401 housing units in E1, in a move Finance Minister Bezalel Smotrich stated, “buries the idea of a Palestinian state.”
Why does the October 19 deadline matter?
Because it could transform E1 from a government plan into a contractual commitment.
Once bidders are selected, developers, banks and other financial institutions will have legal rights and financial incentives tied to construction. A future Israeli government could still cancel those contracts, but doing so would carry financial, legal and political costs. Stopping E1 before contracts are signed is much easier.
What is being done to stop E1?
Peace Now and its partners are challenging the plan in court. As part of that litigation, the state committed to giving the petitioners advance notice before opening any tender, so Peace Now could ask the court to halt the process.
The government violated that commitment last week. Even more remarkably, the State Attorney’s Office told the court that it had been blindsided by the decision to publish the tender.
Peace Now has therefore asked the court to suspend the bidding process while it considers the violation.
Global pressure is also very significant. A Congressional letter, spearheaded by Representatives Mark Pocan (D-WI) and Jan Schakowsky (D-IL) this summer urged the US Administration to use “every available diplomatic tool to halt the advancement of settlement construction in the E1 area of the West Bank.” NJN supported this letter.
France, Germany, Italy, and the United Kingdom issued a joint statement Thursday calling the publication of E1 tenders “unacceptable.” The statement called on the Israeli government to immediately retract its construction plans, and suggested that developers might face “legal and reputational consequences” if they take part in E1’s construction. If European sanctions extend to banks and other financial institutions implicated in E1, developers might have trouble financing this work.
The window to stop E1 is still open – but it is closing quickly. The court can halt the tender. The Israeli government can withdraw it. And the United States and the international community can make clear that E1 carries consequences. That is why NJN and our partners will continue pushing on all three fronts until this destructive plan is stopped.
Noam Shelef is New Jewish Narrative’s Vice President of Communications. His career began nearly 30 years ago as an intern for Americans for Peace Now. Since then, Noam has worked to support progressive change in Israel as a lobbyist, an organizer, and a communications leader.
