Israel moves forward with long-stalled e1 housing project

August 15, 2025 by Pesach Benson
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Finance Minister Bezalel Smotrich announced that he will approve tenders for more than 3,000 housing units in the long-stalled E1 project between Jerusalem and Ma’ale Adumim, declaring the move a “revolution.”

Looking at E1 from Ma’ale Adumim, with the outskirts of Jerusalem in the background on Aug. 14, 2025. Photo by Yoav Dudkevitch/TPS-IL

Meanwhile, a former Israeli diplomat and expert in international law told The Press Service of Israel that, despite claims that the move undermines the possible territorial contiguity of a future Palestinian state, the new homes do not violate peace agreements or international law.

“Today, anyone in the world who tries to recognize a Palestinian state will receive an answer from us on the ground,” Smotrich said at a press conference in Ma’ale Adumim on Thursday. “Today, we are writing a historic chapter in the story of the redemption of the people of Israel in their land.”

Smotrich also serves as a minister in the Defence Ministry with oversight of civilian affairs in Judea and Samaria. The move, if carried out, would mark the first time the E1 project has advanced past decades of freezes.

Nevertheless, the World Jewish Congress has slammed the move.

City council member Shiran Mirzai told TPS-IL, “This is great news for Ma’ale Adumim, especially since it is a necessary Zionist step that ensures Israeli territorial continuity and presents clear facts against any attempt to separate Ma’ale Adumim from Jerusalem. The E1 plan will provide housing for young couples and families, strengthen the local economy, and secure the future of Ma’ale Adumim.

“It is our right to continue building in the Land of Israel, and it is also our duty,” she added.

Moshiko, a business owner and Ma’ale Adumim resident, told TPS-IL, “Those who oppose the E1 don’t care how young couples should buy their own apartments and live their lives, I guess. And to lower apartment prices, you have to build outside the so-called Green Line and in large quantities. There is plenty of land that can be inhabited, and, first, as an Israeli government, you have to take care of the citizens of the State of Israel.”

The 11.6-square-kilometre E1 zone lies within the municipal boundaries of Ma’ale Adumim and is classified as Area C, under full Israeli administrative and security control. The project has been frozen for decades due to intense international opposition.

At the same time, Ma’ale Adumim’s “Tzippor Midbar” neighbourhood will add another 3,515 housing units. The combined 6,916 new housing units will double the city’s population and bring in about 35,000 new residents in the coming years, Smotrich said. Over 36,000 people currently live in the city, just northwest of Jerusalem.

Ma’ale Adumim Mayor Guy Yifrach said the new neighbourhood would counter what he called a Palestinian “chokehold” through “illegal construction.”

Roy, an engineering teacher who lives in Ma’ale Adumim, told TPS-IL, “Of course, as a resident, I support the idea to expand and develop. There is a shortage of construction areas in the country, you know.”

He added, “And also, speaking of the Palestinian Authority claiming the territory for itself — what will we do if all the Jewish residents are sent into exile? We will let the people who are actively seeking to destroy us, attack us, and erase our identity and heritage take our place here.”

Legal Grounds Support Development

Alan Baker, Israel’s former Ambassador to Canada and now head of the Global Law Forum at the Jerusalem Centre for Security and Foreign Affairs, told TPS-IL that both Israel and the Palestinians have competing aspirations for the land, but because E1 is located in Area C, Israel is within its rights.

Baker was involved with the drafting of the Oslo Accords, which were signed in 1993.

“I mean, according to the Oslo Accords, that area is part of Area C, which is under Israeli jurisdiction. So Israel has the right, both legally and according to the agreements with the Palestinians — which were also approved internationally — of course, as long as the construction plan is in accordance with the law. This is not about building on privately owned land, but rather on public land,” Baker explained.

The Oslo Accords divided Judea and Samaria into three administrative areas. Area A, mostly Palestinian cities, is fully governed by the Palestinian Authority (PA) in both administration and security. In Area B, which includes smaller Palestinian towns, the PA handles civil administration while Israel controls security. Area C, encompassing Israeli communities, military sites, and nature reserves, is under full Israeli administrative and security control.

The E1 area is also known as Mevaseret Adumim. In January, Yifrach renamed it T1 in honour of U.S. President Donald Trump.

The E1 corridor lies amid several significant archaeological and heritage sites. Sections of the ancient Jerusalem–Jericho road, a route mentioned in the Bible and dotted with ruins from the Byzantine, Crusader, and Ottoman periods, can be found in E1 and adjacent areas. Other nearby heritage sites — not within Ma’ale Adumim’s boundaries — include the Inn of the Good Samaritan, now a national park and museum showcasing ancient synagogue mosaics alongside Christian and Samaritan art; the Monastery of Martyrius, a large Byzantine complex with intricate mosaics; and the Monastery of Euthymius.

Israel Ganz, chairman of the Yesha Council, an umbrella organisation for Jewish communities in Judea and Samaria, said, “We are on a historic morning that brings us another step towards the vision of sovereignty. The equation has changed, and we are changing reality with the hands of yet another house and yet another community. We are exercising our historical right to the land of our ancestors.”

Community leaders have expressed hope that U.S. President Donald Trump will revisit the issue of sovereignty, aligning his previous peace plans with provisions for applying Israeli law to Area C.

However, the president of the World Jewish Congress, Ronald S. Lauder, said: “The incisive calls from Finance Minister Bezalel Smotrich to ‘bury the idea of a Palestinian state’ are wholly unbecoming of a representative of the state of Israel.

Smotrich and his partner, National Security Minister Itamar Ben Gvir, have repeatedly made statements that massively damage Israel as well as the security of the Jewish people. It has to stop.

These men do not represent the sentiments of the vast majority of Jews worldwide, who rightfully view these two as extremists not fit to serve in public office.

I call upon the prime minister to clarify that these views are not shared by him or his administration.”

 

 

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