On August 18, 2026, the Ministry of Housing published and opened for bidding a new tender for 1,234 housing units in E1, east of East Jerusalem. The bidding period closes on October 19, 2026, one week before the Israeli elections on October 27.
The 1,234 units are part of the 3,401 housing units planned for E1.
For decades, Israeli governments have refrained from building in E1 due to concerns about its impact on the prospects for a two-state peace agreement. This action is a political decision, even as the plan remains subject to an active legal challenge.
Peace Now: “This is a last-minute maneuver that is part of the scorched-earth policy the government is pursuing at the end of its term to secure long years of conflict and bloodshed for Israel. Building in E1 will ruin the possibility of reaching an end to the conflict and a peace arrangement based on two states. The government is trying to sign contracts with contractors before the elections so that it will be much harder for the next government to cancel the construction.”
The new tender published today is for the construction of 1,234 units, representing about a third of the 3,401 units approved for the E1 project. Rather than opening the existing tender (No 460/2025) from January, which covers the entire approved number of housing units, the State has issued a new, separate tender for only part of the total and opened it immediately for bidding. This move appears intentionally designed to allow the tender to open and close before the election in Israel.
The Legal Context
Ir Amim, Bimkom, and Peace Now, together with Bedouin-Palestinian residents, filed a petition against the plan (No. 4388-10-25) in the Jerusalem District Court. Attorney Michael Sfard represents the petitioners.
On June 15, 2026, the Court rejected the State’s motion to dismiss the petition and ordered it to file a detailed response by September 1, 2026.
About a month ago, the State Attorney’s Office informed the petitioners that the tender was expected to open within two or three months and reiterated its commitment to provide advance notice.
However, today a new and separate tender for 1,234 of the planned 3,401 housing units was published and opened for bidding. Petitioners were not given advance notice and learned of the tender via the Israel Land Authority website.
The implications
The new tender accounts for about one third of the housing units approved for E1. Its closing date of October 19 is one week before the Israeli elections.
Watch Hagit Ofran explaining how E1 will sabotage the chances of a Palestinian state.
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