Pressure in Key Settlement Battlegrounds
Dear Friends,

This month, Israel advanced a 2023 and 2024 state budget which allocates significant funding towards expanding and entrenching its de-facto annexation of the West Bank. This, alongside other bold and unilateral steps being taken in government and on the ground in defiance of international opposition, raises the urgency of meaningful and immediate intervention in key battleground areas including Homesh, Givat Hamatos, Atarot, and others in order to safeguard the viability of the two-state solution. Meanwhile, the combined efforts of local civil society and the international community proved their effectiveness twice this month, preventing harmful decisions including a damaging NGO taxation bill and the demolition of Khan al-Ahmar and highlighting the potential for future impact in other areas. 

The Two State Index drops -0.3% from 5.04 to 5.03 this month. Scroll through the headlines below for in-depth analysis on how developments this month impacted the feasibility of the two-state solution.



May at a Glance:

  • Israel Passes State Budget Financing De-Facto Annexation of West Bank: Analysts say 'hidden budgets' in other ministries will likely increase total funding to settlements

  • Battles Over Key West Bank Sites Hold Future of Two-State Solution At Stake – and Far-Right Israeli Ministers Know It: Outcomes of developments in Khan al-Ahmar vs. Homesh show Israel will continue entrenching settlement wherever they don't face significant and united opposition

  • Shelving of NGO Taxation Bill Highlights Effectiveness of Civil Society, Diplomatic Pressure: Though legislation is likely to be re-submitted in a different form, strong international pressure sets precedent for future areas of intervention

  • Hamas Sits Out Again In Latest Israel-Gaza Fighting, But Without Additional Steps The Next Round Is Assured: Israel must consider how to cultivate understandings to continue influencing where and when Hamas chooses to engage in conflict
  • Jerusalem Day Flag March Normalizes Far-Right Israeli Racism, Highlights Emboldened Ultranationalist Sentiments: Some 50,000 take part in provocative display of Jewish supremacy in disputed city at center of the conflict. 

These events decreased the Two State Index by -0.3% in May (down 0.01 points from 5.04 to 5.03)