Israeli Planning Committee Extension Linked to Rural Settlement Expansion Deal

The Knesset Interior Committee is set to discuss extending the mandate of the Committee for Preferred Housing Complexes (VATMAL) by one year, until August 2027. Unlike previous years, opposition from rural settlements to the committee’s activities has diminished. This shift follows an expected planning initiative by the National Planning Administration to significantly increase the population limits of rural communities, marking a departure from the existing policy that favors urban densification and limits suburban sprawl.

VATMAL, established in 2014 to accelerate approval of large housing projects, wields broad powers similar to the National Planning and Building Council, Israel’s top planning authority. Initially focused on developing state-reclaimed agricultural lands, it now also promotes urban renewal and intensive construction near transit hubs. In response to recent conflict, VATMAL is advancing housing projects to rebuild neighborhoods damaged by missile attacks, including plans for approximately 2,700 units in central Rehovot and 4,500 units in Bat Yam.

Historically, rural settlements opposed VATMAL due to its promotion of accelerated construction on agricultural land. However, this time opposition has waned following agreements between Rafi Almaliah, CEO of the Planning Administration, and Shai Hajaj, chairman of the Regional Council Center and head of the Merhavim Regional Council. They agreed to limit VATMAL to approving no more than ten agricultural land plans annually and to restrict residential land appropriation to 25% of any rural settlement’s area. The extension will be for one year only, rather than the three years initially requested by the government.

This moderation in opposition is believed to be linked to a separate, significant planning discussion scheduled for the day after the committee meeting. The National Planning Council will debate an amendment to National Outline Plan 35 (Tama 35), which would allow rural settlements to expand to up to 1,400 homes and 5,000 residents, compared to the current limit of 500 homes and 2,000 residents. Environmental groups criticize this amendment for potentially increasing suburban sprawl, infrastructure demands, private car use, and pollution, especially in central Israel.

The Tama 35 amendment was initiated by then-Interior Minister Ayelet Shaked in June 2022 and has been pending for two years. Its upcoming discussion coincides with the VATMAL extension debate. Additionally, a 2021 Knesset amendment expanded the use of acceptance committees in settlements from 400 to 700 families, facilitating controlled population growth while maintaining community character. This amendment is currently challenged in the Supreme Court by civil rights groups alleging it enables discrimination against Arab citizens.

Shai Hajaj emphasized that the VATMAL extension deal, limiting plans and land use, is fair and unrelated to the Tama 35 amendment, which he supports. Amit Yifrah, secretary-general of the Moshavim Movement, reiterated consistent opposition to VATMAL but acknowledged the current agreement reduces the number of plans and agricultural land impact. The Planning Administration noted a shift towards urban renewal projects and warned that without VATMAL’s extension, thousands of housing units in northern Israel would be stalled.