On January 29, Israel’s cabinet approved new “housing benefits” for “national priority areas.” The exact application of these benefits to communities in the West Bank is unclear, to me at least, but the cabinet statement says, “The decision is designed to encourage positive migration to the communities.” News reports suggest that of the 557 communities eligible for the aid, 70 are in the West Bank: “The list of qualifying settlements include major enclaves that would likely remain in Israeli hands under a peace deal. But most are located deep inside the West Bank and likely would have to be dismantled.”

And thereby hangs a tale. During the George W. Bush administration, we reached an agreement with Prime Minister Ariel Sharon to end such financial incentives for people to move to the West Bank—even to major blocs that will inevitably stay with Israel in any final status agreement. Israel agreed in part because the incentives were expensive and Sharon (and his finance minister, Benjamin Netanyahu) were trying to reduce the budget. But Israel agreed in part because this was just one element of a larger formula on settlements. Israel would build no new settlements, provide no financial incentives for people to move to settlements, and not permit settlements to expand physically—new construction would take place in already built-up areas.