Real estate9/28/2026

The Dispute Over E1 Will Test the Limits of a Caretaker Government’s Authority

Attorney General Gali Baharav-Miara froze an Israel Land Authority tender for the construction of 1,234 housing units in the E1 area near Ma'ale Adumim. The Ma'ale Adumim Municipality petitioned the High Court of Justice against the decision, and the Court will be required to determine whether the restraint rules that apply to a caretaker government also extend to the actions of professional bodies.

Key facts

•The tender: 1,234 housing units in the E1 area
•Petitioner: Ma'ale Adumim Municipality
•Court: High Court of Justice — Bagatz
•Gali Baharav-Miara ordered the freeze
•Scheduled tender opening date: September 28, 2026
•The case number is not stated in the source

What Happened

The tender was scheduled to open on September 28, 2026, with the submission of bids and the announcement of the winners planned for about a week before the elections. The government had already authorized the plans to proceed in February 2024; after objections were heard, they were approved in August 2025, and final government approval was granted in December 2025. In June 2026, the Jerusalem District of the Ministry of Construction approved the project, after which the tender documents were published on the Israel Land Authority website.

Why the Tender Was Frozen

Baharav-Miara applied the restraint and caution rules governing a caretaker government. The review considered the possibility of restricting the next government’s freedom of action, the absence of urgency, the project’s political sensitivity, the risk that election-related considerations might exert influence, and the possibility of using the tender results in election propaganda. According to the position presented in the source, these rules may apply not only to new decisions by the political echelon, but also to the implementation of previous decisions by professional bodies if that implementation creates a situation that is difficult to reverse.

The Municipality’s and Government’s Position

The Ma'ale Adumim Municipality filed an urgent petition with the High Court of Justice seeking to overturn the freeze. Cabinet Secretary Yossi Fuchs argued that the legal advisers were imposing on the Israel Land Authority’s professional employees restrictions established for the elected leadership, even though preparations for the tender began long before the elections. The source does not state the petition number and does not report a final decision by the Court.

What the Court Has Decided at This Stage

Supreme Court Justice Ofer Grosskopf ordered the Attorney General to respond by this coming Thursday to the request to suspend her decision and thereby reopen the tender. This is an interim procedural decision, not a ruling on the merits of the dispute. The proceedings will show whether the High Court of Justice will support a broad application of the restraint rules to administrative actions with long-term political and security implications.

What this means for you

For participants in land tenders, this case is significant because a process that has already been prepared may be halted during an election period, even if the original policy decision was made earlier. If the High Court of Justice supports this approach, the Attorney General will have broader options to halt non-urgent and politically sensitive actions by a caretaker government and government bodies. The source does not state the final outcome of the dispute.

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Case analysis based on court rulings