In recent years, the Israeli government has tended to resolve complaints about blatantly illegal settler outposts built on privately owned Palestinian land by retroactively legalizing the seizure of the land. This has been virtually obligatory for the far-right government, which depends heavily on settler votes for its narrow majority.
In the case of Amona, however, settler demands don’t seem to be working, with the Israeli High Court demanded the outpost be leveled by the end of 2012. You’ll notice, of course, that it is now 2016, but officials say it’ll probably have to happen by year’s end, and the court ruling makes retroactive legalization all but impossible.
Still, placating the settlers is job one, and despite expressions of outrage by them, the Israeli Defense Ministry is working on building a new, much larger settlement in the northern West Bank, which house the Amona residents plus a bunch of new settlers.
New ground was scheduled to be broken recently, and the Defense Ministry even tried to expel some existing settlers who were already using the land where the construction is to take place, though Amona condemnations are slowing the process, with many demanding retroactive legalization, and likely to continue holding out until the government either caves or gives them large reparations on top of the new homes.