They are HEAVILY subsidized by the Israeli state. If you’re a settler, it’s literally a tax break. Smotrich (financial minister) continuously advocates for more funding.

Ben Gvir made it his policy to arm the settlers by allowing “municipal police” to get military grade weapons. Also compulsory service means that many settlers are already armed and trained with military grade equipment.

Coupled with the retaliatory measure by the Israeli government against anyone who, through litigation, tried to block the settlements - they are fully supported by the state.