Supreme Court Hears Arab Municipalities' Challenge Over Budget Diversion

Israel's Supreme Court heard arguments on Monday regarding a petition filed by the Union of Arab Municipalities against the government's decision to divert funds from the 'Takadum' five-year plan. The petition, submitted in December, challenges the government's intention to reallocate the budget, with the municipalities arguing that the funds were not utilized and should be returned to their original purpose to be implemented by the end of the current year. The state, however, contends that it has the authority to shift budgets between government decisions as part of its policy-making.

The petitioners allege that the budget diversion was racially motivated and emphasize the lack of utilization of the funds. They further argue that other budget reallocations announced this year have been implemented, and the government lacks the capacity to effectively use these funds for crime fighting, citing a different decision (549). The article notes that Minister for Social Equality May Golan has attempted to divert funds from decision 550 in the past two years, during which the program reportedly underperformed, unlike its strong execution in the initial two years.

This underperformance, attributed to Minister Golan, was cited as justification for redirecting funds to combat crime, involving the Ministry of National Security. Following resistance from professional staff within government ministries in 2025, a further reallocation was decided in early 2026 to fund the Shin Bet's involvement in combating crime organizations, according to claims by Minister Golan and Minister of National Security Itamar Ben-Gvir.

The petitioners seek to reverse the decision and restore the budget to decision 550, asserting that implementation is still possible by year's end. While government ministries are planning the next five-year plan, its advancement awaits the formation of a new government. During the hearing, justices questioned the necessity of diverting funds when the budget for decision 549 had not been fully utilized. State representatives requested an extension to review the matter, postponing the court's decision. "We are frustrated not by the discussion but by the fact that we have to fight with a ministry that is supposed to take care of us," stated Abd Abu Shehadeh, an advisor to the Union of Arab Municipalities, adding, "We have to fight for the implementation of the budget."