Smotrich Party Exploits Funding Loophole for Millions

The Religious Zionism party, led by Finance Minister Bezalel Smotrich, has registered a separate party named "One Future - A Good Future for Israel" to receive additional state funding. This maneuver, revealed during the submission of lists to the Central Elections Committee, allows the party to exploit a loophole in the law governing party financing.

Under the current law, parties receive state funding not only based on the number of Knesset members they have but also through a fixed "funding unit" granted to each registered legal entity. When multiple parties run together under a single ballot but function as one faction in the Knesset, the law treats them as separate entities for ongoing funding purposes. This means assigning even a single Knesset member to a separate "shelf party" can generate approximately 98,000 shekels (about $26,000) per month, totaling around 1.2 million shekels ($315,000) annually, in addition to election budget benefits.

For the voter, this distinction is invisible; they see the same list and candidates. However, from the state budget's perspective, a new entity is created, channeling additional funds to the united faction. This tactic has been used previously, notably by the Otzma Yehudit party, where Minister Yitzhak Wasserlauf and MK Yitzhak Kroizer were registered under a separate party.

While the law was originally intended to support small, independent parties, the political system has adapted it into a method for increasing coalition budgets at the public's expense.