Netanyahu Seeks Budget Boost for IDF, Lapid Demands Cuts to Haredi Funding

Opposition leader Yair Lapid met with Prime Minister Benjamin Netanyahu for a security briefing on Monday, during which Netanyahu requested support for increasing the defense budget. Lapid, according to his office, agreed in principle to bolstering the Israel Defense Forces (IDF) but conditioned his support on canceling "corrupt coalition funds" and billions allocated to the Haredi (ultra-Orthodox) community, which he characterized as funding tax evasion. Lapid suggested these funds could instead be redirected to defense.

The Likud party responded by accusing Lapid of misleading the public and making baseless claims about the defense budget. They asserted that state revenues have exceeded expectations due to the government's economic policies, allowing for an increased defense budget without tax hikes. The party also denied the existence of significant coalition funds or allocations to the Haredi sector on the scale Lapid suggested, accusing him of prioritizing "cheap political considerations" over national security.

Lapid's engagement followed months of warnings from the IDF about a severe budget crisis. Reports from late June indicated the IDF was struggling with its existing budget, reducing reserve duty call-ups and curtailing certain operations due to costs. The defense establishment had been demanding an increase from 144 billion to 183 billion shekels, with some parts of the army reportedly paralyzed. Discussions on the matter were repeatedly canceled.

In recent weeks, the situation intensified, with IDF Planning Directorate head Maj. Gen. Eyal Zamir publicly stating "the till is empty" and describing the budget struggle as another front for the defense establishment, this time against the Ministry of Finance. Senior defense officials warned that the army was at a critical juncture threatening operational readiness, with promised budgets dissolving and major procurement deals expiring. One official described the Treasury's Budget Division as applying "complete brakes," painting a grim picture of the IDF's long-term readiness. Despite the Prime Minister and Finance Minister agreeing to an increase to 183 billion shekels, a planned government discussion was canceled, and necessary documents were not circulated.

The budget shortfall has impacted various areas, including the repair of tanks and a significant shortage of hundreds of Humvee vehicles destroyed in combat. The lack of a clear budget horizon also jeopardizes future acquisitions, as U.S. production of certain Humvee configurations is expected to cease. Local defense industries are also nearing the end of production lines for ground munitions, and companies like Elbit and Rafael cannot be expected to finance the defense system themselves. The crisis has also affected the air force, exemplified by the collapse of a deal for Apache attack helicopters, deemed essential for border defense and ongoing combat operations. Senior officials stated that the political echelon imposed a budget of 111 billion shekels instead of the requested 143 billion, and reduced reserve duty days, creating a significant gap exacerbated by ongoing security challenges.