Government Eases Oversight on Billions in Coalition Funds
A new government decision from December 2025 allows coalition funds to be transferred to the permanent budget base, bypassing annual professional review and reporting requirements. This "Green Track," championed by Finance Minister Bezalel Smotrich, enables the advancement of recurring allocations without renewed examination. Consequently, reporting to the Finance Committee has been simplified to the general budget program level, rather than the more detailed budgetary regulation.
This move significantly increases the funds allocated to Haredi (ultra-Orthodox) educational networks, with their budgets for 2025 projected to rise by approximately one billion shekels compared to initial plans. Similarly, Haredi yeshiva budgets have seen an increase of about 1.6 billion shekels through coalition funds, effectively circumventing a Supreme Court ruling on conscription. The current coalition has substantially expanded the use of coalition funds, even amidst a severe war and soaring government expenses and debt, while simultaneously weakening Knesset oversight.
Coalition funds, defined as allocations from political negotiations, are subject to specific legal directives including reporting and professional review. However, a March report by the Israel Democracy Institute (IDI) details two administrative changes that weaken parliamentary control. The first integrates coalition funds into the permanent budget, exempting them from special oversight, while the second allows their advancement based on outdated legal opinions, a mechanism termed the "Green Track."
The "historical continuity" principle allows budget items present for ten consecutive years to be reclassified into the permanent budget, thus avoiding the special oversight applied to coalition funds. The IDI report criticizes this, stating it "perpetuates budgetary transfers resulting from ongoing political power dynamics under the guise of permanent professional government policy." The "Green Track" allows reliance on old legal opinions even when circumstances have changed, leading to a blurring of significant changes and reduced detail in reporting to the Knesset.
The IDI report highlights that the Haredi education network budgets have grown disproportionately, exceeding demographic increases. The 1.6 billion shekel allocation to Haredi yeshivas is particularly scrutinized, with concerns it attempts to bypass the Supreme Court's ruling against funding institutions with students evading military conscription. The "Green Track" facilitates continued funding without new legal reviews that would reveal violations of the ruling.
The report also notes the continued subsidization of Haredi female teacher training despite a severe oversupply of qualified individuals, serving family business interests over labor market needs. Additionally, funding for at-risk Haredi youth is fragmented and lacks sufficient oversight, with some programs acting as "political execution arms employing thousands of kollel students."
