Israeli Settlements and National Service Face Collapse Over Frozen Funds
The head of the Settlement Division, Hoshaya Harari, warned the Israeli government that freezing coalition funds allocated for peripheral communities could lead to their collapse. In a letter, Harari stated that these funds are critical for "deep treatments" in struggling and new settlements, providing not only financial support but also professional staff and infrastructure development. He cautioned that without immediate renewal, the halt in funding would result in immediate layoffs of professionals, cessation of absorption processes, and severe damage to physical and community infrastructure.
Harari cited specific examples of settlements at risk, including Neve Eitan in the Jordan Valley, where a community manager will be fired and building support halted. Ramat Trump will see the dismissal of its CEO, education coordinator, construction project manager, and absorption coordinator, with many public buildings no longer being constructed. Kibbutz Samar in the Arava, undergoing economic recovery, faces immediate layoffs of hired professionals, and the settlement of Ir Ovot near Hazeva will suffer from damaged infrastructure. Other southern settlements like Chiran, Tsohar, and Peduim are also at risk of collapse or severe damage.
Simultaneously, CEOs of organizations managing the National Civil Service warned that the freezing of funds by the High Court of Justice would halt the service of 4,000 volunteers immediately after the Sukkot holiday. They highlighted that a NIS 74 million budget for educational positions for the 2026-2027 school year had been approved by the government and the finance committee, enabling 4,000 volunteers to serve in educational institutions. The freezing of this budget means these volunteers will not be able to return to their service and will not receive their stipends for September 2026.
According to data from the Ministry of Settlement and National Missions, over NIS 100 million approved for the Settlement Division's activities in the Galilee, Golan, Negev, and Judea and Samaria, as well as for "Jewish Identity" activities, are currently frozen by the High Court. The crisis stems from settlements and organizations having already spent funds based on the coalition funds' grants, now facing a financial deficit due to the freeze. The High Court issued an order on August 24th, demanding explanations from the Knesset Speaker, Finance Committee Chairman, and the Ministry of Finance regarding why NIS 409 million in coalition funds, approved on August 4th, should not be canceled.
