Israel Faces Massive Mental Health Crisis for Post-War Veterans
Three years after the October 7th attacks, a significant challenge looms for Israel's next government: the Ministry of Defense estimates that by 2028, the Rehabilitation Division will be treating approximately 100,000 security system veterans, with half of them suffering from mental health issues and post-traumatic stress disorder (PTSD). This projection of 50,000 individuals requiring long-term care represents not only a defense system challenge but a national economic one, impacting the state budget, the job market, and thousands of families.
Currently, the Rehabilitation Division is already managing around 87,000 injured veterans, including about 31,000 with mental health conditions and PTSD. Of those absorbed following the recent war, 25,000, or 62%, are experiencing psychological distress. The budgetary implications are substantial; by the end of 2025, the division's budget reached 8.3 billion shekels, a 53% increase, with 4.1 billion shekels dedicated to mental health services. The average annual cost of care for a war veteran is estimated at 150,000 shekels, and for tens of thousands requiring years of rehabilitation, this is a long-term budgetary commitment, not a temporary war expense.
Beyond direct costs, the indirect economic impact is considerable. A 30-year-old reservist unable to return to work represents lost income and employment years, a loss for employers, and reduced household income. Family members may also reduce their work hours to provide support, adding to healthcare, welfare, and benefit costs. The core question for future defense and finance ministers is not just the cost of rehabilitation, but the cost of inaction.
The gap between the growing need and the system's capacity is widening. Annual applications to the Rehabilitation Division have doubled from about 700,000 to 1.4 million, while staffing has increased by only 39%. Funding alone is insufficient; adequate infrastructure, including expanding "balancing homes" (respite facilities) and alternative hospitalization options, is crucial. With an anticipated 50,000 mental health cases within two years, the system cannot wait until it reaches its breaking point.
Nadav Yerushalmi, chairman of the "Combat Diamonds" forum, emphasizes the need for a multi-year plan between the Defense and Finance Ministries. This plan should shift focus from treating only those already diagnosed with combat trauma to investing in early detection, prevention, and initial treatment before conditions become chronic PTSD. This requires dedicated budgets for mental health and rehabilitation, increased staffing, expanded balancing homes, vocational rehabilitation, and long-term monitoring. The Finance Ministry must also quantify the economic cost of neglecting treatment, including lost work years, reduced family employment, hospitalizations, and benefits that early intervention could mitigate. The state must transition from a reactive system to one that proactively identifies at-risk individuals, provides support, and prevents further deterioration.
