Childcare Subsidy Cut for Haredi Families Reaches Israel's High Court

An Israeli organization, "Emet LeYaakov BeYisrael," along with "Tzedek U'Mishpat," has filed a petition with the High Court of Justice challenging a new condition for subsidized daycare and "family centers" (small, home-based childcare facilities). The condition, implemented by Labor Ministry Director General Robi Shemesh, aims to disqualify Haredi children from subsidized care. The petitioners argue that the ministry is withholding subsidies from families where both parents work and meet employment and income requirements, solely based on the father's military status.

The petition, filed by attorney Revital Dagan, seeks an urgent interim order to halt the implementation of the new rule until a ruling is made. The core of the challenge lies in Appendix 9 of the support criteria for the 2026-2027 academic year. This appendix states that a family is ineligible for subsidies if a parent has been declared a "draft dodger" by the IDF, received an order under Section 12 of the Security Service Law, or has been classified as an "absentee from recruitment." This condition applies even to families where both parents are employed.

The petitioners emphasize that their cases do not involve fathers seeking subsidies based on yeshiva studies. Instead, they assert that the fathers are actively working, and the mothers require childcare to continue their employment. They contend that denying subsidies based on a father's military status unfairly impacts the mother and child, neither of whom are subject to conscription. One petitioner, a mother of two, reported being told to pay approximately NIS 6,000 monthly for childcare after her request was denied, a sum exceeding her salary, forcing her to resign. Another petitioner, a "family center" operator in Modi'in Illit, stated that three families canceled their children's enrollment due to the subsidy cut, resulting in an estimated monthly income loss of NIS 13,000.

The petition also highlights the cases of two toddlers with special needs. One requires rehabilitative and developmental care in a recognized facility, while the other has a life-threatening allergy and is approved for a dedicated medical aide in a recognized daycare. Without subsidies, their families may struggle to afford the necessary care. The petitioners calculate that a family earning approximately NIS 8,400 monthly with two children in daycare could face monthly costs of nearly NIS 6,000 without subsidies, potentially leading mothers to reduce work hours or remove children from supervised settings.

Furthermore, the petitioners argue that the ministry's implementation of the rule is overly broad, citing a previous High Court ruling by Justice Solberg that prompted the Labor Ministry to consider military status as a condition for subsidies. They claim the ministry has applied the disqualification too widely, even to those who received an order under Section 12 before their scheduled enlistment date. The petition questions whether the appendix aligns with the prior High Court decision. The timing of the appendix's publication, August 26th, shortly before the September 1st academic year start, is also criticized, as families and "family center" operators had already made commitments.

The petitioners are requesting a transitional order, individual hearings before subsidy denial, and exceptions for children with medical and developmental needs. Alternatively, they seek to reduce the subsidy level rather than eliminate it entirely. They also request the return of subsidies to affected families on an interim basis. "It is inconceivable that the State of Israel would use infants, working mothers, and "family center" operators as indirect leverage, exacting a heavy financial and emotional toll for actions beyond their control," stated the petitioners. "Denying subsidies to a woman who legally supports her household and pushing her out of the job market is contrary to law, common sense, and the original purpose of encouraging employment."