Major Lawsuit Filed Against Childcare Subsidy Cuts

On the second day of the intermediate days of Sukkot, two organizations, 'Tzedek u'Mishpat' and 'Emmet leYaakov beYisrael,' filed an unprecedented, nearly thousand-page petition with the Supreme Court against recent changes to childcare subsidies. The petition demands an urgent interim order to freeze 'Appendix 9,' which retroactively disqualifies thousands of families from receiving subsidies and severely impacts daycare centers and toddlers.

The new subsidy criteria, published by the Ministry of Labor in late August, stipulate that parents classified as draft dodgers or absentees will lose eligibility for their children's subsidies. The Ministry can demand repayment of previously received subsidies if a parent is found non-compliant, based on information from government agencies or the IDF.

The petitioners argue that this constitutes collective punishment, penalizing families who meet employment and income requirements through indirect sanctions. They also claim the measure exceeds existing legal provisions, applying sanctions broadly before judicial decisions are finalized and before deadlines for compliance have passed. The organizations contend that the changes unfairly harm daycare operators and critically affect toddlers needing medical and rehabilitative care.

Furthermore, the petition labels the process an 'administrative hijacking,' citing the criteria's publication after the school year began, without transition rules, a right to a hearing, or consideration of professional warnings within government ministries. This lawsuit follows previous legal battles over daycare subsidies, including a Knesset bill by MK Moshe Gafni that sought to consider only the mother's employment or study status for daycare priority and cost participation.

The organization 'Tzedek u'Mishpat' previously succeeded in a case concerning subsidized housing, protecting the rights of thousands of families. They express hope for a similar outcome in this case. The petition arrives amid a severe crisis in the daycare system, with reports of significant funding cuts affecting daycare operators during salary payment periods.