Netivot City Hall Sues Government Over Disputed Reconstruction Funds

The municipality of Netivot has filed a petition with the High Court of Justice, demanding the government implement a decision to allocate approximately 1.8 billion shekels for the rehabilitation and development of 25 communities severely impacted by the October 7th attacks. The city argues that the way government ministries are implementing the decision significantly reduces Netivot's share of the reconstruction funds, with some approved budgets not being transferred at all.

Netivot, located about 8 kilometers from the Gaza border fence, was not included in the "Resilience Zone" which covers areas within 7 kilometers. Despite this, the city claims it suffered significant damage during the war, including hundreds of rocket impacts, casualties, and numerous destruction sites. This led to a previous petition in February 2024, after which the state developed additional aid for communities outside the Resilience Zone.

A government assessment identified 25 communities, in addition to the 47 within the Resilience Zone, as having suffered "exceptional overall damage" but not receiving government support. In August 2025, Government Decision 3303 was approved, earmarking the 1.8 billion shekels for these 25 communities between 2025 and 2029. The initial petition was withdrawn following this decision, and the state was ordered to pay costs.

The current petition highlights a disparity in fund allocation, with Netivot and Ofakim residents being fully included in the plan, while only some communities within the Eshkol, Sha'ar HaNegev, Sdot Negev, and Merhavim regional councils are included. Netivot, with approximately 61,000 residents, represents about half the population of the included communities but claims to receive only a quarter of the budget in some categories.

Specific examples cited include a 4 million shekel annual budget for public institution renovations, where Netivot, based on Ministry of the Negev and Galilee criteria for municipalities over 10,000 residents, is eligible for only up to 1 million shekels, the same amount as Ofakim despite its larger population. The city contends that a national budget model for routine local government funding, established before the reconstruction decision, was applied instead of tailored criteria. Similar issues are raised regarding a 10 million shekel allocation for security technology and a 21 million shekel welfare budget, where implementation delays and funding approvals have hindered access to funds.

The city's legal representatives stated that the petition does not seek to establish new policy but to ensure the implementation of the existing government decision aligns with its purpose, arguing that the current application of criteria distorts the intended outcome of the reconstruction plan.