Knesset panel approves metropolitan transit reform after years of delays

After three decades of delays and more than a year of political postponement, the Knesset Economics Committee on Tuesday approved for second and third readings a bill to establish metropolitan transport authorities. The measure, which is expected to go to a plenary vote next, is being described as the most significant reform to improve public transportation in Israel.

The plan is meant to reduce the Transportation Ministry’s central control and hand more authority to local governments. Today, any change to a bus route, stop, or traffic light requires ministry approval, creating bureaucracy, delays, and transit planning that often does not match riders’ needs. Under the new model, local authorities would manage these decisions themselves, with the government saying cities know residents’ needs better and can respond accordingly.

During the committee debates, Finance Ministry representatives said congestion costs the economy 40 billion shekels a year. Agreement was reached to create metropolitan authorities in the three largest urban areas, Haifa, Jerusalem, and Gush Dan, which includes Tel Aviv. The main dispute was over who would lead the Gush Dan authority.

A compromise with the Transportation Ministry settled the issue: Idan Moalem, head of the public transportation authority, will lead the metropolitan authority for 18 months, after which local-government elections will be held for a five-year term. It was also agreed that voting power on the authority council will be based on the share of bus lanes within each local authority, to encourage more dedicated transit lanes and priority for public transport over private cars. The law still needs plenary approval, and the Finance and Transportation Ministries are hoping disputes with ultra-Orthodox parties over claims that the authorities will run public transport on Shabbat will not derail it, even though they say that is not within the authorities’ power. Lobby 99, which pushed the bill forward, welcomed the decision and said it would continue following the legislation until it becomes law.