Israeli Ministers Clash Over Haredi Funding and Arab Sector Cuts

At the "Israel Chooses Industry 2026" conference hosted by the Manufacturers Association, Israeli officials engaged in a heated debate over public funding, particularly concerning the Haredi (ultra-Orthodox) community and the Arab sector. Finance Minister Bezalel Smotrich defended government subsidies for Haredi families, citing the community's high birthrate as a value that warrants state support, even when it exceeds tax contributions. He presented a worldview where values supersede pure mathematics, contrasting the average Haredi family's monthly state support of 7,000 shekels more than its tax payments with the average "Zionist" family's net contribution. Smotrich also criticized agricultural cartels for price gouging, using his own experience as a father of seven buying expensive grapes as an example.

Member of Knesset Yaakov Asher, representing the United Torah Judaism party, countered claims of Haredi dependency, arguing that the state erects barriers to employment for the community by demanding academic degrees and experience. He urged the government to adapt its criteria to the population rather than forcing the population to conform. Asher also stated that the Haredi community would not compromise on its values, particularly regarding core curriculum studies, and that support for yeshiva students should be viewed as aid for the unemployed.

Member of Knesset Ahmad Tibi protested a government decision to allocate approximately 1.03 billion shekels for classified defense procurement by cutting funds from a five-year plan for the development of the Arab community. He argued that this was a symptom of skewed priorities and that the Arab sector suffers from ongoing neglect. Despite ideological differences, Tibi announced his party's support for a state commission of inquiry into the October 7th events, emphasizing the need to investigate the failures that led to the attack. He unequivocally called the events a "massacre" and stated that harming civilians is an act of terror, regardless of the perpetrator.

The conference also featured appearances by former Prime Minister Naftali Bennett, Gadi Eisenkot, Itamar Ben-Gvir, and Benny Gantz, with discussions focusing on industrial competitiveness, the labor crisis, and the economic impact of the war.