Israeli Public Committee Raises Election Funding Costs by 33 Million Shekels

The public committee responsible for determining party election funding in Israel has decided to increase the total election financing cost by 33 million shekels. This decision, made last week, includes raising the election funding unit per Knesset member from 1.638 million shekels to 1.835 million shekels, which the Knesset Accountant estimates will cost approximately 25.5 million shekels. Additionally, the fixed funding unit per party list will rise from 1.835 million shekels to 2.569 million shekels, adding 734,000 shekels per list. For joint lists like United Torah Judaism, which comprises Agudat Yisrael and Degel HaTorah, the total amount of 2.569 million shekels will be divided among the factions, with an estimated budget impact of 5.7 million shekels.

The committee also decided to advance the payment schedules and advances for party debts and election funding. The advance payment for each incumbent party will increase from 1 million shekels in the last elections to 1.468 million shekels in the upcoming elections, calculated based on the number of current Knesset members. The advance will rise from 70% to 80% of the funding unit per member and will be deducted from the total election funding after results are published. Parties will receive these advances upon submitting their lists to the Central Elections Committee in mid-September.

These changes respond to parties' claims that previous advance rates complicated their campaign operations, as delayed payments affected staff and suppliers. The committee, chaired by retired Judge Dr. Ron Shapira and including Prof. David Haan and Elad Malka, also recommended freezing party loan repayments from early July until mid-September, when advances are paid. Current party debts total 41 million shekels, and loans from the Knesset will be limited to 36 months.

New parties, such as those led by Naftali Bennett and Gadi Eizenkot, will benefit from eased loan conditions. Previously, new parties could receive up to 10 million shekels in advances only 45 days before elections with a bank guarantee. Now, they can obtain loans up to 18.35 million shekels with a bank guarantee, including a 3.67 million shekel loan upon notifying the Knesset Accountant of their candidacy, before submitting their official list. Failure to submit a list will result in immediate forfeiture of the guarantee.