Israeli Finance Minister Smotrich Launches $460 Million Aid Plan for High-Tech and Export Sectors

In response to the rapid appreciation of the Israeli shekel in recent months, Finance Minister Bezalel Smotrich and senior officials unveiled a comprehensive aid package totaling approximately 1.6 billion shekels (around $460 million) aimed at strengthening Israel's export and high-tech industries. The plan was developed by a special task force within the Finance Ministry in collaboration with the Innovation Authority, following weeks of consultations with the Manufacturers Association, startups, multinational companies, and investment funds.

The immediate measures allocate about one billion shekels to a fast-track support program for startups and growth-stage companies, providing grants matched by the government to extend their operational runway, sustain growth, and maintain activity within Israel. Additionally, an interministerial committee will conduct an in-depth review of the global competitiveness of the high-tech sector and consider structural reforms ahead of the 2027 state budget.

Complementing previous initiatives such as the Pillar 2 legislation, expanded R&D tax credits, the 580 million shekel "Initiative" fund, and a national AI program worth 3 billion shekels, the new plan also dedicates 175 million shekels to industrial automation and advanced manufacturing equipment grants. Another 25 million shekels will support exporters through expanded Export Institute activities and pilot market breakthrough grants. The program includes 10 million shekels for professional training linked to high-productivity jobs and extends accelerated depreciation benefits for export-oriented industrial companies, estimated at 360 million shekels.

Minister Smotrich emphasized the urgency of the response, stating, "We reacted quickly to developments and are launching an immediate 1.6 billion shekel aid plan for export sectors. I expect the Bank of Israel to also rise to the challenge. I have long believed that a sharp interest rate cut is the solution to boost the economy. Israel is in an economic boom, and those who invest here will earn substantial returns."

Budget Department head Mehran Prozner highlighted the challenges posed by the shekel's appreciation and currency fluctuations, noting the plan aims to provide immediate relief while investing in long-term competitiveness. Chief economist Dr. Shmuel Abramzon pointed out the difficulties faced by startups that raised foreign capital, saying the plan offers breathing room but does not replace the need for efficiency and renewal. Innovation Authority CEO Dror Bin stressed the importance of the high-tech sector, which accounts for 18.3% of GDP and 58% of exports, and announced rapid funding channels for startups and medium-sized growth companies. Manufacturers Association President Avraham Novogratzky thanked the Finance Ministry for its swift engagement and described the plan as a key component of a multi-year strategy to secure the economy's competitiveness.