Likud Finance Chair Delays Gaza Envelope Rehabilitation Funds to Allocate Grants in Northern Israel

With the Likud primaries scheduled for August 4, Knesset Finance Committee Chair Hanoch Milwitsky is urgently seeking to allocate approximately 500 million shekels in grants to businesses in northern Israel. To fund this, he is delaying over one billion shekels earmarked for the rehabilitation of Gaza Envelope communities, leveraging his authority to withhold these budgets. Local officials in the Gaza Envelope expressed surprise at the delay, as the funds had already been approved and were intended to pay suppliers.

Milwitsky has openly stated in private conversations that if funds are not released to the "Tenufa" administration responsible for northern rehabilitation, he will block funds for the "Tekuma" administration managing southern rehabilitation. He justified his actions by saying, "These are the tools I have," and emphasized his intent to use all legal powers to compel the administrations to fulfill their roles.

During a Finance Committee meeting, Milwitsky called on the Treasury to compensate northern businesses for prolonged harm, citing issues like uncertainty and protection rackets. He criticized the rehabilitation administration for inaction, noting billions allocated for northern projects in 2026 remain unused. Milwitsky stressed the need to provide immediate financial relief to northern businesses to sustain them and restore their confidence in state support.

Milwitsky also criticized Tekuma CEO Aviad Friedman, accusing him of avoiding transparency regarding budget utilization and failing to provide necessary reports. The "Atid LaOtef" movement condemned the delay, warning that linking northern rehabilitation funding to the approval of the northern rehabilitation plan jeopardizes the Gaza Envelope's recovery. They stressed that rehabilitation funds for the Gaza Envelope should not be used as a bargaining chip and highlighted the damage the delay causes to residents returning to their homes.

Milwitsky responded that since the Simchat Torah massacre, northern businesses have faced severe challenges and require grants similar to those given during the COVID-19 pandemic, which previously helped stabilize and grow the economy. He urged the responsible administrations to take initiative and provide the needed support without excuses.