Israeli Government Approves Tens of Millions in Funding for Ultra-Orthodox Sector Amid West Bank Tax Benefits
As Israel's political system intensifies its election campaign, the government is accelerating financial allocations to its political base. On Sunday, the Cabinet Committee on Legislation is set to approve a transfer of 55.3 million shekels to the ultra-Orthodox sector and religious institutions. This funding is divided into three main parts: 30.89 million shekels from the education budget for Torah institutions and yeshivas, 20.79 million shekels allocated to the Authority for the Development of the Ultra-Orthodox Sector, and 3.62 million shekels for exempt institutions and Talmud Torah schools.
Coalition leader MK Vladimir Beliak noted that the transfer to the social-economic development authority for the ultra-Orthodox is new coalition money that lacked prior legal approval and was held in reserve until a recent legal opinion authorized it just before the Knesset's dissolution. This financial move follows a significant tax benefit enacted over the weekend for settlers in 64 West Bank communities, granting a 7% tax reduction retroactive to January 2026. This benefit, championed by Finance Minister Bezalel Smotrich, MK Tzvi Sukkot, and the Yesha Council, aims to rectify what they describe as decades of political discrimination against these communities despite security threats.
Smotrich urged settlers to promptly obtain residency certificates from local authorities to start receiving the tax benefits in upcoming paychecks. Concurrently, the Knesset Finance Committee has approved 31 budget reallocations totaling billions of shekels for 2026, including substantial funds for religious education: 30.8 million shekels for Torah institutions, 53.2 million for religious education administration, 3.6 million for exempt institutions, and 455.6 million for settlement education administration, alongside additional sums for independent education and Jewish culture.
These developments highlight the government's strategic financial support for both the ultra-Orthodox sector and West Bank settlers ahead of elections, reflecting ongoing political priorities and alliances.
