Israeli Government Cuts Nearly Half a Billion Shekels from Arab Community Development Plan to Fund Crime Fighting

The Israeli government approved a cut of 497 million shekels from the 550 Tikadom plan, which is aimed at the socio-economic development of the Arab community. The funds are being redirected primarily to the Shin Bet and police to combat crime within the Arab sector. Originally, the proposed cut was 568 million shekels, but the approved amount was reduced by 71 million shekels. Of the reallocated funds, approximately 364.5 million shekels will go to the Shin Bet and 132.4 million shekels to the police for establishing a national unit dedicated to fighting crime in the Arab community.

Prime Minister Benjamin Netanyahu described the Shin Bet's involvement in fighting crime in the Arab sector as a "dramatic breakthrough and a significant step in the war against crime organizations." National Security Minister Itamar Ben-Gvir noted that the previous Shin Bet chief resisted this involvement, but the current chief, David Zini, supports it. The 550 Tikadom plan, initiated by the government for 2022-2026, originally allocated 32.5 billion shekels for Arab community development. After excluding funds for Druze, Bedouin, and crime fighting, 24.5 billion remained, which was further reduced to 23 billion after broad cuts.

Since Golan's appointment as Minister for Social Equality in January 2024, she has pushed for cuts to the plan, including transferring 2.6 billion shekels to the Ministry of National Security by late 2025. This move raised concerns as it followed an investigation against her for alleged bribery and fraud. Despite her efforts, only 160 million shekels were transferred in 2025, with an additional 60 million in 2026. This year, she attempted to transfer 1.4 billion shekels, but opposition from government ministries and acting Prime Minister's Office Director Drorit Steinmetz halted the cuts.

Ben-Gvir and Golan revived the initiative through Government Secretary Yossi Fox, and last week Ben-Gvir announced the 568 million shekel transfer to the Shin Bet for crime fighting. The funds included allocations from the Labor Ministry (92 million shekels for employment centers and vocational training), Culture and Sports Ministry (57 million shekels for sports centers known for crime prevention), the Arab Economic Development Authority (10 million shekels), and the Economy Ministry (60 million shekels for industrial zones). The actual cut was 71 million shekels less than planned, but it is unclear which areas were spared. The funding for Ryan centers, which ended on June 30, is currently exhausted, risking the immediate dismissal of 250 employees if further cuts occur.

The Association for Civil Rights in Israel has called on the government to halt the cuts, labeling them illegal and harmful to equality efforts. They argue there is no justification for funding crime fighting by reducing equality-promoting programs and that the Shin Bet lacks legal authority for civilian criminal enforcement, threatening rule of law and fundamental rights. Ofer Dagan, co-CEO of the Sikkuy-Opok Association, warned the decision could fuel crime growth and urged the Finance Committee to reject most of the cuts. The Mossawa Center pledged to use legal and public measures to ensure the redirected funds are returned to reduce discrimination against the Arab community.