Israeli Finance and Transportation Ministries Urge Passage of Metropolitan Transport Reform Amid Haredi Opposition

In recent days, Haredi political parties in Israel have been attempting to remove the metropolitan transportation authorities reform bill from the Knesset agenda, and it now appears they may succeed. The Finance and Transportation Ministries warn that canceling the bill would forfeit potential savings of billions of shekels, as traffic congestion currently costs the state approximately 40 billion shekels annually. The reform aims to transfer transportation management powers from the central government to regional local authorities to improve public transport planning and reduce road congestion.

The bill is linked to the repeal of the parking law, which had caused sharp increases in parking fees nationwide. If the transportation reform is removed from the agenda, the parking law repeal will also not proceed, leaving the higher parking costs in place. The reform would delegate authority over routes, fares, and enforcement to local bodies more familiar with their communities, relieving the Ministry of Transportation from micromanagement.

Haredi parties oppose the bill partly because they fear it could enable public transportation operation on Shabbat, which they argue would undermine the status quo, although the current bill text does not allow such operations. The Finance Ministry’s Budget Department and the Transportation Ministry jointly wrote to coalition chairman Ofir Katz emphasizing the urgent need to approve the bill to improve citizens’ quality of life and align Israel with developed countries.

Local government leaders, including the Chair of the Local Government Center, Haim Bibas, have also urged ministers to complete the legislation, citing the public’s burden from fragmented authority and poor coordination. Civil society organizations have joined calls to prioritize the bill’s approval before the conclusion of Knesset votes.

The parking law had mandated per-minute parking fees instead of flat hourly rates, leading to significant price hikes as parking operators sought to avoid losses. Finance Minister Bezalel Smotrich announced plans to repeal this law to restore original pricing. However, the repeal depends on the metropolitan transport reform passing, as the bills are legislatively linked to expedite the process.