Israeli Knesset Dissolves After Passing Key Business and Military Service Laws

The 25th Knesset dissolved early Friday morning at 5:24 AM, marking the end of its term and initiating an election recess until the 26th Knesset convenes on November 10, 2026. In its final hours, the Knesset passed several important laws, including the Credit Database Law aimed at enhancing competition in business credit markets. However, numerous bills awaiting second and third readings, such as the Metropolitan Authorities Law opposed by ultra-Orthodox parties, were left pending. There remains a possibility that the Knesset will reconvene next week to complete these readings.

The last week of the session focused heavily on legislation stemming from a deal between Prime Minister Benjamin Netanyahu and ultra-Orthodox factions. This included advancing the Basic Law on Torah Study and the law freezing the detention of draft evaders, despite a conditional injunction from the Supreme Court preventing its implementation. In exchange, laws weakening the Attorney General's powers and the Broadcasting Law proposed by Shlomo Karhi were also passed.

The Knesset approved extending mandatory military service to 32 months and enacted a reform allowing imports, exports, or sales of goods meeting U.S. federal standards as an alternative to Israeli regulations. Additionally, the temporary authorization for a committee to plan preferred zones was extended by one year. New requirements were set for tax, population, and social security authorities to send recorded voice messages to mobile phones that do not accept text messages, known as "kosher phones." Businesses will also be mandated to record customer calls for transactions exceeding 750 shekels and provide recordings upon request.

Other laws passed include the Heritage of North African Jewry and a law commemorating Golda Meir. In first readings, legislation was approved to allow public transport payments by credit card and to prohibit suspending students’ studies due to reserve military duty. During the election recess, the Knesset may be convened by government request or upon presentation of 25 MK signatures. Committees may hold discussions only with prior approval from a newly established "Agreement Committee," except for urgent meetings of key security and budget committees.

Laws that passed first reading in the outgoing term will continue under "continuity" rules, while those only at preliminary reading will be annulled.