Israeli Government Approves Controversial Funding Plan for IDF Wounded Rehabilitation Reform

The Israeli government has adopted the recommendations of the Mor Yosef Committee to reform the rehabilitation system for IDF wounded soldiers and their families, following a sharp increase in casualties after the October 7 war. The committee, chaired by Professor Shlomo Mor Yosef, was established due to an unprecedented surge in rehabilitation cases, with approximately 25,000 new war casualties, over half of whom suffer from mental health issues, compared to about 15% previously. The reform includes expanding mental health treatment coverage and enhancing family rights.

However, the financing method for this reform reveals a complex budgetary reality. The government plans to fund the reform primarily through a broad 4% cut across all government ministries starting in 2027. This includes significant reductions in budgets for the police, prison service, and Ministry of National Security, which are expected to lose around 500 million shekels. Other sectors such as culture, science, sports, and employment will also face cuts totaling tens of millions of shekels.

Additional funding sources for 2026 include 200 million shekels from coalition funds, 175 million shekels originally allocated for salary increases for teachers in ultra-Orthodox special education, and 39 million shekels redirected from the "Tnufa" Northern rehabilitation budget. For 2027, the plan includes 570 million shekels from the same teacher salary budget and 100 million shekels from development budgets for local authorities in the eastern border area.

Critics point out that while allocating funds for wounded soldiers is a worthy goal, the cuts to other public services highlight the government's strained fiscal situation. Moreover, the government’s decision coincides with the approval of 6 billion shekels in coalition funds for 2026 and recent budget transfers amounting to hundreds of millions of shekels to the Settlement Ministry and tens of millions more to ultra-Orthodox education, raising questions about budget priorities.

The Mor Yosef Committee estimates that fully implementing its recommendations will require an additional 2 billion shekels annually for the rehabilitation department, plus a one-time investment of about 500 million shekels mainly for IT infrastructure. The government’s current allocation stands at approximately 415 million shekels for this year and about 1.34 billion shekels annually from 2027 onward, significantly less than the committee’s full estimate.