Finance Ministry Accuses Defense Ministry of Delaying Reservist Benefits, Impacting Summer Vacations

Israel's Finance Ministry has accused the Defense Ministry of failing to distribute benefits to reservists on time, despite the budget being transferred as scheduled. Finance Ministry Director-General Israel Malachi sent a letter to Defense Ministry Director-General Amir Baram, revealing that although funds were allocated in advance, reservists have yet to receive their entitled benefits, including digital "Fighter" cards and family vacation vouchers. Malachi emphasized that the delay, occurring during the critical July-August vacation period, undermines the purpose of these benefits, which are meant to reward reservists with family time after months of service.

The "Fighter" card, launched in September 2025 in cooperation with the Defense Ministry, Finance Ministry, and IDF, automatically credits reservists based on their days served, with a minimum of 10 days per year and a maximum annual cap of 5,000 shekels. The card can be used at selected businesses such as restaurants, cafes, clothing stores, and entertainment venues. Alongside the card, reservists receive family vacation vouchers. Malachi criticized the Defense Ministry's unclear administrative delays, stating they "empty the recognition of its content."

The Defense Ministry responded that vacation grants for reservists will be distributed in August, and the "Fighter" card benefits in September, consistent with last year’s schedule. This dispute is not the first between the ministries over reservist benefits. The Finance Ministry has previously accused the Defense Ministry under Baram of poor budget management, including holding billions of shekels allocated for reservist benefits in a separate fund rather than releasing them.

Past issues include delayed distribution of vacation vouchers, which were initially planned for late 2024 but only began in March 2025, and a controversy last summer when thousands of reservists were asked to return vouchers or money due to recalculated eligibility, a move later softened after public outcry. Additionally, the "Fighter" card faced criticism for a sudden reduction in participating businesses shortly after its launch without explanation. Finance Ministry officials say the clumsy management ultimately harms reservists and their families.