Israeli Government Redirects Arab Sector Energy Program Funds to Security Agencies

The Israeli government has effectively terminated a successful energy program aimed at promoting renewable energy and energy efficiency in Arab local authorities. This decision follows a political deal between ministers Itamar Ben-Gvir and May Golan, resulting in a government-approved cut of approximately 497 million shekels from the Arab sector development budget across various ministries. The Ministry of Energy, led by Eli Cohen, will cease funding renewable energy initiatives in Arab communities, reallocating these funds to the Shin Bet and Israeli Police to combat crime in the Arab sector.

The original five-year economic plan, approved in 2021 by the coalition government, aimed to reduce disparities in the Arab sector through multi-ministerial projects until 2026. However, in its final year, the Netanyahu government redirected nearly 364.5 million shekels to establish a Shin Bet unit focused on preventing arms smuggling and about 132.4 million shekels to create a national police unit targeting crime in Arab communities. Additionally, 130 new Shin Bet personnel positions and an annual budget of 35 million shekels starting in 2026 were allocated.

The Ministry of Energy had previously invested 72 million shekels out of a 100 million shekel allocation to support renewable energy projects in Arab municipalities. These projects included solar panel installations in Umm al-Fahm and Kafr Qasim, energy storage systems, and energy-efficient upgrades in public institutions across 258 sites. The program not only advanced clean energy adoption but also helped local authorities generate independent revenue streams, crucial given their socio-economic challenges.

Despite the program's success and a high implementation rate of about 70%, the government-wide budget cuts and fund reallocation have halted further progress. The Ministry of Energy stated that the remaining budget was affected by broad cuts and delays in treasury transfers but affirmed its ongoing commitment to promoting sustainable energy across all municipalities.