Israeli Supreme Court Halts Transfer of Hundreds of Millions to Ultra-Orthodox and Settlement Ministry

The Israeli Supreme Court, through Justice Alex Stein, has temporarily blocked the transfer of hundreds of millions of shekels approved by the Knesset for ultra-Orthodox communities and the Ministry of Settlement. The funds, authorized shortly before the upcoming elections during the Knesset recess, include 335 million shekels for the Ministry of Settlement, 72 million for Jewish culture, 26 million to prevent yeshiva dropout, 26 million for Shas youth programs, and 32 million for after-school programs and summer schools for the ultra-Orthodox.

The freeze followed a petition filed by Knesset member Naama Lazimi of the Democratic Party and the Hadash organization, arguing that the budget transfers violated procedural norms and were illegal. Justice Stein ruled that due to procedural flaws in the Finance Committee's approval process, the budget transfers would be delayed until the petition is fully heard by a three-judge panel, with the state required to respond two days before the hearing. However, Stein allowed the release of funds designated for civil emergency expenses.

The Finance Committee's approval of these coalition funds during the recess and right before elections drew criticism from opposition parties and broke customary practice. Finance Committee Chairman Hanoch Milwitsky of Likud sharply criticized the court's decision, calling for the closure of the Supreme Court and the establishment of a constitutional court, accusing the court of overreach.

The case highlights tensions between the judiciary and the legislature over budgetary authority and election timing, with the Supreme Court asserting procedural oversight over last-minute budget approvals that benefit specific sectors, particularly the ultra-Orthodox and settlement communities.