Israeli Supreme Court Justice Alex Stein Temporarily Halts Budget Transfers to Haredi Education System

The Knesset Finance Committee approved a series of significant budget transfers totaling approximately 250 million shekels aimed at strengthening and funding the Haredi education system across all its sectors. However, on the morning following the approval, Supreme Court Justice Alex Stein issued a temporary injunction halting the transfer of these funds. The injunction cited procedural flaws in the Finance Committee's meeting held on August 4, 2026, suspending the budget transfers until further judicial review. The court explicitly excluded emergency civil defense expenses from this freeze.

Justice Stein ordered the petition to be heard by a three-justice panel as soon as possible, requiring preliminary responses within 48 hours of the scheduled hearing. The Finance Committee chairman, MK Hanoch Milwitsky, criticized the decision harshly, calling for the closure of the Supreme Court and advocating for a constitutional court instead.

Among the approved budget items was a historic decision to fully fund Haredi kindergarten teachers according to their seniority, closing a long-standing gap compared to their counterparts in the general education system. The budget also allocated substantial resources to regulate student transportation in major Haredi education networks, subsidize after-school programs in unofficial or exempt institutions, and enhance social and educational support programs for at-risk youth. Additionally, funds were designated to expand teacher training programs in Haredi seminaries.

The budget initiative was led by Finance Committee chairman and Degel HaTorah MK Moshe Gafni, who emphasized the importance of continuing to support the Haredi education system despite current challenges. The day before the injunction, Justice Stein had rejected an urgent petition to prevent the Finance Committee from convening during the election recess, a petition filed by the organizations Hiddush, Freedom of Religion and Equality, and MK Naama Lazimi. They argued that the committee's meeting violated rules governing Knesset committee activity during election recesses and involved large coalition budget transfers without proper notice or consent.

The injunction now pauses the implementation of the approved budget transfers pending further court deliberations, marking a significant judicial intervention in the funding of the Haredi education sector.