Likud Primaries Funded by State, Banning Donations from Wealthy Donors

The Likud party's upcoming primary elections will be financed according to a 2018 amendment to the Political Parties Law, initiated by MK David Amsalem. This amendment mandates that the state funds the primary campaign expenses of incumbent public officials running for office, aiming to eliminate reliance on donations from wealthy individuals and prevent elected officials from feeling indebted to such donors after elections. Instead, candidates receive public funding, with incentives to reach the spending cap.

According to the law, a candidate eligible for public funding must be a sitting member of the Knesset and can receive state funding up to the expenditure ceiling, which depends on the number of eligible voters. For the Likud primaries, where over 100,000 voters participate, the spending cap is set at 380,000 shekels. By comparison, the Democratic Party primaries had a lower cap of 275,000 shekels due to fewer voters.

Candidates who are not Knesset members may raise donations or obtain loans up to their spending limit, provided they secure a bank guarantee. If such a candidate is elected to the Knesset within a year, the loan converts into a grant; otherwise, it must be repaid. Candidates who fall short of election but receive at least 60% of the required votes get a partial grant. Non-incumbent candidates may accept individual donations up to 13,470 shekels but are prohibited from receiving corporate donations, anonymous contributions, or cash donations exceeding 200 shekels.

This funding framework seeks to promote transparency and fairness in the primary elections by reducing the influence of wealthy donors and ensuring candidates rely on public financing or regulated donations. The law also encourages candidates to manage their campaign spending within the established limits.