Israeli Supreme Court Freezes 400 Million Shekels in Coalition Funds to Ultra-Orthodox and Settlement Ministries

The Israeli Supreme Court issued a conditional injunction on Monday evening halting the transfer of 400 million shekels in coalition funds to ultra-Orthodox institutions and the Settlement Ministry led by Orit Strook. The funds, approved on August 4 during the Knesset Finance Committee session held in the election recess, include 286 million shekels for the Ministry of Education and 123 million for the Settlement Ministry. The court ordered the Finance Committee chair, the Knesset Speaker, and the Finance Ministry to explain why these transfers should not be canceled. Until then, the funds remain frozen under an interim order.

The petition was filed by Knesset member Naama Lazimi (Democrats) and the NGO Adalah for Freedom of Religion and Equality. The panel of judges David Mintz, Khaled Kabub, and Ruth Ronen also approved releasing urgent budgets approved in the same session, such as reimbursements to local authorities for the "School of the Summer Vacation" and funds for rehabilitating northern and southern communities. This separation was requested by the court but refused by Finance Minister Bezalel Smotrich.

The court mandated a response affidavit from the respondents by September 10 and noted that if urgency exists for the frozen funds, the parties may petition the court. Adalah’s legal advisor, Dr. Yifat Solel, criticized the Finance Minister for attempting to withhold funds for education and regional rehabilitation to coerce budget transfers favoring ultra-Orthodox institutions and illegal settlements. Knesset member Lazimi stated the ruling demands accountability for indiscriminate public fund distribution ahead of elections and condemned Smotrich’s attempt to block urgent local authority funds for election bribery and settlement support.

Among the frozen allocations are 26.1 million shekels for dropout prevention in yeshivas, 16.1 million for subsidizing after-school programs in ultra-Orthodox institutions, 12.5 million for Jewish ultra-Orthodox cultural support, 15.2 million to expand support for Torah institutions near Gaza, 69 million to the Maayan Torah Education Network linked to Shas and United Torah Judaism, 16.4 million for ultra-Orthodox "School of the Summer Vacation" institutions, and smaller sums for other religious educational and exemption-promoting bodies.