MK Milvitsky Blocks Over 1 Billion Shekels for Gaza Envelope Rehabilitation to Push Northern Compensation Plan

Hanoch Milvitsky, chairman of the Knesset Finance Committee and member of Likud, is withholding the transfer of 1.1 billion shekels allocated for the rehabilitation of the Gaza envelope communities. This move is part of his political struggle to expand compensation frameworks for businesses in northern Israel. Milvitsky is effectively linking two unrelated budgetary programs, using the Gaza envelope residents as leverage for his demands, just ahead of the Likud primaries where politicians seek to showcase achievements.

The Finance Committee was scheduled to discuss a budget reallocation request from the Tekuma Administration, responsible for Gaza envelope rehabilitation, to approve the internal budget transfer needed to pay suppliers for ongoing projects. The funds include 34 million shekels for absorption baskets for residents returning to 13 communities severely affected by the October 7 massacre, as well as renovations in Kibbutz Kissufim, construction of student dormitories, and cultural activities. These projects are part of a government-approved five-year plan and the Tekuma Law granting special powers to the administration.

Milvitsky blocked the discussion, citing lack of response to his demand for an additional 500 million shekels to expand compensation to northern businesses, proposing the funds come from the northern rehabilitation authority, Tenufa. However, Tenufa operates with separate budgets and work plans, and the compensation fund is legally limited to approved frameworks. Although discussions are ongoing between Tenufa, the Finance Ministry, and the Tax Authority about expanding compensation, it is unclear if funds will come from Tenufa’s budget, as that would reduce northern rehabilitation programs.

Milvitsky’s tactic appears aimed at pressuring Tekuma’s CEO, Aviad Friedman, to agree to budget cuts in northern rehabilitation to fund Milvitsky’s compensation plan. This standoff delays critical payments and projects in the south, affecting all Gaza envelope residents. Milvitsky did not respond to requests for comment.