Israel to Divert Arab Development Funds for Defense Needs

To fund the procurement, the government is diverting 964 million shekels from a five-year development plan for the Arab community in Israel, spanning the years 2027 to 2029. The remaining 68 million shekels will be drawn from the 2026 state budget. Finance Minister Bezalel Smotrich, who proposed the reallocation, stated that the move would not require sweeping cuts across government ministries. Under the plan, the cuts to the Arab society program will total 169 million shekels in 2027, 342 million shekels in 2028, and 453 million shekels in 2029.

While the specific defense items remain classified, reports suggest the funding is intended to finalize a deal for Apache attack helicopters. Defense officials indicated that the United States Department of Defense had agreed to a final extension until Wednesday to secure the deal. Legal advisors raised concerns about the timing of the decision so close to an election, noting the need for governmental restraint, but ultimately found no legal obstacles due to the urgent security necessity. Meanwhile, defense officials warned of a 40 billion shekel budget deficit for 2026, and the government is reportedly considering an additional cut of 2 to 3 billion shekels for further defense needs.