Knesset Legal Advisor blocked the distribution of money from the National Welfare Fund

“Fund funds intended for Israeli citizens cannot be used as a parallel budget, which means it is unacceptable, in particular, to allocate them for the same purposes in the next budget year, much less transfer them as coalition money. This undermines the intent of the legislator and creates a bypass mechanism,” Afik concluded.

Afik insists that the fund’s annual income distribution of NIS 236 million is subject to revision. In particular, contrary to the direct requirement of the law, virtually no funds have been allocated for renewable energy and employment development in the Negev, while significant amounts are proposed to be allocated to the needs of religious parties.

According to the proposal of the Ministry of Finance presented to the Knesset, in 2026, of the 236 million shekels of fund income that will go to the state budget, the government intends to allocate 135 million (57%) to sectoral needs: in particular, 60 million are allocated for modernizing the infrastructure of “contractual” yeshivas and 50 million for toranic cores, student villages and preparatory courses for youth from the periphery (without breakdown by programs). Another 25 million are earmarked for cultural heritage sites.