Smotrich freezes NIS 200m. destined for Arab sector

Finance Minister Bezalel Smotrich (Religious Zionist Party) on Sunday announced a freeze of some NIS 200 million that was earmarked to support Israel’s Arab community, saying he is “re-examing” its use.

This comes amid mounting pressure among Arab authorities over what they perceive as attempts by the coalition to weaken their standing through the halting of other budgets aimed towards development, transportation, infrastructure, and education. This has culminated in threats to freeze the opening of schools at the beginning of September.

Many Arab communities currently lack classrooms and schools – approximately 305 are needed throughout the country – and part of the grant was intended for constructing schools.

The now-frozen grant was announced under the previous Naftali Bennett-Yair Lapid government and was seen as a continuation of a five-year plan, totaling NIS 15 billion, under the then-government of Prime Minister Benjamin Netanyahu. The previous government’s extension totaled an additional NIS 30b. Both plans involved the aforementioned infrastructure, transportation, and development, as well as reducing crime in the Arab sector.

The current government has not been following the plan, with National Security Minister Itamar Ben-Gvir also recently calling for a review of the funds.

The freeze could be costly 

The plan is a part of the Social Equality Ministry, led by Minister Amichai Chikli, who is also the minister of Diaspora Affairs. As a result of the current makeup of the government, there has been internal debate over whether the funds should be directed instead toward the haredi sector, which could also benefit from them.

This position was pushed by Environmental Protection Minister Idit Silman, who started a process of allocating NIS 100 million toward the haredi sector with the goal of combating waste and pollution in their communities.

Smotrich’s freeze caused a stir within the coalition, with Interior Minister Moshe Arbel (Shas) sending a letter to Finance Minister Bezalel Smotrich, asking him to release the funds for fear of causing damage to the budget.

Arbel wrote that the freeze would cost the state much more than the frozen NIS 200m., as it could require bailing out a much larger deficit of the Arab authorities.

In a comment to The Jerusalem Post, Smotrich’s office said that “This is a coalition demand of Mansour Abbas and the giving of Ayelet Shaked to Mansour Abbas. “These funds are frozen until there is an inspection and oversight mechanisms in place.”