Israeli Coalition Approves Controversial Funding for Haredi Institutions Amid Midnight Knesset Budget Negotiations

Israeli coalition passes last-minute budget amendments for Haredi schools, drawing sharp criticism from opposition leaders during the Iran war.

By: AXL Media

Published: Mar 29, 2026, 6:13 PM EDT

Source: Information for this report was sourced from Times of Israel

Legislative Maneuvering in the Final Budget Hour

In a significant budgetary shift just hours before a final vote, the Israeli coalition secured the allocation of substantial funds directed toward Haredi sectarian interests. According to Hebrew media reports, these amendments were pushed through around midnight as the Knesset moved to finalize the 2026 fiscal plan. The sudden injection of capital into ultra-Orthodox educational institutions represents a critical tactical victory for the coalition’s religious partners, ensuring their support for the broader national spending package.

Legal Obstacles and Policy Workarounds

The newly approved funding appears to circumvent previous restrictions established by Attorney General Gali Baharav-Miara. According to Channel 12, these funds were initially frozen due to the unresolved issue of Haredi enlistment in the Israel Defense Forces (IDF). By embedding these allocations into last-minute amendments, the coalition has effectively challenged the legal standing of the previous blockade, asserting political control over the distribution of state resources during a period of national emergency.

Political Backlash and Moral Critiques

Opposition Leader Yair Lapid has issued a scathing response to the midnight proceedings, characterizing the move as a detachment from the current reality of the Israeli populace. According to Lapid, the decision to prioritize sectarian funding while citizens remain in bomb shelters due to Iranian hostilities constitutes a failure of leadership. The rhetoric highlights a deepening internal divide regarding how national wealth is distributed during a multi-front war that demands significant civilian and military sacrifice.