A Billion Shekel Freeze: The High Court Halts Funding for Charedi Schools

The Israeli High Court of Justice has delivered a significant blow to the governing coalition by issuing an interim order to freeze the transfer of approximately 2 billion shekels in state funds. Of this total, roughly 1 billion shekels ($314 million) was specifically earmarked for Charedi educational institutions. This decision came just days after the Knesset Finance Committee approved the funding, sparking an immediate and fierce political battle between the judiciary and religious lawmakers. The court’s intervention follows a petition by the Yesh Atid party, which argued that the money was being funneled into schools that refuse to teach essential core subjects like mathematics and English, effectively bypassing legal standards for state education.

The reaction from the Charedi leadership was one of absolute fury. Degel Hatorah Chairman MK Moshe Gafni accused the judges of declaring war on the Torah institutions and the Charedi public. He criticized the court for demanding a response within a few hours, calling the timeline unacceptable and claiming the judges acted out of their own personal worldviews rather than the law. Gafni stated that the judges will not be absolved of the guilt for harming the livelihoods of teaching staff, asserting that there is no democracy in the State of Israel when judges can strike down legally passed budgets with a single blow. Similarly, Meir Porush of Agudas Yisrael claimed the legal system is at war against everything sacred, comparing the court’s decision to the actions of tyrants.

The ruling has also reignited the debate over the stalled legal reforms. Justice Minister Yariv Levin urged coalition members to move beyond protest and immediately vote for the series of legal reform bills that have been stuck in the Knesset for months, calling it the best answer to the deliberate harm inflicted upon the Charedi public. Meanwhile, opposition members like Naor Shiri praised the freeze, arguing that it is vital for the Knesset to receive truthful data and ensure that billions of shekels are not poured into unregulated systems. Critics of the funding argue that during a time of war, when the state is facing constant terror threats and many citizens cannot afford trauma therapy, it is irresponsible to allocate vast sums to groups that do not serve in the military or teach the skills necessary to contribute to the modern economy.

The court has scheduled a full hearing on the petition for January 8, 2026. Until then, the Finance and Education Ministries must provide a formal justification for why these funds should be released to schools that remain exempt from the core curriculum. As the nation remains on edge due to ongoing security threats from the terrorists of Hamas and other regional actors, the fight over state resources and the role of the judiciary continues to deepen the internal divisions within Israeli society.