The 800 Million Shekel Mistake: Inside the Knesset’s Chaotic Late-Night Session
In a race against a deadline that would have triggered immediate elections, the Knesset has approved the 2026 budget following a night of dramatic parliamentary errors and massive funding increases for religious sectors.
The Israeli Knesset has narrowly avoided a government collapse and snap elections by passing the 2026 state budget just hours before the legal deadline. The legislative marathon, which concluded in the early hours of Monday morning, was marked by high political drama, including a significant error by the opposition that allowed hundreds of millions of shekels in additional funding to pass for Haredi institutions. Faced with the staggering financial burden of an ongoing war that has increased spending by nearly 50 billion shekels, the coalition approved a deficit target of 4.9% of the GDP. This fiscal plan prioritizes government stability over structural reforms, effectively ending a period of severe budgetary constraints while drawing fierce condemnation from political rivals who characterize the spending as political bribery.
Parliamentary Chaos and Sectoral Funding
The session took a surreal turn shortly after midnight when a "parliamentary exercise" by the coalition led to 109 Knesset members, including those from the opposition, accidentally voting in favor of budgetary reservations. This mistake effectively authorized an additional 800 million shekels for Haredi education, funds that had previously faced significant legal hurdles. Legal advisors had questioned the destination of these funds following High Court rulings regarding equal military service, yet the error by the opposition allowed the money to be integrated into the law. Former Prime Minister Naftali Bennett reacted with fury, stating, "This is a midnight looting snatch. At this very moment, not like, but actually thieves in the night, the government is carrying out a snatch and adding hundreds of millions more to Haredi education that encourages draft evasion." He added that while soldiers are fighting on the Litani front, "government ministers are looting us all."
The 2026 budget reveals a stark disparity in funding priorities. While the regular public primary and middle school systems received a modest 8% increase, Haredi educational networks saw massive surges. The Independent Education network of United Torah Judaism received a 22% spike, bringing its total to over 2.1 billion shekels, while Shas’s "Maayan HaChinuch HaTorani" saw a 30% increase to 1.2 billion shekels. Other sectoral offices also saw double-digit growth, including the Ministry of Settlements led by Orit Strock, which received a 33% boost. Opposition Leader Yair Lapid condemned the move as "the largest theft in the history of the country," claiming that the 6 billion shekels in coalition funds could have purchased over 150,000 bomb shelters for citizens.
Economic Resilience vs. Political Criticism
Finance Minister Bezalel Smotrich presented an optimistic view of the Israeli economy during the final debate, defending the 8.8% increase in government spending. "You promised that the shekel would weaken, but it is stronger than ever. You said the stock market would dive, and it only rises," Smotrich claimed, noting that high-tech investments are breaking records and unemployment remains low. He argued that the additional tens of billions are essential to finishing the military campaign and improving Israel's geopolitical standing. However, the opposition remains unconvinced, with Bennett calling it "the most reckless and anti-Zionist budget in the history of Israel." Despite the intense rhetoric and the legal challenges that likely await in the High Court, the passage of the budget ensures that the current government will not face an immediate trip to the ballot box, at least for the duration of the current fiscal year.