Finance Committee chair MK Hanoch Milwidsky, right, speaks with MKs Moshe Gafni, center, and Yitzhak Pindrus during a Knesset Finance Committee meeting in Jerusalem, August 4, 2026. (Chaim Goldberg/Flash90)

Coalition secures $82.6m for ultra-Orthodox education; opposition alleges ‘theft’

Finance Committee approves funds during Knesset recess after heated debate; package includes millions for yeshivas, Haredi culture and student transportation

by · The Times of Israel

Following hours of acrimonious debate, the Knesset Finance Committee voted on Tuesday to approve the allocation of over a quarter billion shekels ($82.6 million) in coalition funds to the ultra-Orthodox education system despite a legislative recess that started last month.

The move drew immediate rebuke from the opposition, with Democrats MK Naama Lazimi telling the committee that the the funding was simply “theft from the serving public,” a reference to those who serve in the military and pay taxes.

Overall, the committee approved more than NIS 267 million ($88 million), including over NIS 12.5 million ($4 million) for Haredi culture as well as millions for transportation for students of Haredi party-affiliated school networks, teacher training and “coordination and liaison bodies” — an apparent reference to the Vaad HaYeshivot (Yeshiva Committee), a body that has encouraged draft evasion.

The funds also include some NIS 26 million ($8.5 million) for preventing Haredim from dropping out of yeshivas, despite a 2025 announcement that the government would no longer finance the education of ultra-Orthodox youths who are studying at so-called “drop-out yeshivas” and refuse to enlist in the IDF for their mandatory service.

Drop-out yeshivas are institutions designed to keep Haredi men who are not interested in full-time religious study within an ultra-Orthodox framework, to prevent them from leaving the community.

The committee also authorized funding for yeshivas that encourage military service as well as Haredi hesder yeshivas, which combine military service with Torah study and are largely affiliated with the national religious community.

Students study at the Hebron Yeshiva in Jerusalem, August 28, 2025. (Chaim Goldberg/Flash90)

Calling the vote a “significant achievement,” Degel HaTorah chairman Moshe Gafni stated that “even in these complex times, when the world of Torah and education is facing difficult challenges, it is our duty to continue to care for Israel’s children and the Haredi education system. The budgets approved today are important news… and will help correct distortions and close gaps that have persisted for years.”

The funding was approved despite the fact that only a small fraction of ultra-Orthodox boys’ elementary schools teach core curriculum subjects as required by law.

Opposition lawmakers on the Finance Committee had temporarily managed to block the massive funding allocations for Haredi education, as well as for the Settlements Ministry, with a filibuster in a marathon session last Wednesday that extended past the 10 hours allowed for parliamentary meetings during a recess.

The Knesset House Committee had designated the Wednesday session ahead of time as the last one of the recess period in which items could be put on the Finance Committee agenda without prior agreement between the opposition and coalition.

Ultra-Orthodox Jews protest against the drafting of Haredi Jews outside the IDF Recruitment Center at Tel Hashomer, July 15, 2026. (Avshalom Sassoni/Flash90)

But on Sunday, after unspecified “heavy pressure” from the coalition, Knesset legal adviser Sagit Afik said the Finance Committee could reconvene to vote on the timed-out amendments.

The Finance Committee has previously sought to divert funds to Haredi institutions despite legal and procedural objections. In March, it approved nearly NIS 100 million ($32.75 million) for Haredi educational institutions as part of a broader NIS 1 billion ($331 million) transfer that had been frozen by the High Court of Justice in December, after opposition lawmakers argued that the government was funding schools that do not teach the core curriculum required by law.

Haredi parties demanded massive cash infusions following a landmark June 2024 High Court ruling that found the decades-long Haredi exemption from military service lacked legal basis. The ruling led to the abrogation of certain Haredi social benefits.

Several pieces of legislation aimed at enshrining the ultra-Orthodox military exemptions were pushed through in the final days of the Knesset, but they have since been frozen by the Supreme Court.

Tens of thousands of ultra-Orthodox men aged 18 to 24 are currently eligible for military service but have ignored conscription orders, despite manpower shortages in the army and widespread anger among the general population over an unequal sharing of the burden of defending the country.