Knesset Finance Committee Approves Major 2026 State Budget Reallocations

The Knesset Finance Committee approved a series of budgetary changes for the 2026 state budget on Wednesday. The approval followed green lights from the Arrangements Committee, allocating significant funding boosts to the Ministry of Defense, Ministry of Transport, Ministry of Justice, and the Prime Minister Office.

As part of the amendments, 81 million shekels will be transferred from the Ministry of Defense budget toward civilian emergency expenditures. This sum is designated for implementing a government decision regarding the procurement and placement of portable shelters nationwide, drawing lessons from Operation Roaring Lion. Additionally, an internal reallocation of approximately 67 million shekels was approved within the Prime Minister Office, directed toward funding the Artificial Intelligence Directorate.

In infrastructure and transportation, the committee approved a 30 million shekel transfer alongside financial commitments totaling roughly 852 million shekels for Israel Land Authority development projects. This budget will also fund long-term land rehabilitation initiatives, including remediation of former Israel Military Industries sites. Furthermore, another 30 million shekels will be allocated to the national road safety plan.

The Ministry of Justice will also receive an injection of approximately 74 million shekels through internal adjustments. The funding is intended, among other things, to adjust the budget for the government legal representation abroad, in light of increased activity by the universal jurisdiction unit since the outbreak of the Swords of Iron war. The public defender and legal aid budgets will also be adjusted to match projected execution rates.