Ynet has learned that, just before stepping down as Interior Minister, Knesset member Moshe Arbel sent an urgent letter to Finance Minister Bezalel Smotrich, warning that the Population and Immigration Authority—responsible for processing visa-exempt entry requests to Israel—had yet to receive nearly $3.8 million in funding earmarked for the program. In response, the Finance Ministry blamed the delay on the legislative freeze caused by the Haredi-led boycott in the Knesset, which has prevented the passage of key budget measures.
In his letter, dated July 15, Arbel warned that unless the funds are transferred within 14 days, ministry employees would be instructed to suspend the processing of electronic travel authorizations for visa-free entry. Officials at the Population and Immigration Authority stressed that halting the system could jeopardize Israel’s standing in the U.S. Visa Waiver Program, which is based on reciprocal access.
In 2023, Israel and the United States signed a mutual agreement easing travel restrictions. Under the deal, Israeli citizens no longer need to obtain visas for U.S. entry and can instead use the simplified ESTA system. In return, American travelers were granted similar privileges via Israel’s ETA system—an online entry form introduced to mirror the U.S. process.
Arbel’s letter emphasized that operating the ETA system requires dedicated personnel and technological infrastructure. According to government decisions, funding was to be provided through a $6.75 fee collected for each ETA application.
However, Arbel noted that since May 27, a proposal to formally allocate these funds to the Population Authority has been stalled in the Knesset and has yet to pass the required legislative stages. This delay, he said, has created a critical funding gap that threatens the system’s continued operation.
Since the program's launch, roughly 550,000 ETA applications have been submitted, generating an estimated $3.6 million in fees—yet none of that funding has been transferred to the Population Authority. With approximately 1.3 million additional entries expected by year’s end, Arbel warned the system will become unsustainable without immediate action.
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“Under these conditions—without a designated funding source and amid a surge in demand—the Population and Immigration Authority will struggle to maintain service,” Arbel wrote. “To prevent slow, partial, or inefficient service, I’ve instructed the authority to prepare for a system shutdown within 14 days if the appropriate budget—covering both current and projected revenue through the end of the year—is not transferred.”
A senior official at the Finance Ministry responded: “During budget talks with the Interior Ministry and the Population Authority, it was agreed that the ETA system would receive $16.2 million annually, funded through user fees. This requires primary legislation. The bill—drafted jointly by the Finance Ministry and the authority—has passed committee review and is ready for final readings. But due to the legislative boycott by Haredi factions, it has yet to be brought to a full vote and therefore remains inactive.”
The official added: “Minister Arbel, himself a member of the Haredi parties, would have done well to urge his colleagues to support the legislation and ensure the continued operation of the ETA system. Until the bill is passed, the budget cannot be released. In the meantime, the Interior Ministry is welcome to propose an alternative funding solution.”