Just four days after the Israeli government approved the allocation of 1 billion shekels to the Defense Ministry for the purchase of Apache attack helicopters, another major budget cut is on the agenda. The government is expected to approve an additional 2.6 billion shekels in cuts on Sunday to finance what officials describe as "urgent defense procurement," with civilian ministries again bearing the burden while funds earmarked under coalition agreements remain untouched.
Unlike the previous cut, which drew the entire 1 billion shekels from a multiyear development budget for Israel's Arab communities to purchase 12 Apache helicopters, the new measure will impose across-the-board reductions on government ministries. In both cases, not a single shekel will be taken from coalition funds, the allocations earmarked for projects and priorities agreed upon by the governing parties.
Tanks used by the brigade during the current war
(Photo: IDF)
The latest cuts will amount to approximately 5% of each ministry's development and procurement budget. As a result, just nine days before Israel's October 27 election, the government is preparing to approve substantial reductions in funding for major civilian ministries already struggling with budget constraints.
The Education Ministry will lose 285 million shekels, the National Security Ministry 225 million shekels, the Health Ministry 150 million shekels and the Welfare Ministry 140 million shekels. The proposed reductions come despite a recommendation from senior Finance Ministry professionals to draw the money required for urgent defense procurement from coalition funds instead. That recommendation was rejected, and the proposed decision would leave those allocations entirely intact.
The additional reductions will affect approximately 4% of ministries' flexible budgets, meaning funds not already committed to employee salaries or other binding government obligations. In practice, this means that future programs and planned initiatives will be among the main casualties.
Following angry objections from ministers over the planned cuts to their departments, senior Finance Ministry officials said Saturday evening: "Several government ministries asked to avoid cuts to budget items they considered urgent. The government therefore decided on an equal, across-the-board reduction for all ministries. We have already warned that enormous budget increases for the defense establishment would come at the expense of citizens, and that is exactly what is happening."
Education Ministry: 285 million shekel cut
The Education Ministry has been instructed to cut 285 million shekels from its overall budget of approximately 97 billion shekels.
About 90% of that budget is allocated to teaching hours in kindergartens and schools, effectively covering salaries for teachers and kindergarten staff. Those funds will not be affected. The ministry's management has therefore been asked to examine other areas where reductions could be made and submit recommendations to Education Minister Yoav Kisch.
The options under consideration involve spending items over which the ministry has greater flexibility, particularly supplementary programs whose funding is determined annually rather than guaranteed in the permanent budget. These include informal education activities such as youth movements, external educational programs, teacher training in schools, professional training at ministry headquarters, funding for nonprofit organizations and joint educational initiatives with local authorities. Streamlining operations at the ministry's headquarters is also being considered.
The Education Ministry said it was "examining the options and will present them to the minister for consideration regarding implementation."
Health Ministry: 150 million shekel cut
Health officials have expressed serious concern about the proposed reduction and its potential consequences for an already strained healthcare system.
In a strongly worded letter to Finance Ministry Director General Israel Malachi and budget commissioner Maharan Frozenfar, Health Ministry Director General Moshe Bar Siman Tov called for the healthcare system to be exempted from the cuts.
Bar Siman Tov warned that the additional across-the-board reduction would bring cumulative cuts to the healthcare system's budgets since the beginning of the year to approximately 600 million shekels and would "inevitably cause severe harm to public healthcare services."
Israel's healthcare system has faced successive crises in recent years, beginning with the COVID-19 pandemic and continuing through three years of war. During that period, hospitals and healthcare providers have faced unprecedented pressure, including treating large numbers of wounded patients and responding to a significant increase in demand for mental health services. These challenges have been compounded by persistent staffing shortages and other operational difficulties.
Officials warn that another cut could further reduce access to healthcare services for Israelis, some of whom already face limited availability and lengthy waiting times. Mental health services could also be affected, along with the ministry's ability to recruit additional healthcare professionals.
The cuts could also undermine emergency preparedness, efforts to protect hospitals against attacks and the healthcare system's preparations for the needs of an aging population.
"In 2026 alone, approximately 20% of the ministry's current operating budget, amounting to some 500 million shekels, has already been cut, in addition to numerous reductions since the beginning of the war that have directly and severely harmed the healthcare services that should be provided to the public," Bar Siman Tov wrote in the letter, copies of which were also sent to Finance Minister Bezalel Smotrich and Health Minister Haim Katz.
He also criticized the government's broader budget policy.
"The notion that security needs can continue to be financed through the systematic and relentless erosion of Israel's civilian systems and public services, by imposing indiscriminate across-the-board cuts, fails to take account of all the components of national resilience," he wrote.
"Israel's resilience does not rest on military strength alone, but also on the ability of all its civilian systems to function, provide support and serve citizens in routine times and during emergencies."
Welfare Ministry: 140 million shekel cut
The Welfare Ministry faces a reduction of 140 million shekels, raising concerns about the impact on services for survivors of domestic violence, people with disabilities and women involved in prostitution. Hundreds of millions of shekels have already been cut from the ministry's budget, leaving it struggling to address needs arising from the war.
The ministry has submitted an urgent request to the Finance Ministry seeking an exemption from the planned across-the-board reductions.
A senior Welfare Ministry official warned that the proposed cut could directly affect essential social services.
"This would deal a devastating blow to the ministry's ability to provide services to the most vulnerable populations in Israel," the official said.
Among the initiatives at risk are new facilities for women affected by domestic violence, planned services for women involved in prostitution and programs intended for people with disabilities as part of the implementation of Israel's Welfare Services for People with Disabilities Law.
The ministry was already subjected to a 3% reduction in its flexible budget in March to finance war-related expenses, amounting to approximately 90 million shekels. That was part of a series of across-the-board cuts that have totaled around 450 million shekels in the ministry's 2026 budget.
Even before the latest reductions, the ministry had limited room to maneuver in developing new programs. Of the approximately 1 billion shekels originally allocated for new services, nearly half was earmarked for expanding services for people with disabilities, an obligation established under legislation passed by the Knesset in 2022.
The successive cuts now threaten to bring the ministry's ability to develop new services to an almost complete standstill, even as demand continues to grow because of the war and broader social needs.
National Security Ministry: 225 million shekel cut
The National Security Ministry, which oversees the Israel Police and other law enforcement and security agencies, faces a reduction of 225 million shekels. However, a ministry official said the cuts were not expected to affect the operational budgets of the bodies under its authority.
According to the official, the reduction would be taken from an emergency reserve held by the ministry rather than from funds allocated to the agencies' routine operations.
The official emphasized that the measure was not expected to affect operational capabilities, day-to-day activities or the ability of the organizations to continue carrying out their duties.