24 August 2026ICE – משפט

High Court Freezes 409M NIS in Budget Transfers Approved During Recess

The Supreme Court issued an interim order freezing the transfer of hundreds of millions of shekels to the Ministries of Education and Settlement, which were approved by the Finance Committee following the dissolution of the Knesset. Simultaneously, the Court authorized the release of urgent funds for local authorities and the rehabilitation of settlements in the north and south.

Source transparency

This is an original newsroom summary and analysis. The source was not reproduced, and readers can inspect the original publication.

Original publication at ICE – משפט

Why it matters

The High Court's decision serves as a reminder of the power limitations of Knesset committees during recess and election periods, highlighting judicial scrutiny over the allocation of substantial coalition funds.

Key points

  • ▪The High Court froze the transfer of 409 million NIS in coalition funds approved by the Finance Committee after the Knesset was dissolved.
  • ▪The interim order applies to budgets for the Ministries of Education and Settlement, including Haredi educational institutions and aid funds.
  • ▪The Court authorized the release of urgent budgets for settlement rehabilitation and the 'School of the Summer Vacation' program.
  • ▪The state must submit an affidavit in response by September 10.
  • ▪The petition was filed by MK Naama Lazimi and the Hiddush organization.

In a significant legal move, the Supreme Court issued an order nisi and an interim order last Monday regarding a petition challenging the convening of the Finance Committee during the election recess. Judges David Mintz, Khaled Kabub, and Ruth Ronen ordered the state to explain why the transfer of approximately 409 million NIS in coalition funds, approved by the committee on August 4, should not be canceled. According to reports on the 'ICE' website, the petition was filed by Knesset Member Naama Lazimi and the Hiddush organization for Religious Freedom and Equality. The freeze affects the Ministry of Education, allocated approximately 286 million NIS, and the Ministry of Settlement, headed by Minister Orit Strock, allocated approximately 123 million NIS. The list of frozen budgets includes substantial sums earmarked, among other things, for recognized education networks in the Haredi sector, programs to prevent dropout from Yeshivas, increased subsidies for afternoon programs in the Haredi sector, and budgets intended for religious institutions in the Tekuma region of the Gaza Envelope. Additionally, the list includes freezes on budgets for exempt institutions, Haredi Jewish culture, and an aid fund for Yeshiva students.

In their decision, the judges distinguished between these funds and other urgent budgets approved at the same Finance Committee session. The Court granted the petitioners' request and ordered the immediate release of essential budgets, including reimbursements to local authorities for the 'School of the Summer Vacation' program, as well as funds intended for the rehabilitation of settlements in the north and south of the country. The state is required to submit a detailed affidavit in response by September 10.

Following the decision, Attorney Dr. Ifat Solel, Deputy CEO and Legal Counsel at Hiddush, expressed satisfaction, arguing that this constitutes a prevention of unlawful budget transfers alongside the approval of necessary funding. On behalf of MK Naama Lazimi, it was stated that this decision clarifies the need for accountability from the State and the Knesset. This is a legal development regarding the authority of Knesset committees to approve extensive budget transfers during recess periods and ahead of elections, an issue at the heart of judicial review of government actions. The High Court's decision emphasizes the delicate balance between maintaining the state's functional continuity and the need to prevent the allocation of controversial resources during periods when the legislature is pending dissolution or is in a prolonged recess.

General information only. This item is not legal advice and does not replace review of the original source.

Back to all legal news

LawFirms.pro

Update or Remove Public Information

LawFirms.pro allows lawyers and the public to submit requests to update, correct, or remove public information for manual review.

Update or Remove Profile