Israel’s 2026 state budget, finally passed in a dramatic overnight vote, ignited major political uproar after significant funding was directed toward yeshivos and other chareidi institutions.

The budget, the largest in Israel’s history, passed the Knesset after a session that stretched through sirens and repeated interruptions due to missile threats. It includes massive defense spending alongside billions in coalition funds, with hundreds of millions of shekels allocated to chareidi institutions.

But the biggest shock came in the final moments of the vote. In a highly unusual procedural move, coalition members introduced last-minute objections that effectively unlocked previously frozen funds for yeshivos. Confusion in the opposition ranks led several opposition Knesset members to mistakenly vote in favor, resulting in overwhelming approval of the funding provisions.

The funds themselves were not technically new allocations, but rather money that had been held up due to legal concerns, primarily tied to the unresolved issue of military exemptions for yeshiva students and ongoing legal battles.

Hundreds of millions are being directed toward Torah institutions and chareidi schools, even as critics argue that other sectors face cuts or stagnation.

Chareidi parties had made it clear for months that their support for the budget was tied directly to securing funding for yeshivos and preserving the status of full-time Torah learners. Failure to pass the budget by the legal deadline would have triggered the collapse of the government and new elections.

In the end, the coalition held, just barely.