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Matzav

Coalition Showdown: Gafni Forces Delay of $1.5 Billion Judea and Samaria Funding Package

Jun 9, 2026·3 min read

A growing dispute between the chareidi parties and the Religious Zionism faction has led to the postponement of a major government vote on a proposed NIS 1.5 billion development package for communities in Yehuda and Shomron, after United Torah Judaism objected to the plan over what it called unequal budget priorities.

The proposed initiative, which was scheduled for approval at the next cabinet meeting, includes extensive funding for construction, infrastructure, security, and community development projects throughout Yehuda and Shomron. The package is considered one of the largest government investments in the region in recent years.

However, according to a report by Ames, senior figures in United Torah Judaism strongly opposed the proposal, arguing that the government was willing to allocate massive sums for one sector while failing to address the ongoing daycare subsidy crisis affecting thousands of chareidi families.

Party officials reportedly described the situation as “blatant discrimination.” They noted that while the Treasury has resisted advancing a solution for the daycare subsidy crisis, which would require approximately NIS 300 million, significantly larger sums were quickly found for other priorities. Chareidi representatives argued that the government’s budgetary priorities have become increasingly unbalanced and are unfairly harming the chareidi public.

Amid the escalating tensions, Degel HaTorah chairman MK Moshe Gafni held an emergency meeting with Prime Minister Binyomin Netanyahu.

During the meeting, Gafni reportedly demanded immediate clarification regarding the government’s budget policy and pressed for a resolution to the daycare subsidy issue, which coalition representatives say is affecting thousands of families.

According to the report, the confrontation raised concerns about a broader coalition crisis, prompting Netanyahu’s office to intervene.

As a result of the disagreement and fears of further coalition instability, the government meeting that was expected to approve the package was postponed. The session, originally scheduled for this week, has now been pushed off until Thursday to allow additional negotiations between the parties.

Documents prepared for the cabinet discussion outline major investments across Yehuda and Shomron, including transportation and utility infrastructure, public buildings, educational facilities, employment centers, security enhancements, neighborhood expansion projects, and the construction of temporary sites and residential housing.

Coalition leaders are now expected to spend the coming days attempting to reach a compromise that would allow the development package to move forward while also addressing the demands of the chareidi parties regarding daycare subsidies and other budgetary concerns.

The latest dispute highlights ongoing tensions within the coalition as competing factions continue to battle over funding priorities, even as government leaders work to preserve unity and avoid a deeper political crisis.

{Matzav.com}

View original on Matzav