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Shas Party Threatens to Block 2026 Budget Over Haredi Food Voucher Exclusion

12/9/2025, 5:44:23 AM

Core Event: Budget Standoff Over Haredi Support

The Shas party, led by MK Aryeh Deri, has announced it will not support Israel's 2026 state budget unless the Finance Ministry reinstates funding for a food-stamp program benefiting low-income Haredi children. This program, valued at NIS 277 million (approximately $86 million), was initially promised as part of a coalition agreement in the 2025 budget. Deri's stance is a direct response to what he describes as the "deliberate exclusion" of Haredi children from essential support, which he argues is inequitable compared to assistance provided to other groups, such as Arab children.

Background & Context: Coalition Agreements and Budgetary Promises

The controversy arises from a coalition deal that included provisions for the food-stamp program, which previously aided around 400,000 families across various sectors, including immigrants, the elderly, and Haredim. Deri claims that the Finance Ministry has altered the eligibility criteria, effectively excluding ultra-Orthodox families from receiving these benefits. The Shas party, along with Degel HaTorah, the non-Hasidic faction of the United Torah Judaism party, has also demanded that the government formalize exemptions for Haredi yeshiva students from military service as a condition for their support of the budget.

Implications of Budget Failure

If the Knesset does not approve the budget by the end of March 2026, it will automatically dissolve, leading to early elections. This scenario could shift the political landscape significantly, as elections would be moved from October to June 2026. The potential for a budget impasse raises concerns about the stability of Prime Minister Benjamin Netanyahu's government, which relies on the support of ultra-Orthodox parties.

Official Statements & Responses

In a faction meeting, Deri stated, “Shas will not support the budget as a protest against the deliberate exclusion of Haredi children from the food stamp program.” He emphasized the importance of equitable support, asserting, “It is unacceptable that a poor Haredi child would not receive the minimum support as a poor Arab child does.” The Finance Ministry has not publicly responded to these allegations regarding the exclusion of Haredi families from the food-stamp program.

Criticism & Opposition

Critics of Shas's position argue that the party is leveraging the budget process for political gain, potentially jeopardizing essential services for all sectors of society. They contend that the focus on Haredi exemptions and funding could detract from broader economic needs and fiscal responsibility.

Conflicting Reports & Gaps

While Deri claims that the Finance Ministry has changed eligibility criteria to exclude Haredi families, there is no official confirmation of these changes from the ministry. Additionally, the exact number of families affected by the proposed exclusion remains unclear, leading to discrepancies in the narrative surrounding the budget's implications.

What's Next: Political Maneuvering Ahead

As the deadline for the budget approaches, negotiations between Shas, Degel HaTorah, and the Netanyahu government are expected to intensify. The outcome will not only determine the fate of the 2026 budget but also the stability of the current coalition government.