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MK Dan Illouz Announces Departure from Likud Over Haredi-Related Legislation

7/11/2026, 11:58:33 PM

Illouz’s Exit from Likud

Member of Knesset Dan Illouz is expected to formally announce his resignation from Prime Minister Benjamin Netanyahu’s Likud Party this week, according to Channel 12 news reports. Illouz will not stand in the party’s upcoming primary elections. His departure follows a series of sanctions imposed after he repeatedly defied coalition discipline on bills concerning the ultra-Orthodox (haredi) community.

Legislative Dispute Over Haredi Draft and Daycare Policies

The controversy centers on two pieces of legislation advanced by haredi parties in the governing coalition: the Basic Law: Torah Study bill, which would extend state benefits to haredi draft-exempt individuals, and a separate bill altering Israel’s daycare subsidy system. Illouz has argued that the daycare subsidies bill eliminated the last economic incentive for haredi enlistment, thereby worsening military manpower shortages.

Party Sanctions and Committee Removal

Illouz’s opposition led to his removal from the Knesset’s Economy Committee and the Foreign Affairs and Defense Committee, as well as a month-and-a-half ban on submitting private bills. Coalition leaders also stripped him of his membership on the Foreign Affairs and Defense Committee. No official comment was provided by Illouz’s office when approached for clarification.

Dissent Within Likud and Wider Criticism

Illouz’s exit mirrors the earlier departure of veteran MK Yuli Edelstein, who announced on July 3 that he would leave Likud and form a new party. Both lawmakers have framed the haredi parties as a “danger to the future of the state of Israel,” contending that their presence in the coalition hampers a right-wing, free-market, hawkish agenda.

Verbatim Quotes

  • “That is a very difficult sentence to say,” — Yuli Edelstein, MK
  • “There are also those friends who at this moment are hearing what I am saying in surprise and saying, ‘What is Yuli doing?! We supported him for decades, we would have supported him this time too, why is he doing this?’” — Yuli Edelstein, MK
  • “If the army doesn’t have enough soldiers, then that’s a danger to our ability to protect the state of Israel,” — Dan Illouz, MK
  • “I believe that the ideology that I represent – the right-wing, free market, hawkish ideology – is the one that needs to lead the country,” — Dan Illouz, MK
  • “But I don’t believe that the coalition with the ultra-Orthodox parties is actually something which is helping us advance this ideology,” — Dan Illouz, MK