Funding Standoff Ahead of Israel’s Oct. 27 Election

Prime Minister Benjamin Netanyahu’s coalition is negotiating an additional 25 billion shekels (about $8.2 billion) for the Israel Defense Forces (IDF) as the country heads into a national election on Oct. 27. The request follows a 15-billion-shekel supplement approved in June, and would raise this year’s defense outlays to roughly 183 billion shekels—about 9 % of Israel’s gross domestic product, one of the world’s highest ratios.

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Israel’s military budget has been strained by almost three years of combat operations in Gaza, Yemen, Lebanon and Iran, a pressure that intensified after the 2023 Hamas attack that sparked the Gaza war. The prolonged engagements have driven a shift toward a more pre-emptive doctrine, prompting the government to seek larger, faster-moving war-time financing.

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• Requested extra funding: 25 billion shekels (? $8.2 billion).

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• Previously approved supplement: 15 billion shekels (June).

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• Coalition funds under debate: about 5 billion shekels in 2026, earmarked for political allies, including the ultra-Orthodox community.

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• Operational impact: Delays in payments to local defense firms—Elbit Systems, Israel Aerospace Industries, and Rafael Advanced Defense Systems—have already been reported, threatening production of tank rounds and other ammunition.

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• Procurement setbacks: Israel missed its slot to order a squadron of Apache helicopters from Boeing, a delay linked to the funding impasse.

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Netanyahu’s office declined comment on the negotiations, as did a spokesman for opposition leader Yair Lapid. Lapid’s camp has signaled willingness to increase defense spending but insists on trimming the coalition-fund allocations to offset budgetary pressure.

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“We face dramatic security challenges that require decisions and actions right now,” — Israel Katz, defense minister

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