Israel’s Netanyahu, Allies Pass New Budget with Sweeping Grants for Settlements, Ultra-Orthodox 

Israel's Prime Minister Benjamin Netanyahu speaks during the budget session at the parliament in Jerusalem on May 23, 2023. (AFP)
Israel's Prime Minister Benjamin Netanyahu speaks during the budget session at the parliament in Jerusalem on May 23, 2023. (AFP)
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Israel’s Netanyahu, Allies Pass New Budget with Sweeping Grants for Settlements, Ultra-Orthodox 

Israel's Prime Minister Benjamin Netanyahu speaks during the budget session at the parliament in Jerusalem on May 23, 2023. (AFP)
Israel's Prime Minister Benjamin Netanyahu speaks during the budget session at the parliament in Jerusalem on May 23, 2023. (AFP)

Prime Minister Benjamin Netanyahu’s government on Wednesday passed a new two-year budget, a step that could bring some stability to his coalition and clear the way for it to press ahead with its religious, pro-settlement agenda.

While the budget could buy Netanyahu some quiet inside his coalition of ultra-Orthodox and ultranationalist parties, Israel's most hard-line ever, it also was expected to deepen the divisions in Israel.

Critics have accused Netanyahu of increasing spending on his ultra-Orthodox allies for religious programs that have little benefit for the economy and broader society.

The vote dragged on overnight, with the budgets for 2023 and 2024 finally passing with a 64-56 vote in parliament after daybreak. It followed weeks of tense negotiations between Netanyahu and the parties in his coalition.

“We have received the tools, we're rolling up our sleeves and going to work,” Finance Minister Bezalel Smotrich said after the vote."

The new budget has been criticized for allocating nearly $4 billion in discretionary funds, much of it for ultra-Orthodox and pro-settler parties.

That will include increases in controversial stipends for ultra-Orthodox men to study full time in religious seminaries instead of working or serving in the military, which is compulsory for most secular males.

It also includes more money for ultra-Orthodox schools, which are widely criticized for not teaching students skills like math and English needed in the modern workplace.

The funds also include tens of millions of dollars for hard-line pro-settler parties to promote pet projects through the ministries they control.

Smotrich, a settler leader, has said he hopes to double the population of West Bank settlers in the coming years.

The government’s composition and agenda have deeply divided the country. On Tuesday, several thousand flag-waving Israelis protested outside the parliament building against the budget.

That smaller demonstration over the budget followed months of sustained mass protest against a series of proposals by Netanyahu's government to overhaul the country's judicial system while he is on trial for corruption.

Proponents say the measures are needed to rein in an overzealous Supreme Court, but critics say the plan would destroy the country’s system of checks and balances and compromise Israeli democracy.

That plan has raised concerns overseas but is now on hold. Now that the budget has passed, however, Netanyahu may face renewed pressure from his allies to bring it back before parliament.

Following the budget vote, Netanyahu told Israel’s Channel 14 that it was the “dawn of a new day” and said that the judicial overhaul plan would be revived.



Trump Demurs on US Involvement on Iran, Araghchi Hints it Can Step in to End Fighting

US President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney (not pictured) at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. (Reuters)
US President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney (not pictured) at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. (Reuters)
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Trump Demurs on US Involvement on Iran, Araghchi Hints it Can Step in to End Fighting

US President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney (not pictured) at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. (Reuters)
US President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney (not pictured) at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. (Reuters)

US President Donald Trump declined on Monday to answer what it would take for US to be directly involved in the growing conflict between Israel and Iran, saying he did not want to talk about the issue.

Instead, he continued to press Iran on negotiations on its nuclear program.

“They should talk, and they should talk immediately,” Trump said during a bilateral meeting with the Canadian prime minister during the G7 summit.

Trump added: “I’d say Iran is not winning this war.”

Earlier, Iran’s Foreign Minister Abbas Araghchi appeared to make a veiled outreach Monday for the US to step in and negotiate an end to dayslong hostilities between Israel and Iran.

In a post on X, the website formerly known as Twitter, Araghchi wrote that if Trump is “genuine about diplomacy and interested in stopping this war, next steps are consequential.”

“It takes one phone call from Washington to muzzle someone like Netanyahu,” Iran’s top diplomat continued. “That may pave the way for a return to diplomacy.”

The message to Washington comes as the most recent round of talks between US and Iran was canceled over the weekend after Israel targeted key military and political officials in Tehran on Thursday.