The Israeli military has recently distinguished itself through a series of critical operations, including responses to the October 7, 2023, Hamas attack, the subsequent Gaza War, and ongoing exchanges with Hezbollah in Lebanon. These actions, coupled with instability following the fall of Bashar Assad in Syria, have culminated in the current war with Iran.

Escalation of Conflict with Iran

Since the commencement of Operation Epic Fury and Operation Roaring Lion one month ago, Israeli airstrikes have targeted and eliminated Iran’s Supreme Leader, Ayatollah Ali Khamenei. Numerous other high-ranking officials within the theocratic regime and its military, many responsible for authorizing terror attacks against Israeli civilians, were also reportedly neutralized.

Record Budget Approval Amidst Conflict

The Israeli Knesset approved the budget for fiscal year 2026, totaling approximately $271 billion. Prime Minister Benjamin Netanyahu’s administration framed the budget as beneficial for Israeli citizens, allocating funds for defense, welfare, education, health, reservists, and border communities.

Coalition and Opposition Reactions

Finance Minister Bezalel Smotrich lauded the budget, which passed with a 62-55 vote on Monday, calling it one that “takes care of everyone and fights the cost of living.” Smotrich argued that voting against it meant voting against Israeli security and tax relief for working citizens, adding that the military funding would help “dramatically improve our geopolitical and diplomatic standing.”

The marathon debate preceding the vote was extended due to opposition filibusters and intermittent air-raid alerts caused by Iranian missile attacks. In a surprising turn, some opposition lawmakers later claimed they voted for certain funding allocations by mistake, drawing mockery from the majority coalition.

Opposition Outcry and Haredi Controversy

Opposition leaders strongly criticized the substantial allocation toward defense and projects favored by Netanyahu’s administration. Opposition leader Yair Lapid denounced specific funding for ultra-Orthodox institutions as the “greatest theft in the history of the state.”

Lapid vowed to reverse what he termed payoffs to special interests in the “next government.” He specifically targeted those who allegedly receive funding due to “proximity to the trough” and those who dodge military service, promising aggressive recovery of state funds from the latter group.

The budget passage required Netanyahu to withdraw a bill that would have granted the Haredim, an ultra-Orthodox community often criticized for refusing military enlistment, a permanent exemption from service. Despite the withdrawal, the Orthodox parties remained aligned with Netanyahu, securing funding for their institutions.

Political Deadlines and Stability

Netanyahu was keen to pass the budget before the March 31 deadline, which, if missed, would have triggered new elections. Smotrich emphasized that the budget ensures the current right-wing government will serve its full term to complete its mission in security, the economy, and judicial reform.