Cabinet peers assail far-right Smotrich for holding back funds for Arab community

Cabinet ministers on Tuesday joined a chorus of voices panning Finance Minister Bezalel Smotrich for refusing to release hundreds of millions of shekels budgeted for Arab Israelis, slamming his stance as unjustified and warning of the long-term damage it poses.

The criticism came after Smotrich reiterated to the Kan public broadcaster that he would not release NIS 200 million ($55 million) for economic development in Arab municipalities and that a freeze would remain in place on a higher education program for East Jerusalem residents. Smotrich, leader of the far-right Religious Zionism party, already drew accusations of racism from opposition lawmakers after announcing those moves earlier this week.

Social Equality Minister Amichai Chikli sent Smotrich a letter saying, “There is no justification or logic in denying balancing grants that the authorities relied on in the annual budget.”

Chikli said the funds should be transferred but under “tight inspection,” an apparent nod to Smotrich’s allegation that the municipal funding would end up in the hands of local organized crime groups.

In response to Smotrich’s remarks to Kan, Interior Minister Moshe Arbel warned in a statement that denying the funding to Arab municipalities will cost state coffers more in the long run as the towns will eventually need even more financial support.

“Ending the fiscal year with a budget deficit will lead to the result that next year the authorities will enter recovery plans,” Arbel said. “The state treasury will pay much more than the amount in question. We must all work together to reduce disparities in society and enable the provision of proper municipal services to every citizen in Israel, Jewish and Arab alike.”

There was also criticism from a coalition lawmaker, with Likud MK Tally Gotliv telling Channel 12 that “it is unacceptable to harm citizens, regardless of who they are, and paralyze their daily lives.”

“I will remind you that it is our duty to act in the interest of all citizens,” she said.

Opposition Leader Yair Lapid accused Smotrich of pandering to his far-right voters.

“Smotrich simply wants his base to see that he remains as racist as they like and he abuses Arab citizens simply because they are Arab,” he said. “I am ashamed of this government. I am ashamed that racism has become an official policy of the State of Israel.”

During his interview with Kan, Smotrich asserted that he had discussed freezing the plan to boost academic education for East Jerusalem residents with Prime Minister Benjamin Netanyahu, who backed him.

However, the outlet later cited an unnamed source in Netanyahu’s orbit as stating the prime minister was working to convince Smotrich to transfer the funding.

“As far as we are concerned, nothing is finalized,” the source said and described the freeze as temporary. The source noted that Netanyahu trusts the opinion of National Security Adviser Tzachi Hanegbi, who reportedly told Smotrich of the value of encouraging higher education in East Jerusalem as a tool to reduce the threat of terror.

Smotrich has remained unmoved, telling Kan on Tuesday that “the decision is final, the budget will not be transferred,” meaning the municipal funding and the money for the higher education program.

“If we find real ways to really transfer money to the Arab citizens of Israel, then we will help where necessary,” he said. “A large number of authorities in Arab society have fallen prey to criminal organizations. The funding ends up in the hands of those that cause damage.”

The funds, aimed at boosting the economy, upgrading infrastructure, and fighting crime in Arab communities, were approved by the previous government, which included the Islamist Ra’am party alongside left-wing, centrist and right-wing parties that united in opposition to Netanyahu.

A wave of violent crime has engulfed the Arab community in Israel in recent years. Many community leaders blame police, who they say have failed to crack down on powerful criminal organizations and largely ignore the violence. They also point to decades of neglect and discrimination by government offices as the root cause of the problem.

National Unity party leader Benny Gantz on Monday said Smotrich’s decision not to transfer the money to the Arab municipalities “smacks of racism.”

Unnamed officials in the Finance Ministry have spoken to a number of news outlets in recent days to express their dismay at the decision, with one noting to Channel 13 that there is little oversight over the huge sums of money transferred to ultra-Orthodox municipalities.

Intelligence Minister Gila Gamliel from Netanyahu’s Likud party also called on Smotrich to walk back the decision on the East Jerusalem higher education program.

“Integrating the Arab population into academia has social, economic, and security importance,” the former social equality minister said in a statement Monday.

The East Jerusalem education plan is for a preparatory program (mechina) for Arab students at the Hebrew University of Jerusalem. Smotrich has said he is holding up the plan until the government can deal with what he alleges are “Islamic radical cells in Israeli colleges and universities.”