Likud’s Haim Katz okayed as permanent housing minister to replace UTJ’s Goldknopf

The government has approved the appointment of Likud’s Haim Katz as permanent housing minister, a potential sign that Prime Minister Benjamin Netanyahu does not believe the ultra-Orthodox United Torah Judaism party will return to his governing coalition.

UTJ chairman Yitzhak Goldknopf held the portfolio until June, when he resigned the post amid an ongoing fight over the conscription of yeshiva students.  The following month, Goldknopf’s party, which represents Ashkenazi Haredim, left the coalition entirely in protest.

Shas, the Sephardi Haredi party, subsequently quit the government as well, resigning its ministerial portfolios while remaining part of the coalition.

The Haredi parties are seeking legislation that would enshrine in law sweeping draft exemptions for ultra-Orthodox men, a longstanding practice that the High Court declared illegal last year. Some 80,000 ultra-Orthodox men aged between 18 and 24 are currently believed to be eligible for military service but have not enlisted. The Israel Defense Forces has said it urgently needs 12,000 recruits after nearly two years of fighting Hamas in Gaza.

Katz was initially appointed to the housing position on an interim three-month basis, amid ongoing attempts by Netanyahu to broker a compromise on the conscription issue. His permanent appointment may signal that the coalition doesn’t expect to solve the impasse or bring UTJ back into its fold.

“I thank the prime minister for his trust, and the members of the government for their support,” Katz said in a statement announcing his appointment. “I will do my best to continue the momentum of construction and increase the supply of housing, while removing bureaucratic barriers and improving service to the citizens of Israel.”

A longtime Likud lawmaker who has previously served as welfare minister, Katz received a six-month suspended sentence and a fine of NIS 75,000 (approximately $22,500) in 2022 after reaching a plea bargain in a corruption case. The charges involved allegations of advancing a bill on corporate bond repayment sought by a financial consultant who was a close friend and financial adviser.

Katz was originally appointed as tourism minister when the government took office in late 2022, and still holds that position. Since then, however, his cabinet portfolios have multiplied as Netanyahu’s partners have alternately quit and rejoined the government over various disputes.

Earlier this year, after the far-right Otzma Yehudit left the coalition during a two-month ceasefire in Gaza, Katz was temporarily granted three additional ministries: the Negev, Galilee, and National Resilience Ministry; the National Security Ministry; and the Heritage Ministry.

Since the Haredi parties’ departure this summer, he has again been in charge of four cabinet positions, either on an interim or permanent basis: tourism, housing, health and welfare.

The decision to grant him the bevy of responsibilities has drawn criticism from Netanyahu’s opponents.

“Even the most diligent minister in the world cannot invest effort in four ministries at the same time,” Opposition Leader Yair Lapid posted on X in January, when Katz took over the Otzma Yehudit posts. “Either they’re unnecessary, or it’s blatant disrespect for these ministries.”

Netanyahu’s coalition currently lacks a majority in the Knesset, and he has continued his work to broker a compromise on enlistment. As part of that effort, Knesset Foreign Affairs and Defense Committee chairman Boaz Bismuth is consulting regularly with Haredi leaders to draft a bill that would regulate Haredi conscription and exemptions.

The Knesset returns from a three-month recess in early October. Elections are next scheduled to take place in November 2026.