The Israeli government is proposing significant reductions in financial assistance to immigrants as part of its wartime budget for next year, which could make many new arrivals ineligible for the support that has long been a hallmark of the country’s immigration policy.
As Israel faces a prolonged conflict in Gaza and Lebanon, the government is working to reduce public spending and raise taxes in order to fund the ongoing war effort, which has drained both military resources and the national workforce. The proposed budget cuts include slashing the financial benefits for immigrants, a move that critics argue could have lasting effects on Israel’s ability to attract new citizens.
Under the new plan, prospective immigrants would have to declare their assets, and those worth more than 500,000 shekels (around $133,000) would no longer qualify for financial support. For those who remain eligible, the government proposes a 10% increase in benefits. These financial stipends, which can amount to over $15,000 for families, help cover living costs during the first few months in the country. Additional benefits for new immigrants include tax exemptions, free language courses, and health coverage.
Although there have been discussions about cutting these benefits in the past, such reductions have rarely been implemented. The current proposal is still subject to approval by Israel’s parliament, with a final vote expected by the end of March 2025.
For some, the proposed cuts raise concerns about Israel’s commitment to encouraging Jewish immigration, or aliyah, at a time when global anti-Semitism is on the rise. Robert Singer, former CEO of the World Jewish Congress, warned that reducing support for new immigrants could undermine Israel’s future growth. “At a time when Israel’s economy requires growth, undermining the support system for new Israelis is not only shortsighted but detrimental to our collective future,” he wrote in the Jerusalem Post.
Some Israeli lawmakers, including Oded Forer of the opposition party Yisrael Beiteinu, have voiced strong opposition to the cuts. Forer, who chairs the parliamentary Committee for Immigration, Absorption, and Diaspora Affairs, argued that reducing financial support could discourage immigration at a time when Israel needs more citizens to bolster its military and economy. “The country needs every Jew who would choose to join it,” Forer said.
Avichai Kahana, director general of the Immigration and Absorption Ministry, also opposed the cuts, citing the rising tide of anti-Semitism around the world. He emphasized that Israel should be especially welcoming to Jews looking to immigrate, particularly in light of recent global tensions.
The wave of immigration following Hamas’s October 2023 attack, which killed over 1,200 Israelis, has led some Jews to reassess their place in the world and seek refuge in Israel. One such individual is Alison Keehn, an American Jew from Montana, who is in the process of applying for aliyah. Keehn, whose decision was fueled by the rise of anti-Semitism and the political climate in the U.S., expressed concern over the proposed cuts, but also acknowledged that some restrictions on benefits might be justified.
The number of Americans applying for aliyah surged following the October 2023 attack, with nearly double the number of applications compared to the previous year, according to the nonprofit Nefesh B’Nefesh. However, the organization has declined to comment on the potential impact of the proposed cuts.
Israel’s Finance Ministry, which is overseeing the budget cuts, defended the changes as necessary to address the country’s growing deficit. A representative from the ministry, Tair Rabukhin, explained that the cuts were designed to protect vulnerable populations while shifting the financial burden onto wealthier individuals.
Immigration to Israel surged after Russia’s invasion of Ukraine in 2022, particularly from Eastern Europe, but the number of new arrivals dropped significantly after the October 2023 attack. Government figures show that while 63,000 people immigrated in the year leading up to the attack, only around 30,500 immigrants arrived in the following year. However, there has been a recent uptick in immigration, which could indicate that those who filed for aliyah in the wake of the attack are now beginning to move to Israel in greater numbers.
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