Israel’s Finance Minister Freezes Funding for Arab Municipalities, Palestinian Education in Jerusalem

Israeli Finance Minister Bezalel Smotrich has halted financial support for Arab municipalities within Israel and Palestinian higher education initiatives in East Jerusalem. Speaking to state-owned Kan Reshet Bet Radio, Smotrich, an influential figure in Prime Minister Benjamin Netanyahu’s far-right coalition, labeled the funding from the prior government as a “political pay-off” and raised concerns that the funds might support “criminal organizations” in the Arab community. He’s also suspended an additional 200 million shekels ($53.72 million) intended for scholarships at the Hebrew University in Jerusalem and other local institutions for Palestinian students from East Jerusalem. Opposition leader and former interim Prime Minister Yair Lapid branded the move “racist” on social media. Meanwhile, Ha’aretz newspaper revealed that the Shin Bet security agency’s chief had urged Smotrich to retain the scholarship funds, citing the positive influence of higher education on curbing violence in East Jerusalem. The status of East Jerusalem, annexed by Israel following the 1967 Middle East war, remains contested internationally.