Israeli Prime Minister Benjamin Netanyahu clarified on Wednesday that funds earmarked for Arab municipalities will be allocated as intended, serving Arab citizens, but under evaluation and supervision. His remarks followed Finance Minister Bezalel Smotrich’s controversial decision to suspend 200 million shekels (around $53.81 million) meant for Arab municipalities and Palestinian educational programs in East Jerusalem. Smotrich had voiced concerns that these funds could inadvertently support “criminal organizations” within Arab communities. This allocation had been designated for scholarships helping low-income Palestinian residents of East Jerusalem attend prep classes at the Hebrew University and two other city colleges. Yair Lapid, the opposition leader and former Israeli prime minister, decried Smotrich’s action as “racist.” Netanyahu’s office emphasized its dedication to the advancement and well-being of all citizens—Jews and Arabs.
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