After tense days of political wrangling, the coalition standoff finally ended with an agreement reached during a late-night meeting involving Finance Minister Betzalel Smotrich’s representatives, Finance Committee Chairman Moshe Gafni, Coalition Chairman Ofir Katz, and Cabinet Secretary Yossi Fuchs. The parties struck a deal that will allow the long-debated bill granting tax breaks to IDF reservists to move forward.
Under the compromise, the legislation will advance to its second and third readings in the Knesset next week. A new provision will be added, ensuring that reservists earning lower incomes will receive an additional monthly payment of roughly 3,000 shekels, beginning in 2026.
The agreement also paves the way for the Religious Zionism Party to return to coalition voting, signaling a thaw in the recent freeze that had paralyzed key government initiatives.
According to the details of the bill, eligible reservists will receive income tax credits of up to 1,000 shekels per month. The measure is intended as both tangible support and a gesture of national appreciation toward working reservists—men and women who shoulder the dual responsibility of serving the country and supporting their families.
{Matzav.com}
