Down, but not out? Yair Lapid
Down, but not out? Yair LapidFlash 90

Finance Minister Yair Lapid has refused to transfer government funds for infrastructure in Jewish communities in the Judea-Samaria region in a meeting this morning with senior ministers.

Lapid's refusal caused the meeting - attended by Prime Minister Binyamin Netanyahu, Defense Minister Moshe Ya'alon, Economics Minister Naftali Bennett, Housing Minister Uri Ariel and Transportation Minister Yisrael Katz - to break down entirely Wednesday morning.

In a statement, Lapid said he refused to allow "money that should go to Kiryat Shmona and Be'er Sheva" to be transferred to "isolated settlements, and to pave roads to Yitzhar and Tapuach, moves which at this time cause damage to Israel."

"I support building in Jerusalem and support paving roads to Kiryat Shmona, but not to isolated settlements," he added, noting that the proposed budget added up to some 300 million shekels (just over $80 million).

Kiryat Shmona and Be'er Sheva are cities in the Galilee and Negev "periphery" respectively, while Yitzhar and Tapuach are towns in Samaria located outside of the so-called "major settlement blocs".

The move to transfer much-needed funds to bolster Israeli infrastructure in Judea and Samaria was first reported Sunday, when it was revealed that Netanyahu had taken the decision to end an unofficial building freeze on areas "beyond the Green Line."

The move included instructions for the building of about 660 homes in Ramat Shlomo, in northern Jerusalem, and about 400 more in Har Homa, in the capital's southern section.

In addition, Netanyahu gave the go-ahead for infrastructure projects in Judea and Samaria that are needed for reasons of security and safety.

The move was first reported Sunday on Channel 2, and is seen as a bid to strengthen the alliance with the nationalist wing of the coalition, and on the urging of Economics Minister Bennett - as well as a possible attempt by the PM to strengthen his position among his party's right flank in upcoming Likud primaries.

Lapid's reference to the timing of the announcement comes amid increased pressure on Israel internationally, as well as reports of a supposed "crisis" in relations with the US.

This is not the first time Lapid has attempted to prevent funding reaching Judea and Samaria. In February the Yesh Atid party head took similar measures, and did the same two months later - when roughly 563 million shekels ($162,173,276) earmarked for the Housing Ministry were cut until further notice.