The Ministry for Development of the Negev and the Galilee, led by Interior Minister Aryeh Deri (Shas) offered to subsidize day camps for thousands of Binyamin-region students.
In the agreed-upon arrangement, the Ministry will subsidize day camps for 2,000 of the region's neediest families.
For some of these families, the subsidy will cut the cost of camp in half.
Many Israeli parents struggle to pay for or find childcare during the summer months.
"Minister Deri, out of sensitivity and a desire to help parents who are financially struggling, decided to make a difference and lower the costs of summer camps for many parents," Binyamin Regional Council Head Avi Roeh said. "I thank Minister Deri and his staff for successfully bringing about this change and subsidizing summer camps for so many people in my region."
Earlier this month, the Knesset approved a price cap for afternoon programs and instituted new standards for them.
However, Israel's disabled population is still waiting for an acceptable rise in their stipends. The government has offered a significant raise, but that still leaves disability stipends low., at less than minimum wage - even for a person who is considered 100% disabled and therefore cannot work.