Yuli Edelstein
Yuli EdelsteinTPS

Tensions escalated within the Israeli coalition on Wednesday as members pointed fingers at Yuli Edelstein, Chairman of the Foreign Affairs and Defense Committee, for derailing ongoing negotiations over the contentious draft law. Coalition officials accuse Edelstein of presenting what they described as “draconian” demands, effectively ending any chance of reaching a compromise with the haredi parties.

According to a senior official involved in the talks, haredi factions had, for the first time, expressed a willingness to accept specific recruitment targets and a system of sanctions for non-compliance. However, Edelstein’s hardline conditions rendered the proposed legislation unworkable.

At the center of the dispute is Edelstein’s insistence on sweeping penalties, even in cases of near-complete compliance with recruitment goals. While negotiators had floated a tiered sanctions plan—suggesting a 20% budget cut for yeshivas that meet 90% of targets and a 40% cut for 80% compliance—Edelstein reportedly demanded full budget cancellations for any outcome below 95%.

In addition to financial penalties on religious institutions, Edelstein proposed a broad suite of individual sanctions. These included revoking tax credits for working women, eliminating housing discounts, canceling driver’s licenses, restricting international travel, and scrapping property tax benefits and housing programs. The list also mentioned taxing first-time homebuyers and denying subsidies for higher education, student housing, and public transportation.

Perhaps most controversially, the proposal also included what was described as a “constant risk of arrest,” further intensifying haredi objections.

In the wake of the failed negotiations, Rabbi Dov Lando, a senior spiritual leader of the Lithuanian haredi community, instructed Knesset members from the Degel HaTorah faction in UTJ to support dissolving the Knesset—a move that could further destabilize the coalition.