The coalition crisis has come to an end following a meeting between Finance Minister Bezalel Smotrich’s team, Finance Committee Chairman Moshe Gafni, Coalition Chairman Ofir Katz, and Cabinet Secretary Yossi Fuchs. The parties reached an agreement to approve the bill granting tax benefits to reservists.
The bill is set to pass its second and third readings in the Knesset next week. An additional clause will be added to fix the compensation level at approximately 3,000 shekels per month for reservists earning lower wages, starting from 2026.
As part of the agreement, the Religious Zionism Party will resume voting with the coalition.
The benefits package outlined in the bill will include income tax credits worth up to 1,000 shekels per month, representing the state’s contribution in recognition and symbolic appreciation of working reservists - family breadwinners and taxpayers who serve the nation.