The government has decided to set aside controversial legislation that would largely exempt members of Haredi communities from mandatory military service in order to speed passage of the 2026 state budget and fund the ongoing war with Iran. Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich said the move was necessary to secure tens of billions of shekels in additional defense spending, describing the budget increase as essential for national security.

Ministers are expected to cut most government ministries by three percent while significantly increasing the defense budget. Smotrich said other disputed reforms would also be delayed to ensure swift approval of the budget before the March 31 deadline, after which the government would automatically fall and new elections would be triggered.

Opposition leaders welcomed the decision as a major defeat for the proposed draft exemption law, which had faced widespread criticism from military officials, legal authorities, and reservist groups. Critics argued the bill would preserve inequality in military service and fail to address a manpower shortage, as tens of thousands of ultra-Orthodox men of draft age remain unenlisted following a court ruling that ended their blanket exemption.