The Interior Ministry's director-general announced plans to seek the withdrawal of state funding from the Arab city of Arraba after its mayor, Ahmad Nassar, referred to Israel as an 'enemy' during a recent speech. The remarks, made at a ceremony commemorating the October 2000 riots, have sparked strong condemnation from government officials, who argue that such statements are unacceptable for an elected official. The ministry is reviewing its activities with the municipality and may recommend halting budget support until the issue is publicly clarified. The incident has intensified tensions between the government and Arab municipal leadership.