Two activists from the Changing the Direction protest group were arrested after demonstrating outside the Religious Zionist Party offices in Jerusalem, highlighting growing public anger over the government's handling of the cost of living and budget priorities. Protesters accused Finance Minister Bezalel Smotrich and the ruling coalition of prioritizing political interests and funding for specific groups over broader economic recovery and citizen welfare.

The arrests come amid rising prices for housing, food, and services in Israel, fueling widespread discontent and intensifying debates over the 2026 state budget. The budget has exposed deep divisions within the government, with opposition lawmakers and critics warning that current allocations could burden the middle class and undermine long-term growth.

A major point of contention is funding for the ultra-Orthodox community, including subsidies for religious institutions and continued military draft exemptions, which has led to legal challenges and threats from coalition partners. The High Court of Justice recently froze a significant budget transfer to ultra-Orthodox schools, demanding further justification from the state.

With the budget still facing multiple votes and the risk of early elections if it fails to pass, Israel's political landscape remains tense, marked by ongoing protests, coalition disputes, and economic uncertainty.