The government unanimously approved a proposal to encourage countries to recognize Jerusalem as Israel's capital and relocate their embassies to the city. The initiative, led by Foreign Minister Gideon Sa'ar and Deputy Prime Minister and Justice Minister Yariv Levin, includes allocating funding to support embassy relocations and to promote diplomatic activity in Jerusalem.

The plan offers incentive packages such as financial participation in establishing or moving embassies, along with housing and planning assistance. It also aims to expand cooperation and increase official meetings and delegations held in the capital.

The move follows ongoing diplomatic efforts and has received strong backing from the United States. The United States has begun transferring its diplomatic assets and personnel from Tel Aviv to Jerusalem, and Israel recently approved land allocation for a permanent United States embassy. Paraguay and Fiji have already relocated their embassies, while Ecuador opened a representative office in the city last year.