Bezalel Smotrich blocks hundreds of millions in compensation for stranded Israelis, sparking outrage from MKs, airlines, and the public.
Israel’s Finance Ministry has ignited a political and public uproar after announcing it will not allocate hundreds of millions of shekels in compensation to more than 100,000 Israelis left stranded abroad during Operation Rising Lion in June.
Daniel Schwartz of the Budgets Department confirmed that Finance Minister Bezalel Smotrich rejected the proposed payout, insisting that only the Transportation Minister could authorize limited compensation for just two days.
The decision has drawn fierce backlash from Members of Knesset, who argued that the massive flight cancellations were caused by government directives, not airline mishaps. Many affected passengers were forced to pay exorbitant costs — with hotel bills and last-minute flight tickets often double or triple their original price. Some even rushed home due to emergency IDF call-up orders as fighting with Iran intensified.
At the heart of the dispute lies a turf war between the Finance Ministry and the Transportation Ministry over who should foot the bill. The Transportation Ministry pushed for five days of coverage, while the Finance Ministry refused to go beyond two. The proposed payout — about $150 per passenger per day, up to $750 total — would only go to those who could prove they were stranded as a direct result of the conflict.
During a heated Economy Committee session, Transportation Ministry officials blasted the Finance Ministry’s stance:
“Just as you knew how to compensate businesses, you should also compensate citizens who should not have to pay out of pocket for a military action they did not decide upon.”
CEOs of Israel’s major airlines — El Al, Israir, and Arkia — warned that without government intervention, the flood of lawsuits and financial losses could push carriers to the brink of collapse.
MK Vladimir Beliak (Yesh Atid) accused Smotrich of double standards:
“The person who found 3.7 billion shekels for food distribution in Gaza refuses to allocate 250 million shekels to compensate Israeli citizens affected by a government-initiated operation.”
With the standoff deepening, the Economy Committee has urged Prime Minister Benjamin Netanyahu to intervene immediately and spearhead a “fair and appropriate” plan — one that would safeguard both stranded passengers and Israel’s airline industry.
