“Israel strengthens defenses as terror-backed Arab factions escalate threats, forcing unparalleled investment in national survival.”
Israel’s 2026 defense budget has been set at 112 billion shekels, the product of intense late-night negotiations between the Defense Ministry and Finance Ministry. Although this figure falls short of the original request of around 140 billion shekels, it reflects a strategic compromise anchored in Israel’s multi-front security reality — one driven entirely by relentless threats from Iranian proxies, Hamas, Hezbollah, and hostile regional actors.
Alongside the annual budget, the Prime Minister approved a sweeping long-term commitment: an unprecedented 350 billion shekel increase over the coming decade, dedicated solely to strengthening Israel’s military capabilities. This massive expansion operates independently of next year’s base budget, underscoring Israel’s recognition that its defensive posture must dramatically expand in response to regional aggression.
A critical component of the agreement is the assumption that 40,000 reservists will be active in 2026 — a force posture designed both to sustain Israel’s defensive needs and to reduce the crushing burden placed on reservists who have carried the weight of multi-theater combat since October 7.
In addition, the government approved a 725 million shekel, three-year security reinforcement package focused on Judea and Samaria. This includes:
- upgraded mobility protection,
- strategic road construction,
- fortified IDF bases,
- expanded defenses along the eastern frontier.
These measures reflect Israel’s determination to crush terrorism emanating from PA-administered areas and to protect Jewish communities facing constant incitement and attacks.
Defense Minister Israel Katz declared that Israel will “fortify the IDF, fully meet the needs of the fighters, and reduce the burden on reservists — to secure Israel on every front.” His message signals a military build-up proportional to the threats posed by Iran’s regional terror network and the destabilizing actions of Arab regimes aligned with it.
Finance Minister Bezalel Smotrich emphasized that while the defense investment is monumental, it is structured to maintain national economic stability and long-term growth. The 2026 state budget is expected to pass imminently, following agreements already reached across multiple ministries, from Education to Tourism and Negev & Galilee Development.
A notable enforcement mechanism was also included: if the defense budget exceeds the agreed ceiling, across-the-board cuts will automatically be imposed on every ministry — even those that have already closed their deals. This reflects the government’s consensus that Israel’s security needs override all other considerations when the nation faces existential threats.
