Trump removes obstacles to Israel’s 2025 budget approval

The state budget opportunities for the year 2025 increased by Knesset, the Ministry of Finance sources believed after the meeting in Washington between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

The ambitious plan presented by Trump to convert the Gaza Strip into a region controlled by the United States, and his declared support for Israel sites on regional issues, can dwarf a major political obstacle that has so far stood in the way of approval Leaded by Itamar bin Ghafir until the end of the war in Gaza as part of the hostage deal.

Ben-GVir has already resigned from the government, Smotrich threatened a similar step, but the American vision of Gaza provides them with an ideological response that could allow the alliance to survive. As evidence, Bin Ghafir responded to Trump’s words in an interview with Ghali Israel Radio station and admitted, “The chances of the return of Appleh Judait have increased to the government.” SMOTRICH issued a statement proud that it was right when, “I decided to stay in the government despite my opposition to the deal.”

The threat is still hovering

Trump’s statements about normalization with the Kingdom of Saudi Arabia, without demanding a Palestinian state, are strengthening Netanyahu’s position and facilitated to move in the demands of his conflicting partners. The comprehensive political package suggested by Trump reduces the attractiveness of the Knesset dissolution from Netanyahu’s perspective, and reduces the pressure of the alliance from the right. It also provides him with political achievements to be presented to the voters, before the elections to be held no later than October 2026.

However, Trump will have difficulty resolving the other main challenge on the way to approval of the budget – the silk parties’ request to link the budget to enact a draft law for Yashiva students. Emerging law faced legal opposition, and even Smotrich itself threatened not to support it. Negotiations on this issue are expected to continue until the last minute, with the threat of Knesateet solution in the background if the budget is not approved on time. Under the law, if the budget is not approved by March 31, Israel will go to the elections.

It was published by Globes, Israel Business News – En.globles.co.il – on February 6, 2025.

© Globes Publisher Itonut (1983) Ltd. , 2025.