Israel freezes Charedi education funds and expands tax requirements

Israel’s High Court of Justice has issued an interim order freezing NIS 286 million in coalition funds earmarked for Charedi educational institutions. The court has demanded that the Finance Ministry and the Knesset Finance Committee chairman explain why these transfers should not be canceled entirely. This injunction remains in place while a petition is considered.

Simultaneously, the Israel Tax Authority is expanding requirements for Charedi institutions holding Section 46 approval, which allows donors to receive income-tax credits. Previously applicable only to new institutions, these rules now extend to existing yeshivas and schools.

Under the new regulations, institutions must declare that no students are evading military service or failing to regularize their status with the IDF. They must also submit student lists including identification numbers and ensure students provide documentation such as exemption or discharge certificates. Failure to comply may result in the revocation of Section 46 status, impacting the institutions' ability to fundraise through tax-deductible donations.