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Israeli gov’t approves additional funding to boost north after 2.5 years of war with Hezbollah

“I love the Galilee,” said Israeli Prime Minister Benjamin Netanyahu. “It is an integral part of our homeland that we must protect and develop.”

Israeli Prime Minister Benjamin Netanyahu during a special Cabinet meeting in the northern city of Nof HaGalil, June 11, 2026. Photo by Haim Zach/GPO.
Israeli Prime Minister Benjamin Netanyahu during a special Cabinet meeting in the northern city of Nof HaGalil, June 11, 2026. Photo by Haim Zach/GPO.

The Israeli government on Thursday unanimously approved a regional development plan for the country’s north worth approximately 4 billion shekels ($1 billion) , expanding efforts to strengthen the Galilee after more than two and a half year of cross-border hostilities with Lebanese Hezbollah.

The plan, approved during a special Cabinet meeting in the northern city of Nof HaGalil, will run from 2026 to 2030 and focuses on housing, employment, transportation, healthcare, education, tourism and security in the cities of Acre, Afula, Karmiel, Nazareth, Nof HaGalil, Safed and Tiberias.

The initiative followed a separate government decision approved last week that allocated some 18 billion shekel ($6 billion) to northern border communities. Together, the two plans represent about 22 billion shekel ($7 billion) in government investment.

Israeli Prime Minister Benjamin Netanyahu described the initiative as a “sacred national mission of the highest order.”

“Through a collaborative effort, we are delivering a huge package to our core cities,” the premier said. “We are giving them a huge boost and a powerful reinforcement that will drive momentum and development—this is our vision.”

“I love the Galilee. It is an integral part of our homeland that we must protect and develop,” he added. “What we did in the south, we will do in the north; we will restore security to the north, and it will prosper more than ever before.”

Israeli Finance Minister Bezalel Smotrich said the investment would transform the north into a “national growth engine.”

“We are not just rehabilitating the north; we are building a new and promising future for it,” stated Smotrich. “This is not merely about repairing war damage, but a profound paradigm shift toward the Judaization of the Galilee and turning it into an attractive magnet for all citizens of the State of Israel.”

The economic proposals of the plan focus on expanding employment opportunities in sectors including high-tech, semiconductors, robotics, defense industries and agri-food technology. The approved plan also includes scholarships, professional training programs and grants for businesses adopting artificial intelligence.

The housing component includes financial incentives for families relocating to the north, accelerated construction of new neighborhoods and urban renewal projects to revitalize city centers.

Additional funding will support healthcare services, including efforts to recruit doctors and mental health professionals, while education initiatives will focus on science and technology programs, research laboratories and innovation centers.

Investments in transportation are expected to improve roads and public transit networks across the Galilee. The plan also allocates resources to enhance personal security by funding municipal enforcement, technological monitoring systems and neighborhood emergency response teams.

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