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Smotrich defies AG, vows to maintain haredi daycare subsidies

Israel's finance minister accuses government lawyers of bias against the ultra-Orthodox community and overstepping their authority.

Finance Minister Bezalel Smotrich speaks in Tel Aviv, March 26, 2024. Photo by Avshalom Sassoni/Flash90.
Finance Minister Bezalel Smotrich speaks in Tel Aviv, March 26, 2024. Photo by Avshalom Sassoni/Flash90.

Israeli Finance Minister Bezalel Smotrich has announced his intention to continue subsidizing day care for families of ultra-Orthodox men who dodge the draft, despite objections from Attorney General Gali Baharav-Miara.

The dispute centers on funding for haredi men of military draft age, underscoring ongoing tensions over ultra-Orthodox integration into the workforce and military service.

Smotrich fired off a detailed letter to Deputy Attorney General Gil Limon and Finance Ministry Legal Adviser Assi Messing. In it, he argued that canceling the daycare budget would severely hamper ultra-Orthodox women’s entry into the workforce, impede the sector’s job market integration, condemn it to poverty, and overstep the government lawyers’ authority.

Smotrich expressed outrage that the decision was made between government lawyers without consulting him as finance minister.

“It’s astounding that you conduct discussions, exchange correspondence, and make far-reaching budgetary and economic decisions among yourselves without even considering it appropriate to involve the finance minister or seek his position. This is a state within a state,” he wrote.

Smotrich contended that discussions without his involvement led to an erroneous decision.

“The premise for this decision—that daycare subsidies are given to support the father’s Torah study—is fundamentally flawed, based on a misinterpretation of the Supreme Court ruling on yeshivah funding after the conscription plan expired. This assumption is baseless.

“The subsidy has nothing to do with the father’s Torah study. It’s meant to incentivize mothers to enter the workforce by helping finance childcare,” the letter said.

“The subsidy’s declared goal is to promote ultra-Orthodox women’s integration into the job market. The government decided to extend it to mothers whose husbands study in yeshivah and aren’t home. This practical decision recognizes a simple reality: In ultra-Orthodox families where fathers study Torah, mothers often stay home with children, even at the cost of poverty and a low standard of living.”

The finance minister argued that daycare subsidies have led to many haredi women entering the workforce.

“It’s been an overwhelming success. The past two decades have seen a dramatic rise in ultra-Orthodox women’s employment. One would have to be blind not to see the positive impacts on the economy, ultra-Orthodox society, and the nation as a whole,” he wrote, contending that cutting daycare subsidies would deal a severe blow to the economy.

Smotrich demanded that the legal advisers “immediately retract your fundamentally flawed opinion. Allow me to continue my economic policy supporting growth and ultra-Orthodox women’s workforce integration. Refrain from illegally and unreasonably sabotaging it and the economy. By virtue of my authority as finance minister, I’m ordering the continuation of daycare subsidies, per Industry, Trade and Labor Ministry criteria.”

Anticipating a High Court challenge, Smotrich wrote, “If you believe my decision is illegal, you’re free to petition the Supreme Court. There, I’ll demand independent representation” rather than have the Attorney General’s Office represent his ministry.

The finance minister concluded with sharp criticism, “It’s hard to escape the feeling that regarding the ultra-Orthodox public and its budgets, you’re repeatedly driven by a hostile agenda that seeks every possible way to harm and obstruct. If only you’d invest a fraction of the energy you spend trying to cut ultra-Orthodox budgets in helping me prevent state funds from leaking to criminal organizations, in fighting black market capital, and more.”

Originally published by Israel Hayom.

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