Knesset moves 2026 budget forward amid haredi draft showdown

The Knesset advanced the 2026 state budget in its first reading after days of coalition wrangling with ultra-Orthodox parties over the haredi draft law, with a 62-55 vote. Degel Hatorah backed the budget on condition the draft bill passes before the next readings, while Agudat Yisrael opposed. The package includes a large expenditure framework and a raised deficit ceiling, and if all three readings aren’t completed by end-March, the Knesset would dissolve and elections would be called. Prime Minister Netanyahu framed the budget as strengthening security and the economy, while the opposition criticized the concessions to the haredi parties.