Palestinian mayors decry Smotrich's 'racist' budget cuts to Arab towns in Israel

Mayors from several 1948 Palestinian towns in Israel are accusing far-right minister Bezalel Smotrich of "racism" after the finance minister revealed financial cuts he will make to the upcoming 2025 state budget, likely to impact the already-disadvantaged community.

Leaders representing Arab towns in Israel say that Smotrich has "sacrificed their community’s economic well-being due to prejudice" after the far-right MK said he intends to make "fiscal adjustments" of 35 billion Shekels ($9.5 billion), a result of Israel's "longest and most expensive war in history" in reference to the deadly military onslaught in Gaza which has killed over 40,000 Palestinians. 

The leader of the National Religious Zionism party made the statements at a press conference on Wednesday, according to The Times of Israel.

Samir Mahamid, the mayor of the Arab-majority own of Umm al-Fahm told the Israeli daily that that the slashes in funds will "bear a dramatic effect" on his community.

"The cuts will cause the reduction of education and welfare programs that have already been implemented, deepening the gaps and exacerbating the cycle of poverty and violence," he told the Israeli daily.

Mahamid went on to accuse Smotrich, as well as fellow far-right minister Itamar Ben-Gvir, of causing "enormous economic and social damage to Arab society and Israeli society as a whole".

The funds, approved by 2021 by the Bennett-Lapid government, were put in place to boost the economic sector, improve infrastructure and reduce violence in 1948 Palestinian towns.

Smotrich told Israeli broadcaster Kan that he is "reconsidering" the transfer of funds as he evaluates his "priorities” for the money. The far-right politician argued that the Netanyahu government is "not beholden" to a coalition promise made by the previous government.

Overall, Smotrich is said to be withholding at least NIS 200 million ($55 million) meant for the development of Palestinian citizens of Israel, The Times of Israel said.

The far-right minister's withholding of funds prompted the National Committee of Heads of Arab Local Authorities to file a lawsuit against him in June, before the High Court of Justice, as the politician’s refusal to hand over the money has led to the cancellation of several initiatives for the community.

Smotrich baselessly claimed that the funds would fall into the hands of "organised crime groups" and would be used to fund "terror activities".

His claim was refuted by the mayor of Mazra’a, Fuad Awad who told The Times of Israel that the budget is intended for "education, for welfare, workers’ salaries, garbage collection and the environment".

Awad said if the funds aren’t handed over by the end of September, Mazra’a will be forced to cut back on several basic services, such as rubbish collecting, after-school programmes and the availability of electricity around the clock.

1948 Palestinians in Israel have been subject to discriminatory and disenfranchising policies over the decades. In June last year, a Central Bureau of Statistics (CBS) report titled "Gaps Between Jews and Arabs" revealed that 53 percent of Arab households are likely to be living in poverty, in contrast with 18 percent of Israeli ones.

Life expectancy is significantly shorter for both Arab men and women compared to their Israeli Jewish counterparts, while Palestinian infants are 2.5 times more likely to die than Israeli ones.

Smotrich, a settler living in the illegal settlement of Kedumim in the occupied West Bank, has a track record of making controversial and incendiary comments concerning Palestinians, whether in Israel, the West Bank or the Gaza Strip.

In July, he called the Palestinians in Israel "an existential threat to the country", despite them being citizens.

An advocate for Israel’s continued assault on Gaza, the finance minister has implied that Palestinians in the war-hit enclave should "starve to death" as a number of Israeli captives in Gaza still remain there.

The finance minister, in Netanyahu’s cabinet since 2022, has threatened to re-occupy southern Lebanon, has refused to transfer Palestinian tax funds to Gazans and has backed proposals to ethnically cleanse the enclave from its residents.