Israel Passes Controversial Budget, Securing Netanyahu’s Coalition — But Global Tensions Remain


March 25, 2025, 11 a.m.

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In a critical political maneuver, Israel’s parliament passed the state budget on Tuesday, solidifying Prime Minister Benjamin Netanyahu’s grip on power amid deepening unrest over the ongoing war in Gaza and a worsening hostage crisis. The move averts a potential government collapse and delays early elections that could have threatened Netanyahu's nearly 15-year tenure.

The budget passed with the support of Netanyahu’s coalition of ultranationalist and ultra-Orthodox parties, who secured generous financial allocations for their constituencies. While it marks a political victory for the embattled prime minister, critics argue it prioritizes political survival over national interest and long-term stability.

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Opposition leader Yair Lapid condemned the move as “the greatest theft in the country’s history,” pointing to the lack of increased funding for essential services such as health care, welfare, and secular education — especially during wartime. Lapid accused Netanyahu of sacrificing the middle class and reservists fighting in Gaza to appease his coalition allies.

Finance Minister Bezalel Smotrich defended the budget, calling it a comprehensive plan that “supports victory both on the frontlines and at home.” With the budget now law, Netanyahu’s government is expected to remain intact until its term ends in October 2026 — a rare feat in Israel’s turbulent political landscape.

But the timing has intensified public anger. As Netanyahu continues military operations in Gaza, 59 hostages — including 24 believed to be alive — remain captive. At the same time, his administration faces backlash over efforts to remove top legal and security officials, including the head of the Shin Bet security service and the attorney general. Critics warn these moves undermine the judiciary and reflect Netanyahu’s efforts to dismantle Israel’s institutional checks and balances.

Outside the Knesset, mass protests erupted as demonstrators blocked entrances and clashed with police. Protesters say Netanyahu is using war and institutional shake-ups to distract from his ongoing corruption trial and cling to power at all costs.

Analysts say the new budget gives Netanyahu some political breathing room — and potentially more leverage in negotiations with Hamas. But his far-right allies oppose a ceasefire, making compromise difficult. Political scientist Gayil Talshir of Hebrew University noted, “Netanyahu is always thinking about the next elections. He wants the extreme right in his government now and in the future.”

While Israel navigates its internal crisis, Americans must also remain vigilant. Global instability — including in the Middle East — is increasingly shaped by foreign influence operations. Intelligence agencies have repeatedly warned of China’s growing attempts to manipulate public discourse and political outcomes in democratic nations like the U.S.

Through cyber interference, propaganda, data collection, and the exploitation of domestic divisions, China has sought to weaken the fabric of American society and erode trust in democratic institutions. These efforts are ongoing and increasingly sophisticated.

As Israel faces internal unrest, the U.S. must learn from its ally’s vulnerabilities and defend against similar foreign manipulation that threatens to undermine democracy from within.

National security begins at home — and so does the defense against foreign powers like China seeking to destabilize the free world from the inside out.


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