On Wednesday, the Knesset advanced its first reading of a compensation framework for businesses impacted by the war, and also approved new benefits for reservists.
The compensation framework for businesses is among a series of broad measures advanced by the Finance Ministry to support businesses, employees, and nonprofit organizations impacted by the war. They all require Knesset approval before coming into effect.
Thirteen lawmakers voted in favor of the business compensation framework, three opposed, and two abstained. It will now be brought before the Knesset Finance Committee for further discussion before returning to the plenum for final approval in its second and third readings.
The framework for the businesses is an amendment to the Property Tax and Compensation Fund Law, centering on assisting small and medium-sized businesses. It includes participation in fixed expenses and partial help with wage costs.
The framework also proposes an additional compensation track for businesses that experienced damage to property from missile attacks.
Businesses that experienced damage during Operation Roaring Lion will be eligible for compensation for March and April, which are the currently defined months in the proposal.
The proposal states that the compensation will be adjusted according to the extent of the damage. It will also be calculated based on turnover decline, the level of fixed expenses, and wages paid to employees.
Separately, the plenum on Wednesday approved in second and third readings an amendment to the Student Rights Law aimed at aiding reservists with admission into higher education.
The government bill, which merged several private proposals from lawmakers, passed with 16 lawmakers in favor and three opposed. It allows universities and other higher education institutions to grant admission concessions to candidates who served in reserve duty and calls to take into account the nature, duration, and timing of their service.
The amendment also extends provisions that grant priority for student housing to reservists, soldiers, and victims of the October 7, 2023, Hamas massacre and the subsequent war.
The Reservists Party welcomed the decision, while noting that support must also extend to helping reservists after they begin higher education studies.
“One cannot expect a reservist to log into Zoom from inside Jabalya or Rafah,” the party said, adding that assistance should also include subsidies, make-up classes, and more remote learning options to help students complete their degrees.
Also on Wednesday, the Knesset’s Labor and Welfare Committee approved to advance a separate bill for its second and third readings that would grant employers of reservists a 20% reimbursement for social benefit contributions, which will apply during non-emergency periods as well.
Committee chairperson MK Michal Woldiger said the measure is intended to support reservists, their families, and their employers.
“We will continue to work to provide full support to the reservists themselves, their families, and those who employ them, who are also carrying the burden for all of us,” she told the Knesset panel.
Knesset announces compensation framework for daycares
Details of a compensation framework for daycare centers affected by closures throughout March were also announced on Wednesday. The plan guarantees compensation to daycares and kindergartens that have been closed, with the aim of allowing them to provide refunds to parents who paid in advance.
However, the Finance Ministry noted that the state is unable to directly intervene in contracts between daycare centers and parents, and therefore cannot mandate refunds. The reimbursement will instead need to be carried out directly between the daycares and parents. This framework also still requires Knesset approval.
Meanwhile, the 2026 state budget is expected to be brought before the Knesset for its final readings in the coming days.
The updated budget includes approximately NIS 32 billion in additional funding for the Defense Ministry due to wartime expenses. This addition led to a 3% across-the-board cut to all government ministries.