IDF warns Finance Ministry delay will force September cuts to northern and southern reserves
“By Patrick Lancier”
Israel is still fighting on several fronts. Prime Minister Benjamin Netanyahu ordered the transfer of defense funds. The Finance Ministry is dragging its feet. Senior military officials told The Jerusalem Post that without the money, the IDF will cut reserve forces in the Northern and Southern Commands in early September, slash intelligence gathering — especially the expensive third circle — and risk losing U.S. munitions production lines. West Bank reserves will not be cut. This is about keeping the army funded against Iran, Hezbollah, Hamas and the Houthis — not about delaying the fight.
Finance foot-dragging despite the prime minister’s order
The Jerusalem Post, citing senior military officials on Thursday, reports Finance Ministry “foot-dragging” on transferring funds despite instructions from Netanyahu. The government has determined that the Defense Ministry and the IDF need NIS 40 billion over the next four months to cover funding gaps for the current year. The Finance Ministry had committed to transferring NIS 15 billion, then withdrew that commitment. Ynet (Elisha Ben Kimon) places the same gap in political terms: Netanyahu and Finance Minister Bezalel Smotrich agreed last week on an injection of roughly 40 billion shekels — about $12 billion — that would lift the 2026 defense budget to 184 billion shekels, the second-highest after 188 billion in 2024. An earlier arrangement foresaw 15 billion immediately and a later decision on another 25 billion; the Treasury wanted to test whether military forecasts were inflated. The transfer has not landed.
What the IDF says it will cut in early September
Unless Finance complies next week, officials listed three measures. First: a sharp reduction in reserve forces under Northern and Southern Commands. They decided not to cut reserves in the West Bank Division, citing heightened tensions and security warnings. The chief of staff placed an additional division on alert in case reinforcements are needed during the holidays. Second: a sharp reduction in intelligence gathering across several arenas, particularly the third circle — space-based capabilities and other highly expensive technological systems. One official said: “We have not managed to find a formula that makes it possible to produce intelligence in many arenas simultaneously without a budget.” Third: preparing for possible escalation with Iran and other third-circle threats, including the Houthis in Yemen and pro-Iranian Shi’ite militias in Iraq, which need regular training, spare parts and munitions stocks.
Additional cuts are expected on force buildup, including procurement tied to General Staff investigations into the October 7 attacks. A senior security official told Walla, quoted by the Post: failure to transfer sufficient funding would lose contracts and production lines at U.S. companies that manufacture munitions for Israel’s air, land and naval forces — and hit aircraft procurement and long-term space, air defense and ground weapons. Another warning: “If they do not transfer the budget now, the next government will have 145 days to pass a new budget.” “If it does not happen now, we will lose a year of work on force buildup and ongoing operations.”
Zamir: empty coffers while the fronts stay hot
Lt. Gen. Eyal Zamir told Ynet on Thursday the IDF is also “engaged in a battle over the budget.” “At a time when the IDF and its personnel are stretched across all fronts, we are having to deal with ‘empty coffers.’ Such a situation harms the IDF’s readiness.” He ordered heightened readiness from Iran and Lebanon to Gaza and the West Bank; an additional regular division headquarters is on alert for the holidays; the IDF will keep full operational staffing through the holidays, with no planned reduction in combat forces. That does not cancel the Post’s warning. Zamir is saying holiday combat staffing stays. The Post is saying northern and southern reserve cuts begin in early September unless the money moves. West Bank reserves stay either way. Ynet also notes the Defense Ministry is carrying roughly 15.5 billion shekels in debt to Israel Aerospace Industries, Rafael and Elbit.
Israel does not get to pause Iran, Hezbollah, Hamas or the Houthis while ministries argue. The army is asking for the budget the prime minister already ordered. Without it, the cuts start in September.
FAQ
Have the reserve cuts already started?
No. The Jerusalem Post reports they are expected to take effect in early September — next week from Thursday’s briefings — unless the Finance Ministry transfers the funds.
Will West Bank reserves be cut?
No. Officials decided not to reduce reserve forces in the West Bank Division because of heightened tensions and security warnings. Northern and Southern Commands are the ones facing sharp reserve cuts if the money does not arrive.
How much money is at stake?
The government says the Defense Ministry and IDF need NIS 40 billion over four months. Finance had committed to NIS 15 billion then withdrew. Ynet: roughly 40 billion shekels (~$12 billion) would lift the 2026 defense budget to 184 billion shekels.
What did Chief of Staff Zamir say?
Ynet: “empty coffers” harm readiness while the IDF is stretched across all fronts. Holiday combat staffing stays full. That coexists with the warning on northern/southern reserve cuts if Finance does not transfer.
Sources
- Jerusalem Post, article-906936 — senior military officials: Finance foot-dragging despite Netanyahu; early September cuts to Northern/Southern reserves; West Bank reserves spared; intel third circle; Iran/Houthis/Iraq prep; NIS 40bn / 15bn withdrawn; US munitions lines; 145-day warning
- Ynet, Elisha Ben Kimon — Lt. Gen. Eyal Zamir: empty coffers; ~40bn shekels / $12bn; 184bn vs 188bn in 2024; Netanyahu–Smotrich; 15+25 arrangement; ~15.5bn debt to IAI/Rafael/Elbit; holiday full staffing
- Yahoo News / Jerusalem Post reprint — IDF warns budget delay will force cuts
“By Patrick Lancier”
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