$4.5 billion funding approved by PM Netanyahu to rebuild northern Israel after extensive war damage

Northern Israel has taken an enormous hit over the last two-and-a-half years of war, beginning on October 8, 2023, when Hezbollah entered the conflict a day after the Hamas-led attack on Israel.

On Tuesday, Prime Minister Benjamin Netanyahu announced that the government had approved a special fund to repair and rebuild the northern border communities, consisting of dozens of projects with a combined budget of NIS 13 billion ($4.5 billion).

Tens of thousands of residents were evacuated and spent months living in hotels in central Israel. Thousands of children were placed in alternative educational settings, and many adults faced challenges securing temporary employment.

The region has also suffered significant physical damage from Hezbollah missile and rocket attacks, as well as fires that have burned through wooded areas and agricultural land after being ignited by hot debris from intercepted rockets. Thousands of dunams have burned, and dozens of buildings – including private homes, schools, and businesses – have been damaged or destroyed. Rockets and drones capable of causing further destruction continue to fall on these communities on an almost daily basis.

“What the Government approved today are dramatic decisions to strengthen the North,” Netanyahu said. “We are talking about the area from the Lebanese border line, nine kilometers south. This is an area that is crying out for development, and it is receiving it, first and foremost, through the strengthening of communities, infrastructure, and housing, as well as through an additional component, fortification. (This) is not the sole component of security, nor is it the foundation of security, but it is an addition to security in the major struggle we are waging against Hezbollah, and we will succeed in it.”

He went on to explain that the new funding will be added to a previous round of projects budgeted at NIS 7 billion, many of which are already underway. He said this would help ensure that tourists return to visit the region in large numbers, and that many people are also expected to move there to live, similar to what has already occurred in rebuilt areas in the Gaza envelope following rehabilitation efforts there. The government’s stated goal is for 100,000 people to be living in the area.

Despite the large aid package announced by Netanyahu at the meeting, northern mayors and residents reportedly complained that the gathering was treated almost as an afterthought, with none of them invited to hear the announcement in person. Most of the government ministers scheduled to attend did not show up, and Netanyahu himself arrived several minutes late.

Only a small number of ministers were present, including Avi Dichter, minister of Agriculture and Food Security; Knesset Member Ze’ev Elkin; Heritage Minister Amichai Eliyahu; and Ofir Sofer, minister of Aliyah and Integration.

Gadi Eisenkot, who leads the opposition Yashar Party and is expected to run for prime minister in the next election, posted a rebuke on 𝕏, saying: “The residents of the north deserve leadership that will see them and take care of them.”

However, there was some optimism among residents of northern Israeli communities following the announcement, even as they continue to cope with Hezbollah attacks and economic uncertainty. Some communities further south of the border reportedly said that some of the funding would likely flow to them indirectly through jobs and infrastructure improvements that would benefit the wider northern region.