Finance Ministry rejects compensation for Israelis stranded abroad
Israel’s Finance Ministry has announced that it will not allocate hundreds of millions of shekels in compensation for over 100,000 Israelis who were stranded abroad during Operation Rising Lion in June.
Daniel Schwartz, a representative from the Budgets Department, explained that Finance Minister Bezalel Smotrich decided to oppose the compensation plan, adding that the Transportation Minister has the authority to set limited compensation for just two days.
The decision sparked strong opposition from MKs, who pointed out that the flight cancellations were a result of government directives. Many passengers paid out of pocket for lodging and alternative flight tickets, often at double or triple the original price. Some passengers even rushed back to Israel due to emergency call-up orders issued to them due to the fighting with Iran.
The dispute between the Finance Ministry and the Transportation Ministry has been ongoing, focusing on who should bear the cost of compensation. The Transportation Ministry demanded compensation for five days of stay, while the Finance Ministry insisted on limiting compensation to just two days. The estimate is that each passenger would receive about $150 per day, up to a ceiling of $750, provided they could prove they were stranded abroad due to the fighting.
During a discussion in the Economy Committee, officials from the Transportation Ministry criticized the Finance Ministry’s decision. “Just as you knew how to compensate businesses, you should also compensate citizens who should not have to pay out of pocket for a military action they did not decide upon,” they said. CEOs of the airlines – El Al, Israir, and Arkia – warned that the lack of government compensation could lead to the collapse of Israeli airlines, given thousands of lawsuits and significant financial damage.
MK Vladimir Beliak (Yesh Atid) accused Smotrich of hypocrisy: “The person who found 3.7 billion shekels for food distribution in Gaza refuses to allocate 250 million shekels to compensate Israeli citizens affected by a government-initiated operation.”
At the end of the discussion, the Economy Committee called on the Prime Minister to intervene immediately and lead a “fair and appropriate” compensation plan that would provide a solution for both passengers and airlines.
