Israeli Prime Minister Benjamin Netanyahu pledged on Wednesday to release at least 200 million shekels (approximately 54 million dollars) for Arab towns, following accusations of racism stemming from Finance Minister Bezalel Smotrich’s decision to withhold these funds. Netanyahu indicated that the money would be transferred after a review but did not provide details on what this would entail or how long it would take. He stated, "Arab citizens in Israel deserve what all citizens deserve, and I am committed to this. I demand all government ministries adhere to this, and it will be implemented after an assessment to ensure the funds reach their intended targets, Arab citizens of Israel."
At the same time, Finance Minister Bezalel Smotrich insisted during a press conference on withholding the funds. He reaffirmed his previous decision regarding "withholding budget funds allocated for Arab local councils for fear that these funds would ultimately end up in the hands of criminals and terrorists." In response, Arab leaders in Israel regarded the minister's decision as racially motivated. The Qatar Committee of Arab Local Authority Heads in Israel pointed out that the finance minister continues his incitement campaign against the Arab community and its elected leaders. Amr Basharat, the Director General of the committee, noted that funding allocated for essential services and development in 67 Arab local councils is an attempt to rectify years of insufficient budget allocations and narrow the gaps between Jewish and Palestinian communities.