Israel’s Defense Budget to Exceed $34 Billion in 2026

Israeli authorities announced that the defense budget for 2026 will reach a record level, reflecting sustained security pressures and elevated military spending in recent years.

The Ministry of Defense stated that the defense budget will amount to 112 billion shekels, or approximately $34.6 billion, up from 90 billion shekels in an earlier draft.

The framework for the defense budget was agreed upon by Defense Minister Israel Katz and Finance Minister Bezalel Smotrich, as the cabinet began deliberations on the 2026 state budget, which must be approved by March to avoid potential elections.

Katz said the military would continue meeting the needs of combat forces while easing the burden on reserve soldiers, emphasizing security across all fronts.

The increase follows a costly period, as Israel spent tens of billions of dollars on military operations in Gaza and Lebanon during 2024, placing significant strain on public finances.

Smotrich noted that despite its size, the budget is designed to support long-term economic recovery and restore growth momentum.