Rights9/16/2026

After-School Program Operators Petition Against NIS 90 Million Budget Cut

Organizations operating the “Nitzanim” after-school programs petitioned the Jerusalem District Court against the Ministries of Education and Finance. They are seeking to overturn the deduction of approximately NIS 90 million from funds allocated to local authorities and warn of the risk of debt, reduced services, and program closures.

Key facts

•Court: Jerusalem District Court
•Deduction amount: approximately NIS 90 million
•Meal rate: approximately NIS 16 per meal
•Calculation period: the 2021/22–2023/24 school years
•The case number and filing date are not stated in the source

Why the Funding Was Reduced

At the beginning of the current school year, the Ministry of Education deducted approximately NIS 90 million from local authorities’ budgets for the “Nitzanim” program. The ministry believed that in previous years, many local authorities had spent less on feeding the children than the set rate—approximately NIS 16 per meal—and that they must reimburse the difference. The calculation concerns the 2021/22–2023/24 school years.

Where the Savings Were Directed

According to the local authorities and operators, they managed to reduce food purchasing costs without compromising the quality or size of the meals. The money saved was directed toward staff salaries and additional enrichment activities because, they claim, these items were insufficiently budgeted. The operators also argue that the reallocation of funds appeared in reports reviewed by the Ministry of Education’s accountants and did not increase their profits.

What the Petitioners Are Seeking

Private companies, nonprofit organizations, and municipal organizations operating after-school programs are seeking to overturn the deduction. They claim that they acted in good faith and transparently, in accordance with a practice of reallocating funds that was known to the ministry. They estimate that if the local authorities pass the deduction on to the operators, the programs could accumulate debt, scale back their operations, or close; the court’s decision is not stated in the source.

The Ministry’s Position

The Ministry of Education stated that the local authorities are the entities that enter into contracts with the operators and that the ministry itself is not a party to those contracts. It claims that the final accounting was conducted in accordance with the rules of the tender process, following lengthy discussions and with an opportunity to submit objections and documents. Local authorities that requested payment plans were granted them; however, the Federation of Local Authorities in Israel claims that the deduction actually implemented does not conform to the agreements reached.

What this means for you

For families, the dispute creates a risk of reductions in enrichment activities, staffing, or the availability of “Nitzanim” after-school programs, although the source does not report that such changes have already occurred. The direct financial implications for any particular family will depend on the decisions of its local authority and the agreement with the operator. The legal outcome of the dispute has not yet been stated in the material presented.

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Case analysis based on court rulings