Rights9/15/2026

War Damage Compensation Fund Shrinks to Approximately NIS 2 Billion

The state's financial statements for 2025 showed a sharp decline in the assets of the Property Tax Fund, which is used to compensate for direct and indirect war damage. Since the beginning of the war, the fund has paid out NIS 37 billion, and following Operation “Sha’agat HaAri,” an additional NIS 5 billion.

Key facts

•State financial statements for 2025
•Paid out since the beginning of the war: NIS 37 billion
•Following Operation “Sha’agat HaAri”: an additional NIS 5 billion
•Remaining fund balance: approximately NIS 2 billion
•Allocation rate from 2026: 25%

What the Fund Is Intended For

The Property Tax Fund serves as the source of compensation for direct and indirect damage caused by war. It is financed by a portion of the revenue from the tax on real estate purchases in Israel.

How Much Money Remains

From the beginning of the war through the end of 2025, the fund paid out NIS 37 billion. An additional NIS 5 billion was spent following Operation “Sha’agat HaAri.” According to the report, approximately NIS 2 billion remains in the fund.

How Allocations Are Regulated

By law, the basic allocation rate is 15%, but the Minister of Finance, with the approval of the Knesset Finance Committee, may change it. The rate was 25% in 2021, 0% in 2022–2023, 80% in 2024, 100% in 2025, and returned to 25% from 2026. The name of the statute is not specified in the source.

What Is Expected Next

According to the assessment cited in the publication, the government will have to increase transfers to the fund. The source does not cite a separate government decision or legislative amendment; rather, this is a conclusion drawn from the financial report and the anticipated need to replenish the fund.

What this means for you

For residents and businesses seeking compensation for war damage, the report shows that the fund’s available reserves have declined sharply. However, the source does not report the cancellation of compensation or any change in eligibility; the practical consequence may be the need for additional government funding for the fund.

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