Government set to announce thousands in virus handouts to Israeli families
Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz are pushing a new financial aid package that would see the government cut a check to every Israeli amid the economic downturn accompanying the coronavirus pandemic.
According to Hebrew media reports Wednesday, the NIS 6 billion plan ($1.75 billion) plan is backed by Avi Simhon, the head of the National Economic Council, but faces opposition from Finance Ministry officials.
The plan would see couples with one child receive a one-time payment of NIS 2,000 ($583), which rises to NIS 2,500 ($729) for those with two children, and NIS 3,000 ($875) for those with three or more. Households without children would receive NIS 750 ($218).
The funds would come from social security payments and therefore wouldn’t require formal legislation to be approved.
The Finance Ministry opposes the proposal on the grounds that all Israelis would receive money under the plan, regardless of their income level or whether they were hurt economically by the government-mandated restrictions to contain the virus.
Finance Ministry Director-General Keren Terner Eyal told Channel 12 news a new aid package was being hashed out but said she didn’t know the final details.
The plan is expected to be announced by Netanyahu and Katz at a press conference Wednesday evening at the Prime Minister’s Office in Jerusalem.
The Blue and White party, which is part of Netanyahu’s government, criticized the plan for failing to target those who are in need.
“Any economic support for Israeli citizens is welcome, but it needs to be anchored in a responsible and long-term plan,” Blue and White said in a statement.
It added: “Regarding the grants, Blue and White supports directly transferring money to citizens, but this needs to be done with an emphasis on those whose livelihoods was hurt… we’ll deliberate this later in the government.”
The head of Lahav, Israel’s Chamber of Independent Organizations and Businesses, ripped the new plan.
“It is a surreal decision to give money to people who don’t need it, instead of people who are crying out. The self-employed sector is bleeding. Enough with the cheap populism,” Roee Cohen was quoted as saying by Channel 12. “The streets are on fire. We need real solutions.”
Earlier Wednesday, self-employed Israelis began receiving funds promised them as part of an aid package last week unveiled by the premier and finance minister.
While the two pledged to grant up to NIS 7,500 ($2,190) to self-employed workers hurt by the virus restrictions, many reported receiving significantly less.
Barak Elmish, a private chef, told Channel 12 he received NIS 2,154 ($630).
“They gave us crumbs,” he said.
The rollout of the new aid plans comes amid growing discontent over the government’s handling of the COVID-19 outbreak and the resulting economic crisis, and as Israel appeared poised to return to a nationwide lockdown due to the continued rise in new infections.
According to a Channel 13 poll released on Sunday evening, 61 percent of Israelis disapprove of Netanyahu’s overall handling of the pandemic, and 75% are unhappy with how his government has handled the economic fallout of the health crisis. Only 16% said that they were satisfied with the government’s economic response.
Over the weekend, thousands of people descended on Rabin Square in Tel Aviv to protest the government’s handling of the economic crisis and what they say is insufficient aid offered to small business owners and professionals in the hard-hit entertainment and hospitality industries.
As of Wednesday, 853,843 were out of work, amounting to an unemployment rate of 21%, the Israeli Employment Service said.