Israel weighs sweeping budget cuts before election to salvage failed $1 billion Apache deal

Israel's Finance Ministry is preparing to seek parliamentary approval for emergency across-the-board cuts to government spending just two weeks before the October 27 election, in an unusual move aimed at securing urgent defense funding that could help revive a failed $1 billion deal to purchase 12 Apache attack helicopters from the United States. The ministry is expected to request a special session of the Knesset, Israel's parliament, to approve cuts affecting all government ministries without exception. However, the proposal remains subject to a decision by Prime Minister Benjamin Netanyahu, with officials considering reductions totaling between 1 billion and 3 billion shekels. One possibility being examined is redirecting funds from civilian ministries to rescue the Apache helicopter deal, which collapsed in recent days after Israel failed to sign the purchase agreement and transfer the required funding before the final deadline. The deal fell through despite three extensions granted by U.S. aerospace manufacturer Boeing, as the Finance and Defense ministries remained at odds over funding equivalent to nearly 1 billion shekels. The final deadline expired on October 7. With no signed contract or payment from Israel, Boeing informed Israeli officials that the helicopters would be offered to other customers waiting to purchase them. The state budget currently contains no allocation for the helicopters, meaning that emergency spending cuts would be required if officials determine that the deal can still be salvaged. The planned purchase, estimated at approximately $1 billion, had been in preparation for more than a year before collapsing amid the unresolved budget dispute. The Finance Ministry is now awaiting Netanyahu's decision on the scope of the proposed cuts, as well as legal authorization to pursue such a measure so close to a national election. "We are now waiting for the prime minister's approval and legal authorization to carry out cuts across all government ministries just days before the election," a senior Finance Ministry official said. Two major questions remain unresolved: whether the Knesset can approve an across-the-board spending reduction so close to the election, and whether the government can secure a parliamentary majority to support it. It also remains unclear whether the proposed cuts would cover only an initial payment required to revive the helicopter purchase or the full cost of the deal, estimated at approximately $1 billion. Political opposition could complicate the effort. Several ministers have recently warned that their departments have already exhausted their capacity to absorb further reductions without affecting essential public services. "We have reached a point where further cuts to our ministry's budget would seriously harm citizens," ministers have said. That resistance could make securing approval particularly difficult, especially among ministers whose positions on party lists leave them unlikely to return to the Knesset after the election. The government must now determine whether it can secure both the funding and parliamentary support needed to revive the Apache purchase, after the missed deadline put Israel's planned acquisition of the helicopters in jeopardy.