The bluff and the danger behind the new real estate benefits for reservists
The government has announced an expansion of housing benefits for reservists, including 20,000 new units and increased lottery priority. However, critics argue these measures fail to address the diverse needs of reservists and serve as a political tool that, as the Supreme Court previously noted, benefits only a select few.
"Over the years, the number of reservists who truly bear the burden has been decreasing. Given the increased physical, economic, and social costs involved in service, it is appropriate that society's appreciation should be expressed not in empty words, but in real compensation."
The person who wrote these words in 2012 is Supreme Court Justice and current President Isaac Amit. In a long ruling, he rejected a petition against the legality of benefits for reservists in public tenders. Amit quoted a song by Ariel Horowitz: "At the top it says 'Dear Reservist', in the middle your world is collapsing, and at the bottom 'Sincerely, Captain Sigal Nachmias'", emphasizing that the Israeli ethos has always been "when they call, we come, even without knowing why."
After three years of war, with tens of thousands of reservists serving hundreds of days, benefits are expanding. But the consensus around compensation must be based on two conditions: the system must recruit only those it truly needs, and these benefits must not become an empty tool in the hands of politicians.
The problem is that the numbers do not add up
This week, the Prime Minister, the Minister of Finance, and the Minister of Housing presented an expansion of housing benefits. It was clear that these figures were mainly for election propaganda, lacking real budgetary backing.
According to the plan, in 2026–2027, about 20,000 housing solutions will be added, including 16,000 apartments at a target price and 4,000 plots for private construction. Priority for reservists in lotteries will increase from 50% to 75%. Additionally, in National Priority Area A, a full exemption from land payment will be granted.
The problem is that these quantities are unrealistic. The state has not been issuing tenders efficiently for over six months, and developers are no longer enthusiastic about buying land at any price.
The number of eligible reservists is no longer negligible
There is a fundamental problem: not every reservist wants to buy an apartment, and not everyone wants one in the periphery where the state subsidizes tenders. Many young people consciously choose not to tie their fate to a mortgage. By directing benefits only toward apartments and construction plots, the state harms the reservists' freedom of choice.
Furthermore, the government is challenging the legal system. Amit’s 2012 ruling contained a firm reservation: the rejection of the petition was based on the "negligible number" of beneficiaries (about 50 people). The judge warned that the court's door remains open if the implementation expands. A 75% quota is a contentious issue, especially since many apartments are in Arab or Haredi areas.
Ultimately, the state offers a large benefit, but only if the reservist wants the specific product the state decided to subsidize. As Amit wrote 15 years ago: "It is regrettable that the government chose to provide a marginal and problematic benefit in public tenders. This not only fails to benefit all reservists but leads to the fact that only a few 'take the whole pot'."
Stars of the week
Excellent: Directors will not be able to vote from home
Roi Kahlon, head of the Government Companies Authority, has made a bold move: forbidding directors from participating in meetings remotely. This practice, common since 2020, had become an easy way out for those not afraid of losing their position. The message is simple: if you were chosen for this honorable list and receive payment and high-level connections, you must show up in person.
Insufficient: The revolving door turns too fast
We are accustomed to retired senior officers integrating into the defense industry. However, it is bitter to see companies like Ondas recruiting Israeli security personnel and winning strategic Ministry of Defense tenders worth millions. This is especially true after they hired former Mossad chief Dadi Barnea as chairman. While we wait for the privatization of IAI and Rafael, our best people are making fortunes for themselves too quickly and too bluntly.
