The Israeli occupation's government has approved the transfer of approximately 1.03 billion shekels ($330 million) from funds allocated to Palestinian Arab communities to finance urgent military procurement.

According to Israeli media, around 964 million shekels will be diverted from the multi-year development plan for Arab communities for 2027–2029, while another 68 million shekels will come from the 2026 budget. The move is intended to accelerate classified defense procurement.

The decision redirects funding originally designated for development in Arab communities inside 1948-occupied Palestine toward military spending.