Israel's Finance Ministry announced a 1.6 billion shekel ($537 million) aid package on Tuesday targeted at technology firms and exporters coping with pressure from a strong currency.
The move follows a marked appreciation of the shekel, which strengthened by roughly 30% against the dollar between April 2025 and May 2026 and reached a 33-year high of 2.80 per dollar before easing to about 3 per dollar.
Allocation and objectives
Of the total package, the ministry plans to allocate 1 billion shekels to a rapid-response support program directed at early-stage and growth-stage technology companies. The stated aims of this funding are to lengthen companies' financial runway, support continued growth and help firms maintain or expand operations within Israel.
Additional tranches within the package will finance a review of the long-term global competitiveness of Israel's technology sector and will fund examinations of potential structural reforms ahead of the 2027 state budget.
The remaining balance of the 1.6 billion shekels is designated for several targeted measures: purchase and deployment of advanced manufacturing equipment, assistance programs for exporters, vocational training initiatives and tax incentives administered under the Law for the Encouragement of Capital Investments.
Official response and sector context
Finance Minister Bezalel Smotrich commented that the Bank of Israel should react to the strong shekel by substantially reducing interest rates.
The ministry emphasized the size and importance of the technology sector to the national economy, noting it accounts for approximately 20% of economic activity, contributes more than half of exports and represents nearly 15% of employment.
The ministry framed the package as temporary relief during a difficult period, adding that it should not substitute for broader adjustments required by the "new economic reality," specifically highlighting the need for "increased efficiency and continued innovation, areas in which Israeli industry has consistently excelled."
Next steps
The ministry said the funds would be used immediately to provide relief where needed but that part of the allocation will be devoted to assessing long-term structural questions ahead of the 2027 budget cycle. No further details on implementation timelines or eligibility criteria were provided in the announcement.
Summary of measures:
- 1.6 billion shekel total package ($537 million)
- 1 billion shekels for a fast-track tech support program
- Funds for competitiveness review and potential structural reforms before the 2027 budget
- Remaining funds for advanced manufacturing equipment, exporter help, vocational training and tax incentives