The High Court of Justice on Wednesday issued a temporary freeze on nearly all budget transfers approved by the Knesset Finance Committee the previous day, pointing to clear procedural issues in how the panel conducted its election-recess session.

Judge Alex Stein directed that the transfers remain unimplemented except for one allocation tied to civilian emergency needs.

He instructed that the petition advance quickly to a three-justice panel. Finance Committee chairman Hanoch Milwidsky, Knesset Speaker Amir Ohana and the Finance Ministry must file initial responses once a hearing date is set.

The committee had green-lit roughly NIS 1 billion in funds for the Education Ministry, the National Missions Ministry and the Religious Services Ministry during a long and contentious Tuesday gathering.

Around NIS 270 million reportedly went toward haredi education programs.

Ohana permitted the committee to convene during the recess without the usual approval from the Knesset Coordination Committee. Opposition members noted that the panel had already held its single allowed meeting in the first two weeks of the recess on July 29.

Hiddush - Freedom of Religion for Israel and Democrats MK Naama Lazimi filed the petition after Milwidsky ignored a prior warning letter and proceeded with the session.

The petitioners further claimed several budget requests had not been reviewed before the recess began and accused the outgoing coalition of rushing public funds to allied sectors ahead of the election.

Those additional arguments await court review.

Lazimi stated after the ruling that the group had warned it would block any daylight seizure of public resources and called the decision a key win against attempts to lock in advantages before voting.

Democrats chairman Yair Golan described the order as a success for the serving, working and Zionist public, while Hiddush legal adviser Dr. Yifat Sollel charged the coalition with exploiting the recess meeting for political gain.

Degel Hatorah chairman MK Moshe Gafni praised the allocations after the Tuesday vote, stressing the need to back children and the haredi education system amid financial strain.

The case follows an earlier High Court matter over a NIS 1.08 billion education transfer approved in December, where roughly NIS 400 million had already been disbursed before the committee vote, drawing sharp judicial rebuke.

The Knesset legal department later confirmed that seeking approval only after funds were distributed violated the law and weakened parliamentary checks.