Jerusalem Municipality has approved an unusually large development budget for 2026, totaling approximately NIS 6.2 billion – a non-regular budget intended to drive major projects that fall outside the city’s ongoing operational framework. The scale of the budget places 2026 as a pivotal year in shaping Jerusalem’s urban, social, and infrastructural future.
The funding sources combine municipal levies and fees, participation from various government ministries, and additional revenues. According to the municipality, the budget reflects a broad strategic approach that views infrastructure, education, culture, and welfare as long-term growth engines for the capital, alongside continued investment in improving the city’s public space and quality of life.
A significant portion of the budget will be directed toward the continued overhaul of urban infrastructure, including roads, sidewalks, and public areas, as well as advancing light rail works and expanding the city’s network of bicycle lanes. At the same time, planning and development of residential and employment complexes will be promoted through the Urban Renewal Authority, responding to Jerusalem’s steady population growth and changing patterns of living and work.
What Are the Priorities of Jerusalem’s 2026 Development Budget?
Municipal officials say that substantial resources will be allocated to the construction of new public buildings, including youth centers, mother-and-child clinics, and sports halls, as part of preparations for renewing neighborhoods and the growing needs of residents. Investment will also continue in renovating and upgrading kindergartens and educational institutions, alongside making public buildings and urban spaces accessible to people with disabilities.
Culture and leisure occupy a central place in the budget as well. Planned projects include upgrades to major cultural and recreational sites such as Sultan’s Pool, the Natural History Museum, and Teddy Stadium, along with the rehabilitation of public gardens and sustained investment in the development, maintenance, and care of public spaces across the city.
Jerusalem Mayor Moshe Lion addressed the approval of the budget and noted: “The development budget we approved reflects a clear order of priorities – extensive investment in infrastructure, education, culture, and the quality of life of Jerusalem’s residents. This budget continues the development momentum of recent years in the capital, including road paving, strengthening the education system, developing public buildings, advancing the light rail, and upgrading neighborhoods and public spaces. In recent years, Jerusalem has been in the midst of a deep process that strengthens it and positions it as Israel’s leading city in all areas of life. We will continue to develop, build, and lead the capital forward as a city adapted to the current era and to the needs of all its residents.”
Beyond the figures, the 2026 budget signals an effort to redefine Jerusalem as a modern, evolving city – one that seeks to balance its historical depth with contemporary infrastructure. The coming year will serve as a test of whether this unprecedented level of investment can be translated into tangible change felt on the city’s streets, in its neighborhoods, and throughout the public realm.
