Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
The official entry age to pre-primary education (UIS) is 3 years old. Three years of pre-primary education are compulsory and free based on legal frameworks (UIS). In 2023, the net enrolment rate for pre-primary for both sexes (UIS) was 99.36%.
Governance
The Ministry of Education (MoE) is primarily responsible for financing pre-primary education. The core kindergarten framework is largely a public responsibility: staffing and operating budgets are funded through the education system, with municipalities typically handling facilities, maintenance, and “top-ups” that can affect day-to-day quality and enrichment. Israel's public pre-primary education institutions vary by sector: some offer a curriculum taught in Hebrew or Arabic, while others incorporate an additional religious education component.
Tuition-free status
Israel’s public financing for ages 3–6 (pre-primary / ISCED 02) is anchored in the Compulsory Education Act (1984) and the policy of free, compulsory pre-school for ages 3–4, which was rolled out nationally by 2014.
1. Education resources to subnational governments
The Ministry of Education provides most of school budgets, covering teaching staff and capital expenditure. Additional central funds are transferred to local authorities for technical operations and non-teaching staff. Some local authorities contribute supplementary resources based on their financial means. The distribution of government grants to local governments is primarily composed of transfers from the Ministry of Education for defined purposes. Allocations are determined by the number of students and per pupil costs for achieving prescribed education outcomes.
Additional resources are transferred to local authorities through block grants. The General Balancing Grant, established in 2017, is an equalising grant intended to reduce fiscal disparities across local governments. Funds are allocated by the Ministry of Interior and may be used for any essential public services, including education. Allocation is based on population size, socioeconomic ranking, local revenue-raising capacity, the cost of providing basic services, immigrant populations from selected countries, and proximity to conflict-affected areas (including in settlements in the Occupied Palestinian Territories). The formula works to provide more support to municipalities with lower tax bases. The Equalisation (Anora) Fund grant similarly allocates funds to local authorities based on their socio-economic index, among other factors.
2. Education resources to institutions
The Ministry of Education (MoE) determines school budgets using formulas based on the number of classes or students, adjusted for factors such as class size, school sector, and special education needs. From a budget structure perspective, the main cost drivers at ages 3–6 are (1) personnel compensation (teachers, assistants, support staff), (2) operating expenditure (materials, services, supervision), and (3) capital spending for construction/expansion of kindergartens where demand outpaces supply. Knesset Research and Information Center (2023; 2025) documents that focus on early-childhood financing typically emphasize these components and the way implementation of free education created recurrent (ongoing) commitments alongside multi-year infrastructure needs. The equitable needs-based formula for school funding does not apply at the pre-primary level.
The MoE launched the Marom Programme to promote educational equity. Introduced under the 2018–2019 Work Plan, the programme channels financial and pedagogical resources to schools serving less-advantaged students from kindergarten to grade 9. Target schools are selected based on socio-economic indices to reduce disparities in educational opportunities and outcomes. Funds are used to support differential teaching methods, strengthen teachers’ pedagogical skills and teamwork, and enhance school management and work processes.
3. Education resources to students and families
While pre-school education is provided for free in public institutions, after school programmes that extend beyond 2 pm sometimes charge tuition depending on the municipality. Based on socioeconomic status, the MoE provides subsidies up to NIS 400 per month to support family’s access to extended day services. The government sometimes also subsidises tuition for private pre-schools.
4. Social policies and family support programmes
The National Insurance Institute pays a monthly child allowance to families living in Israel who have children up to the age of 18. The allowance is intended to assist families with the costs of raising children, and it is paid regardless of the family's income, on the 20th of every month. The allowance is paid automatically without education-related conditionalities.
This profile was reviewed by Professor Iris BenDavid-Hadar of Bar-Ilan University.
