On March 25, 2025, the Knesset approved the 2025 budget of NIS 755 billion ($205 billion) with a 66-52 vote, averting potential general elections. The budget includes major investments in public diplomacy and transportation.

Opposition figures criticized the 2025 state budget, alleging billions are being stolen. On 2025-03-25, opposition leader Yair Lapid criticized the approved budget, accusing the government of corruption and transferring funds from the middle class to individuals who do not work or serve in the military. National Unity chairman Benny Gantz denounced the 2025 budget as demonstrating the government's "disconnection and shamelessness," arguing it abandons reservists, hostage families, and young families.

On 2025-03-25, Finance Minister Bezalel Smotrich stated that the 2025 budget includes billions of shekels for defense, grants for IDF reservists and their families, subsidies for businesses affected by the war, and funding for family summer camps.

On 2025-03-25, Knesset Finance Committee Chairman Moshe Gafni (United Torah Judaism) responded to criticism of the budget by condemning what he described as "incitement" against the ultra-Orthodox community.

Published on 2025-03-25, Yisrael Beytenu chairman Avigdor Liberman complained that while taxes and prices have increased, coalition funds have not been cut. On January 1, the value-added tax (VAT) rose from 17% to 18% to boost state income.

Published on 2025-03-25, United Torah Judaism chairman Yitzhak Goldknopf, who previously threatened to oppose the budget if the ultra-Orthodox exemption from military service was not legally ensured, ultimately supported the budget after Otzma Yehudit rejoined the government.

Yemen’s Houthi rebels claimed on 2025-03-26 to have launched an overnight drone attack on central Israel, though no sirens were activated. The Houthis also claimed responsibility for targeting a US vessel and Israeli military sites with drones.

Moody’s Investors Service warned on 2025-03-26 that Israel’s economy has been weakened by ‘very high political risks’.

As of March 26, 2025, live updates cover the Israel-Gaza conflict, including IDF operations in the West Bank. Discussions about a Gaza ceasefire and protests by Gazans are also ongoing.

On March 25, 2025, Defense Minister Israel Katz and IDF Chief of Staff Lt.-Gen. Eyal Zamir met to collaborate following a public disagreement. Defense Minister Katz also ordered IDF Chief of Staff Lt.-Gen. Eyal Zamir to investigate the military advocate-general's investigation of Brig.-Gen. Oren Solomon, which Zamir refused.

As of March 24, 2025, Prime Minister Benjamin Netanyahu is scheduled to begin interviewing candidates for the head of the Shin Bet.

Thousands rallied in Jerusalem advocating for a hostage deal. Herzog expressed shock that Israel has lost its focus on the hostages. During the Knesset vote, opposition lawmakers protested the budget by holding signs bearing the number 59, representing the Israeli hostages remaining in Gaza, and chanted "shame" following the budget's passage.

Protesters were arrested for blocking roads to the Knesset during the government's passage of the 2025 budget. On 2025-03-25, anti-government protesters blocked roads outside the Knesset in Jerusalem, leading to clashes with police and the arrest of six individuals for disturbing public order; Knesset members required police escorts to enter the building.

On March 25, 2025, hundreds of Gazans protested in Beit Lahiya, calling for an end to Hamas rule and the return of Israeli hostages. The protest was dubbed “Intifada of the North.”