Public Transportation Fare Hike Postponed by Six Months Amid Criticism Over Soaring Costs

The planned 12% hike in public transportation fares, scheduled for July 1, has been postponed by six months, keeping the cost of a standard city trip at NIS 8 instead of rising to NIS 9. Despite the delay, public transit users have already experienced a 45% increase in fares over the past year—without any notable improvement in service.

In June 2024, a single trip cost NIS 5.50. Prices rose to NIS 6 in July 2024, and just two months ago jumped to NIS 8. The now-delayed increase was part of a periodic update tied to the input cost index for transit operators.

Ministries Explore Budget Solutions 

Sources within the Transport and Finance Ministries have been in talks to find a budgetary source to prevent the fare increase. One controversial proposal on the table involves a sharp cut of up to 50% to the already reduced NIS 250 million budget for improving bus service in 2025—a budget that has yet to be implemented and remains at risk.

According to Finance Ministry officials, ongoing wartime conditions and the reduced operation of public transit due to security directives have lowered overall system costs, allowing room to absorb the cost of delaying the fare increase. Transit has been operating at significantly reduced levels since the war began, saving money on subsidies and expansions that were previously planned.

Regev’s “Transportation Justice” Program Under Fire

Transport Minister Miri Regev has faced criticism for redirecting funds away from essential service improvements toward her “Transportation Justice” discount initiative—a populist program estimated to cost at least NIS 400 million. Critics argue that instead of addressing overcrowded buses and service shortages, Regev funneled funds into a discount scheme with dubious social equity impacts.

Another NIS 500 million intended for "service additions"—such as new lines and increased frequencies—was also reallocated to support the discount program. The initiative offers a 50% discount on monthly passes for residents of statistical areas 1–5 according to the Central Bureau of Statistics socio-economic index. However, critics point out that many wealthier residents benefit while large groups of needy individuals remain excluded.

The program is also said to disproportionately benefit the ultra-Orthodox sector, with 97% of ultra-Orthodox residents falling into the eligible zones, compared to just 30% of the secular population.

Influencer Campaign Raises Transparency Questions

Further controversy surrounds the Ministry’s decision to recruit at least 20 social media influencers to promote the program. Led by spokesperson Avner Ovadia, the Ministry has not disclosed how much public money was paid to the influencers, despite growing demands for transparency. Estimates suggest the Ministry spent tens of thousands of shekels, as part of a multi-million-shekel advertising campaign.

Attorney Becky Cohen-Keshet from the Forum for the Fight Against Poverty welcomed the decision to delay the fare hike, but warned that "this decision does not solve the essential problem."

“Public transportation prices remain significantly high,” she said. “The ‘Transport Justice’ reform harms the weakest populations who rely on public transit. Discounts don’t apply to single trips, many eligible people are left out, and those struggling financially are still forced to think twice before every ride. Freezing prices is a positive step, but we need a fundamental overhaul.”

Government Statements Offer Few Details

The Ministry of Transportation stated that the fare freeze was made possible due to “savings created by reducing subsidies during the war.” However, it did not comment on whether the bus service improvement budget will face cuts.

The Finance Ministry simply stated that “the issue is under discussion, and we cannot comment at this stage.”

Regev’s office said, “The Ministries of Finance and Transportation are working to improve the quality and reliability of public transportation to encourage greater usage and reduce road congestion.”