Israeli Film Council Proposes Funding Changes After Controversial Documentary

The Israeli Film Council, which advises the Ministry of Culture on film policy, has suggested eliminating film festival selections from the points system that determines state film-fund allocations. The proposal follows the Venice Film Festival premiere of the documentary NAZA, which won a Special Jury Prize and sparked a political debate in Israel.

In a note to industry contacts, the council said the change aims to counter what it described as global smear campaigns against Israel and to strengthen films that reflect Israeli life and the memory of fallen soldiers. It also recommended a new state-backed funding strand for movies “centered on the heroism of IDF soldiers and veterans of Israel’s wars,” aligning with the country’s Memorial Day law for fallen soldiers.

Under the current system, Israel’s roughly 130 million shekel (US$42 million) cinema budget is divided among six funds, and a film’s performance at A-list festivals has traditionally contributed to its points score. An Israeli producer explained that festival presence influences fund decisions, noting that “when funds decide to support a film, one of the things that they consider is whether a director is known… The likelihood of his films going to an A-list festival is one of the things that might convince the fund to invest.”

The producer added that NAZA was not financed by Israeli state money or local broadcasters, but by foreign production companies, and questioned the council’s recommendations.

Prime Minister Benjamin Netanyahu has announced fast-track legislation that would revoke citizenship for individuals who “defame Israeli soldiers” and increase damages in defamation cases. He also threatened to strip co-directors Yuval Abraham and Rachel Szor of their citizenship, a move that legal experts say exceeds existing authority.

The filmmakers have reported receiving death threats, and the Brussels-based Committee to Protect Journalists called on Israeli authorities to ensure their safety and reject the use of citizenship rights as a weapon against journalists.

"Israeli authorities must ensure the safety of Yuval Abraham and Rachel Szor and immediately reject any attempt to use citizenship rights as a weapon against journalists," the CPJ statement read.

Industry observers note that the proposed removal of festival criteria could further isolate Israeli cinema, which has already faced reduced international standing amid boycotts and domestic political pressure.