Prime Minister Benjamin Netanyahu is now leading a minority government after losing the support of another ultra-Orthodox faction.
Shas, a Sephardic-haredi political party, announced its decision to exit the ruling coalition on Wednesday in protest of the government’s inaction to restore exemptions from military service for ultra-Orthodox believers.
“In this current situation, it’s impossible to sit in the government and to be a partner in it,” said Shas member and Religious Services Minister Michael Malchieli, citing “persecution of Torah scholars.”

Shas leaders clarified that while the party is withdrawing members from the coalition, it will not actively oppose the government or cast votes of no-confidence.
The party is also open to voting alongside the now-minority coalition when their interests are aligned.
Shas’s exit follows a similar decision from fellow ultra-Orthodox political party United Torah Judaism announced Monday night.
Multiple high-ranking government officials from UTJ resigned as part of the withdrawal, including Jerusalem Affairs Minister Meir Porush, Knesset Finance Committee Chairman Moshe Gafni, and Deputy Transportation Minister Uri Maklev.
Since Israel’s founding, community members devoted to Torah studies have been exempt from the nation’s compulsory military service. Ultra-Orthodox learners committed to lifelong Torah studies also receive government stipends, among other benefits.
That was ended by a ruling from the High Court of Justice last month, which ruled unanimously that ultra-Orthodox men cannot be granted these privileges.
Advocates of reestablishing the special arrangement say those religious groups serve an important social role as guardians and scholars of Jewish law, tradition, and faith. Critics say the benefits are unfair to secular citizens and also point to the rapidly growing populations in ultra-Orthodox communities.
Opposition leader Yair Lapid, head of the centrist Yesh Atid party, immediately seized on the disorder caused by Shas’s exit and declared Netanyahu’s minority government “illegitimate.”
“A minority government cannot send soldiers into battle. A minority government cannot decide who will live and who will die. A minority government cannot decide the fate of Gaza, close deals with Syria, and Saudi Arabia. It cannot continue to transfer billions to the corrupt and the military draft dodgers at the expense of taxpayers,” Lapid said.

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He added, “Of course, a minority government cannot dismiss Haredim from military recruitment. It has no authority, it has no right. It is an illegitimate government.”
The Israeli government is desperately trying to draft a bill that will satisfy the demands of ultra-Orthodox factions and balance the logistical and legal concerns expressed by secular citizens and the nation’s courts.