The Israel-Hamas War: Rehabilitation of Israeli Communities

The Gaza Border Communities|
Rebuilding the North

The Gaza Border Communities

Nearly two years after the Hamas attack, over 90% of residents of Gaza border communities in Israel had returned home, joined by more than 2,500 new arrivals, according to the government’s Tekuma Directorate. More than 50 families have chosen to settle in the 13 hardest-hit communities, where return rates range from 33% in Nahal Oz to 95% in Re’im.

The state allocated NIS 17.5 billion ($5.25 billion) for a five-year rehabilitation plan, with nearly half already spent. Investments cover housing reconstruction, education, welfare, agriculture, and community resilience. For example, NIS 500 million ($150 million) is funding smaller classes, resilience programs, and informal education; NIS 61 million ($18 million) supports trauma and bereavement programs; and NIS 410 million ($125 million) has been directed to agricultural renewal.

Five communities remain in temporary housing while their kibbutzim are rebuilt, with completion dates ranging from November 2025 to later in 2026. Meanwhile, new infrastructure, mental health services, youth programs, and higher education support — including scholarships at Sapir College — aim to revitalize the region and attract young families.

Minister Ze’ev Elkin said the goal is not only full rehabilitation but also to double the population of the “Tekuma region” to 120,000. Tekuma chief Aviad Friedman noted visible progress, with new infrastructure, housing, and schools already transforming the area.

Rebuilding the North

Rehabilitation of northern Israeli communities after Hezbollah’s attacks is progressing but remains uneven, reflecting deep physical, economic, and psychological challenges.

Population return

• Overall, 87% of evacuated residents had returned by September 2025, and some towns have even surpassed pre-war populations.

• Hard-hit communities show much lower recovery: only 48% of Metula’s residents are back, and return rates in Shtula and Manara hover around 52%.

• Many families remain hesitant to return due to Hezbollah’s continued presence near the border and fear of renewed attacks.

Funding and infrastructure

• The government pledged NIS 15 billion ($4.1 billion) for reconstruction, but only a portion has been disbursed, causing significant delays.

• Border towns such as Metula and Kiryat Shemonah suffered severe destruction of homes and public facilities.

• Since late 2024, the IDF has been clearing debris and unexploded ordnance from more than 40 communities to make areas habitable again.

Economic recovery

• Agriculture, the backbone of the northern economy, sustained over $108 million in losses, with orchards, vineyards, and fields devastated.

• Aid groups, including the Jewish Federations of North America, are helping farmers replant and rehabilitate their land.

• Broader economic fallout includes widespread job losses, with unemployment rates reaching 50% in some localities.

Rehabilitation initiatives

• The government’s multi-year plan emphasizes security, economic development, and municipal strengthening.

• KKL-JNF has committed substantial funds to rebuilding, aiming to restore communities “better than they were.”

• The Tzafona Medical Center has launched the Galilee Talentech Initiative to expand rehabilitation services and train new professionals, addressing long-standing shortages worsened by the war.

Overall, while most residents have returned and rebuilding is underway, northern Israel’s full recovery hinges on accelerating government investment, restoring livelihoods, and ensuring security to give displaced families confidence to come home.

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