Israel Has a Military Reserve System. It’s Time to Build a Financial One 

In Israel, the transition between Yom HaZikaron and Yom Ha’atzmaut carries profound significance – a shift from national mourning to national celebration, encapsulating the essence of our identity. A nation forged through sacrifice, resilience, and shared responsibility. But this year, for many families across the country, this symbolic moment was overshadowed by something more immediate and pressing: another call-up for reserve duty.  

These aren’t just soldiers. They are parents, business owners, freelancers, teachers, and students—people who have been pulled away from their lives, often at a moment’s notice, again and again. Since October 7, 2023, Israel has faced an unrelenting security crisis, and with each passing month, tens of thousands have been called up repeatedly. What began as an emergency response has become an ongoing reality, testing not only their physical endurance, but their financial resilience—and that of their families. 

Israel’s military reserve system is one of the pillars of our national defense, ensuring a swift and coordinated response to security threats. It allows us to defend the country while keeping the civilian economy intact. However, the frequency and duration of these mobilizations – especially in the aftermath of this year’s Yom Ha’atzmaut, when the reserves were called up in greater numbers for the next stage of warfare – have exposed a glaring vulnerability. While the military system is designed for repeat mobilization, the financial infrastructure that supports reservists and their families has not evolved to meet the current demand. 

The impact of this strain is being felt across the country. Many reservists are self-employed or work in small businesses that cannot easily absorb their extended absences. Families are forced to juggle increased costs with reduced incomes. Savings are quickly depleting, and for those whose financial situation has worsened, traditional credit options remain largely inaccessible due to the instability of their earnings. 

Although the state does provide some compensation, the current support mechanisms were not designed for a reality where tens of thousands of people are repeatedly called up in a single year. This patchwork system is simply insufficient for what has now become a prolonged national effort. What we need is a financial infrastructure that matches the scale and frequency of these call-ups. 

One example of a more effective solution is the Yuval Fund, an initiative created by Ogen, the nonprofit lender where I serve as VP of Development. The fund was established in memory of Yuval Silber z”l, a reservist who was killed in action, to provide interest-free loans to reservists and their families. Since its inception in late 2023, the fund has distributed more than 18 million shekels and supported over 700 families. The fund operates on a revolving basis, meaning that loans are repaid and recycled to support others. 

Recently, demand for the Yuval Fund has surged as the frequency of reserve duty continues to escalate. This surge has prompted Ogen to double its target, raising the goal to support 2,000 families. This increase not only reflects the growing scale of the need but also underscores the absence of other financial instruments designed for this moment. 

However, while initiatives like the Yuval Fund are vital in addressing immediate needs, they are stopgaps, not long-term solutions. If we are to meet the growing demands of this protracted conflict, we need comprehensive, coordinated solutions supported by the government, financial institutions, and philanthropic organizations. 

Practical steps to build a robust support system are within reach. A national revolving fund could provide interest-free or low-interest loans to reservists, modeled on successful nonprofit frameworks. New compensation programs must be tailored to the self-employed and small business owners who are not adequately covered under current policies. Partnerships with banks to create reservist-specific financial products, backed by government guarantees, would ensure continued access to credit, even during extended periods of military service. Additionally, employer support programs could help small businesses retain employees during repeated call-ups, through grants or temporary subsidies. 

These steps are not only achievable; they are necessary. They represent a shift in our national mindset – from treating reserve duty as a short-term disruption to recognizing it as a recurring national responsibility. 

 Israel’s strength has always been its people – the willingness of individuals to step forward again and again in times of national need. But this strength cannot be sustained if we fail to support those who answer the call. If we expect our reservists to serve, we must ensure that their financial futures are not jeopardized in the process. 

It is time we apply the same level of foresight and coordination to supporting the people behind the uniform as we do to military operations. The next round of reserve duty is already underway—and with it, tens of thousands more will once again put their lives on hold. We owe it to them to ensure that their sacrifice does not come at the cost of their financial security or their families’ stability.