As part of the agreement reached, the funds will be transferred from the Finance Ministry to the Interior Ministry, which will then allocate and move the funds over to Arab local councils.
Public Diplomacy Minister Galit Distal Atbaryan insisted that the government "needs to address the Jewish base [of supporters]."
More than 150 people have been murdered so far this year in the Arab community, twice the number from last year.
Two local Arab politicians were murdered in two days earlier this week.
A local council candidate was murdered on Tuesday in the second political murder in as many days.
152 Arabs have been killed in Israel since the beginning of 2023, according to the Abraham Initiatives.
The deaths mark the 150th Arab sector murder since the beginning of 2023, according to the Abraham Initiative.
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