Israel’s national public diplomacy apparatus, known domestically as Hasbara, is confronting significant financial and operational challenges as multiple contractors file lawsuits demanding millions in unpaid compensation. According to reports from Israeli daily Calcalist, several private firms that provided crucial services during the initial phase of Israel’s military operations in Gaza are seeking substantial payments from the government.
Two prominent companies that established specialized studios for Israeli leadership and funded pro-Israel activism across Europe have collectively demanded approximately two million shekels ($650,000) in outstanding payments. One production company that provided dedicated broadcast facilities for Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant is seeking over half a million shekels ($160,000), while another firm called Intellect has filed claims exceeding 1.5 million shekels ($487,000).
The situation reveals deeper structural issues within Israel’s propaganda machinery. Following the October 2023 Hamas-led attacks, the Hasbara directorate rapidly expanded its operations by hiring dozens of independent activists and influencers through private contractors rather than formal government employment. This arrangement, described by participants as “always messy,” effectively made private companies the payment conduit for Israel’s international representation efforts.
Notably, British-Israeli influencer Eylon Levy, who served as an official government spokesperson until March 2024, confirmed he is among those owed compensation but has declined to participate in the legal action. Despite his official tenure ending, Levy has continued advocating for Israel’s positions through his substantial social media presence, recently calling for the expulsion of Iran’s ambassador to the UK following missile attacks near British bases in Cyprus.
The Prime Minister’s office acknowledged “irregularities in the contracting practices” but declined detailed comment due to ongoing legal proceedings. Meanwhile, Israel has significantly increased funding for its propaganda efforts, with the foreign ministry receiving an additional 150 million shekels ($49 million) last September—funds redirected from higher education budgets—to establish a new public diplomacy directorate specifically focused on recruiting social media influencers and bloggers.
Concurrently, the Diaspora Ministry under Amichai Chikli has pursued aggressive hasbara campaigns targeting US college campuses and attempting to influence legal definitions of antisemitism, while offering substantial financial incentives to settlement municipalities for propaganda activities both domestically and internationally.