Trump’s pen cut deep: How a single order derailed Arab tech progress in Israel

After more than two decades of focused effort, the integration of Arab society into Israeli high-tech has emerged as a notable success story. Thousands of young Arab men and women have moved away from the traditional career path—teaching, medicine, pharmacy, and law—and turned to engineering and technology, hoping to find their place in the growth engine of the Israeli economy.

Tsofen (Tsofen-Tashbik) is one of the key organizations that has facilitated the complex integration of Arab academics into Israel’s high-tech sector. Since 2008, Tsofen has encouraged Arab high school students to dream of jobs at Microsoft, Google, Intel, and Amdocs—and has also convinced these companies to give them a chance.

This model worked well for both sides—until Donald Trump came along. One of the first executive orders signed by the U.S. president halted funding to USAID, the U.S. Agency for International Development. As a result, $2.8 million in funding was cut from Tsofen, bringing the organization to the brink of collapse.

“That was half our budget. We had to lay off employees and freeze courses,” says Tsofen CEO Maisam Jaljouli. The impact was dramatic, but according to Jaljouli, the real goal remains far beyond simply surviving: “We’re aiming for much higher representation—around 30%, like in medicine. After all, Arab society produces hundreds of talented graduates in relevant fields. There’s no real reason they shouldn’t be hired.”

Why do young Arab graduates with software engineering degrees need help getting hired in high-tech?

"Two years ago, we conducted a study with around 450 Arab engineers. The findings were clear: professionally, they feel appreciated—but socially, they don’t feel like they belong. They’re on the sidelines, not part of the high-tech scene—and that hurts. Society doesn’t fully accept them, and they feel it in their daily interactions."

Why is that?

“High-tech has its own unique codes, different from the rest of the Israeli job market. It requires soft skills like teamwork and specific norms—like dress codes—that aren’t always intuitive to Arab candidates. Even during a job interview, cultural gaps can interfere. For example, HR staff often expect candidates to make direct eye contact, especially in the final stage. But in Arab culture, particularly when facing authority figures, this isn’t customary. As a result, Arab candidates can be perceived as shy or lacking confidence, and it hurts their chances.”

I assume the lack of military service and the dominance of the defense sector are also major obstacles.

“Absolutely. The Israeli high-tech industry has its roots in the security world—military intelligence units, technologies developed in the army, cyber weapons. This creates a built-in barrier for populations who didn’t serve in those units—especially Arabs. Even in startups unrelated to defense, the culture of ‘friend brings friend’ prevails. A founder who served in a tech unit builds a company and naturally hires people from that circle. They speak the same language and trust each other. Now imagine a 23-year-old Arab man with no military background, no security clearance, maybe not even fluent Hebrew. He’s from a rural village and unfamiliar with the cultural codes of a high-tech work environment. Why would anyone take him? He’s seen as a stranger. And most Arab engineers are from the north, which adds another hurdle, since the industry is centered in the Tel Aviv area.”

Estimates suggest that around 60 organizations in Israel were affected by the USAID cuts—most of them dedicated to supporting disadvantaged or marginalized groups. These include the Tapuach Association, which brings peripheral communities into tech; the Rozana Project, which trains Palestinian medical staff in Israeli hospitals; and the Future Initiatives Association, which supports women from low-income backgrounds in launching small businesses.

According to Jaljouli, the USAID cuts were just the latest blow—coming on top of repeated delays in government support. The Ministry of Labor and Social Affairs’ Forsatech program, designed to support Arab integration into high-tech, is supposed to allocate NIS 30 million over three years. “But the third Forsatech tender, due in December 2023, was postponed again and again,” she says. “Then the war broke out, and the government barely functioned. Months went by, and we kept hearing it would be issued ‘soon,’ but nothing happened. Only this week was the tender finally renewed—but it’s now for two and a half years instead of three, and the budget has been cut by NIS 3 million.”

The money that allowed Tsofen to keep its head above water over the past year and a half came from USAID—until that, too, was frozen. “Despite everything, we made a decision that all the programs already underway would continue,” says Jaljouli. “There was no reason for an Arab candidate to suffer because of Trump’s whim. So we started scraping together funds from private donors and foundations. It’s not ideal—but we’re not giving up.”

Who donated?

"In addition to the Rothschild Foundation and Bank Hapoalim, which are among our regular supporters, funding also came from Jewish donors around the world who understand the importance of breaking the cycle. Private donations from abroad now make up about a third of our annual budget—approximately 3.5 million shekels."

Did they donate easily?

"They conducted thorough due diligence—background checks and assessments that went on and on."

And the government didn’t step in after the U.S. funding was cut?

"There was no one to talk to. The state knew what had happened—we raised the alarm and asked for help. But the government has no real interest in Arab society, especially now that everyone has supposedly 'sobered up.' But those who claim to be 'sober' don't realize they're actually harming themselves by ignoring the long-term consequences."

Has the tech industry also turned a cold shoulder?

"Since October 7, tech company executives have become more hesitant to hire Arabs. There’s also been tension within the companies. The day after the attack, we got calls from Arab engineers who said they were afraid to speak Arabic at the office. One person told us he said 'good morning' at work, and his colleagues interpreted it as if he was celebrating the tragedy. There was a general atmosphere of suspicion, alienation, and fear. Jewish employees began bringing personal firearms to the office—something that wasn’t previously common. Some people even complained about posts in Arabic or neutral comments that were perceived as political. The fear of being viewed as a 'threat from within' paralyzed our people—and the companies, instead of managing the crisis, simply stayed silent."

That concern is understandable.

"I understand that people have different political perspectives—right or left—but everyone should agree that we need to make this country a better place. And without integrating Arabs, that won’t happen. Unfortunately, over the past few months, there have been attempts by several government ministers to undermine the budget for the Five-Year Plan for Arab Society, which includes the Forsatech project."

"The OECD warned that the gap between Arab and Jewish society places a heavy burden on Israel’s economy. So when the minister responsible for the Five-Year Plan, May Golan, says ‘I will vote against the budget if the plan is implemented,’ that should be a red flag. How is it possible that the largest development budget for Arab society is in the hands of someone who doesn’t believe in its purpose?"

I assume a government with ministers like Ben Gvir isn’t very concerned with improving conditions for Arabs in Israel.

"I don't expect anything from this government. But even the opposition hasn’t spoken out against Golan’s extremist statements. It’s worth noting that the Five-Year Plan was originally initiated by a Netanyahu government."

Tsofen has partnered with several leading high-tech companies operating in Israel. Intel was one of the first to integrate Arab engineers and helped open doors into the industry. At Amdocs, about 8% of engineers are Arab, and the company operates a branch in the Nazareth Industrial Park. Nvidia also employs a significant number of Arab engineers.

Now, says Jaljouli, many projects have been put on hold due to the war and the call-up of many tech workers to military reserves. "The mentorship program, for example—which pairs experienced high-tech professionals with students and graduates at the beginning of their careers—has faced serious disruptions. Many mentors were drafted into reserve duty and no longer had time to participate."

Trump effectively canceled and banned diversity programs in the public sector. That also affected tech companies, didn’t it?

"The terminology changed because of that, but in practice, many of the programs continue—just under different names."

How many Arab students are currently studying engineering or tech-related fields?

"According to our estimates, there are about 10,000 Arab students studying in these fields—not including those enrolled in colleges. The concern is that they’ll graduate and not find jobs. Some will return to their villages and become teachers; others might try their luck abroad. When the market doesn’t absorb them, they don’t just become disheartened—they begin to feel alienated. They ask themselves: ‘What did I work so hard for? Do I really have a future here?’"

And how do you see the future?

"Without the integration of Arabs into high-tech, Israel's future cannot be a good one. You can't leave such a large portion of the population behind—not morally, not economically, and not socially. It’s just not sustainable."

The Ministry of Labor said:

“The delay in the tender process was caused by the Swords of Iron war and the recruitment of personnel to handle the program. At the same time, the ministry updated and improved the tender model. Due to the end of the current Five-Year Plan for the socio-economic development of Arab society in 2026, we were forced to reduce the program’s budget to 27 million shekels. However, we retained a four-year option to extend the program over time. A new budget will be required once a new Five-Year Plan is formulated.”

presentation—around 30%, like in medicine. After all, Arab society produces hundreds of talented graduates in relevant fields. There’s no real reason they shouldn’t be hired.”

Why do young Arab graduates with software engineering degrees need help getting hired in high-tech?

"Two years ago, we conducted a study with around 450 Arab engineers. The findings were clear: professionally, they feel appreciated—but socially, they don’t feel like they belong. They’re on the sidelines, not part of the high-tech scene—and that hurts. Society doesn’t fully accept them, and they feel it in their daily interactions."

Why is that?

“High-tech has its own unique codes, different from the rest of the Israeli job market. It requires soft skills like teamwork and specific norms—like dress codes—that aren’t always intuitive to Arab candidates. Even during a job interview, cultural gaps can interfere. For example, HR staff often expect candidates to make direct eye contact, especially in the final stage. But in Arab culture, particularly when facing authority figures, this isn’t customary. As a result, Arab candidates can be perceived as shy or lacking confidence, and it hurts their chances.”

I assume the lack of military service and the dominance of the defense sector are also major obstacles.

“Absolutely. The Israeli high-tech industry has its roots in the security world—military intelligence units, technologies developed in the army, cyber weapons. This creates a built-in barrier for populations who didn’t serve in those units—especially Arabs. Even in startups unrelated to defense, the culture of ‘friend brings friend’ prevails. A founder who served in a tech unit builds a company and naturally hires people from that circle. They speak the same language and trust each other. Now imagine a 23-year-old Arab man with no military background, no security clearance, maybe not even fluent Hebrew. He’s from a rural village and unfamiliar with the cultural codes of a high-tech work environment. Why would anyone take him? He’s seen as a stranger. And most Arab engineers are from the north, which adds another hurdle, since the industry is centered in the Tel Aviv area.”

Estimates suggest that around 60 organizations in Israel were affected by the USAID cuts—most of them dedicated to supporting disadvantaged or marginalized groups. These include the Tapuach Association, which brings peripheral communities into tech; the Rozana Project, which trains Palestinian medical staff in Israeli hospitals; and the Future Initiatives Association, which supports women from low-income backgrounds in launching small businesses.

According to Jaljouli, the USAID cuts were just the latest blow—coming on top of repeated delays in government support. The Ministry of Labor and Social Affairs’ Forsatech program, designed to support Arab integration into high-tech, is supposed to allocate NIS 30 million over three years. “But the third Forsatech tender, due in December 2023, was postponed again and again,” she says. “Then the war broke out, and the government barely functioned. Months went by, and we kept hearing it would be issued ‘soon,’ but nothing happened. Only this week was the tender finally renewed—but it’s now for two and a half years instead of three, and the budget has been cut by NIS 3 million.”

The money that allowed Tsofen to keep its head above water over the past year and a half came from USAID—until that, too, was frozen. “Despite everything, we made a decision that all the programs already underway would continue,” says Jaljouli. “There was no reason for an Arab candidate to suffer because of Trump’s whim. So we started scraping together funds from private donors and foundations. It’s not ideal—but we’re not giving up.”

Who donated?

"In addition to the Rothschild Foundation and Bank Hapoalim, which are among our regular supporters, funding also came from Jewish donors around the world who understand the importance of breaking the cycle. Private donations from abroad now make up about a third of our annual budget—approximately 3.5 million shekels."

Did they donate easily?

"They conducted thorough due diligence—background checks and assessments that went on and on."

And the government didn’t step in after the U.S. funding was cut?

"There was no one to talk to. The state knew what had happened—we raised the alarm and asked for help. But the government has no real interest in Arab society, especially now that everyone has supposedly 'sobered up.' But those who claim to be 'sober' don't realize they're actually harming themselves by ignoring the long-term consequences."

Has the tech industry also turned a cold shoulder?

"Since October 7, tech company executives have become more hesitant to hire Arabs. There’s also been tension within the companies. The day after the attack, we got calls from Arab engineers who said they were afraid to speak Arabic at the office. One person told us he said 'good morning' at work, and his colleagues interpreted it as if he was celebrating the tragedy. There was a general atmosphere of suspicion, alienation, and fear. Jewish employees began bringing personal firearms to the office—something that wasn’t previously common. Some people even complained about posts in Arabic or neutral comments that were perceived as political. The fear of being viewed as a 'threat from within' paralyzed our people—and the companies, instead of managing the crisis, simply stayed silent."

That concern is understandable.

"I understand that people have different political perspectives—right or left—but everyone should agree that we need to make this country a better place. And without integrating Arabs, that won’t happen. Unfortunately, over the past few months, there have been attempts by several government ministers to undermine the budget for the Five-Year Plan for Arab Society, which includes the Forsatech project."

"The OECD warned that the gap between Arab and Jewish society places a heavy burden on Israel’s economy. So when the minister responsible for the Five-Year Plan, May Golan, says ‘I will vote against the budget if the plan is implemented,’ that should be a red flag. How is it possible that the largest development budget for Arab society is in the hands of someone who doesn’t believe in its purpose?"

I assume a government with ministers like Ben Gvir isn’t very concerned with improving conditions for Arabs in Israel.

"I don't expect anything from this government. But even the opposition hasn’t spoken out against Golan’s extremist statements. It’s worth noting that the Five-Year Plan was originally initiated by a Netanyahu government."

Tsofen has partnered with several leading high-tech companies operating in Israel. Intel was one of the first to integrate Arab engineers and helped open doors into the industry. At Amdocs, about 8% of engineers are Arab, and the company operates a branch in the Nazareth Industrial Park. Nvidia also employs a significant number of Arab engineers.

Now, says Jaljouli, many projects have been put on hold due to the war and the call-up of many tech workers to military reserves. "The mentorship program, for example—which pairs experienced high-tech professionals with students and graduates at the beginning of their careers—has faced serious disruptions. Many mentors were drafted into reserve duty and no longer had time to participate."

Trump effectively canceled and banned diversity programs in the public sector. That also affected tech companies, didn’t it?

"The terminology changed because of that, but in practice, many of the programs continue—just under different names."

How many Arab students are currently studying engineering or tech-related fields?

"According to our estimates, there are about 10,000 Arab students studying in these fields—not including those enrolled in colleges. The concern is that they’ll graduate and not find jobs. Some will return to their villages and become teachers; others might try their luck abroad. When the market doesn’t absorb them, they don’t just become disheartened—they begin to feel alienated. They ask themselves: ‘What did I work so hard for? Do I really have a future here?’"

And how do you see the future?

"Without the integration of Arabs into high-tech, Israel's future cannot be a good one. You can't leave such a large portion of the population behind—not morally, not economically, and not socially. It’s just not sustainable."

The Ministry of Labor said:

“The delay in the tender process was caused by the Swords of Iron war and the recruitment of personnel to handle the program. At the same time, the ministry updated and improved the tender model. Due to the end of the current Five-Year Plan for the socio-economic development of Arab society in 2026, we were forced to reduce the program’s budget to 27 million shekels. However, we retained a four-year option to extend the program over time. A new budget will be required once a new Five-Year Plan is formulated.”