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After statehood
After Israel's establishment in 1948, there was a debate concerning the future of the JNF. Initially the government wanted to dismantle it, but after the United Nations General Assembly passed Resolution 194 calling for Arab refugees to be allowed back into their homes, the JNF was seen as mechanism by which land which was previously owned by Arab refugees could be placed further out of their reach. Accordingly, the government began to sell land to the JNF that had been seized from Arab refugees. On January 27, 1949, 1,000 kmē of this land (from a total of about 3,500 kmē) was sold to the JNF for the low price of 11 million pounds. Another 1,000 kmē of seized land was sold to the JNF in October, 1950. Questions about the legitimacy of these transactions were counteracted by Israeli legislation.

In 1953, the JNF was dissolved and re-organized as an Israeli company without much essential change. A far greater change occurred in 1960, when administration of the land held by the JNF, apart from forested areas, was transferred to a newly formed government agency, the Israel Land Administration, the government agency responsible for managing 93% of the land of Israel . JNF received the right to nominate ten of the 22 directors of the ILA.


JNF funds pay for the planting of trees in Israel.The charter specifies that the purpose of the JNF is to purchase land for the settlement of Jews. In the past, this was interpreted to mean that JNF should not lease land to non-Jews, but the restriction was frequently circumvented in practice, for example, by granting one-year lease to Bedouins for pastures. In January 2005, Israel's Attorney General Menachem Mazuz ruled in response to a Supreme Court petition that lease restrictions violated Israeli anti-discrimination laws.

In June 2005, an agreement was made by which the JNF would transfer a portion of its urban holdings to the state and the state would transfer rural land in the Negev of equal value to the JNF.

 

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