The foundation, established by the government in October, said it cannot grant any of the 8,500 requests submitted because it has not yet received any funding, Ynetnews reported Sunday.
The Social Services ministry, which oversees the foundation, blamed the Finance Ministry for not transferring the allocated funds.
Finance Ministry officials said it has allocated the money and is working with social service organizations to distribute them.
Holocaust groups say time is running out to help aging survivors, who may die before help arrives, Ynetnews said.
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