British students under the age of 22 going to yeshivah or seminary in Israel will no longer be able to apply for grants from Masa, which specialises in programmes for youth and young adults from the diaspora.
The withdrawal of grants for younger yeshivah and sem students will affect North American participants as well.
The organisation, founded by the Jewish Agency and the Israeli government in 2004, has been forced to make cuts as Covid-19 hit the Isaeli economy.
Masa's acting chief executive Ofer Gutman said, "At the same time, demand for Masa programmes is increasing significantly as job markets tighten and universities remain closed for in-person classes.