It looks pretty final. The Ministry of Education yesterday distributed a letter to various yeshivot informing them that as of 2014 there will be no more funding for foreign students. As of right now the funding is being decreased, to 30% of the monies received for an Israeli student, until the end of the current year.
(source: Kikar)
This is going to be a big hit to many yeshivot - worst of all to Israeli yeshivot that have a lot of foreign students, like the Mir and many others. I don't know for sure, but I think the one year American yeshivot, also known as "gap year yeshivot" probably won't be hit so badly - they already charge high tuition, which the Israeli yeshivot do not do, making them less dependent on the subsidies from the government.
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