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U.S. Foreign Aid to Israel: Overview and Developments since October 7, 2023

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U.S. Foreign Aid to Israel
March 1, 2023
This report provides an overview of U.S. foreign assistance to Israel. It includes a
review of past aid programs, data on annual assistance, and analysis of current issues.
Jeremy M. Sharp
For general information on Israel, see Israel: Background and U.S. Relations in Brief,
Specialist in Middle
by Jim Zanotti.
Eastern Affairs

Israel is the largest cumulative recipient of U.S. foreign assistance since World War II.
Successive Administrations, working with Congress, have provided Israel with

assistance reflective of robust domestic U.S. support for Israel and its security; shared strategic goals in the
Middle East; a mutual avowed commitment to democratic values; and historical ties dating from U.S. support for
the creation of Israel in 1948. To date, the United States has provided Israel $158 billion (current, or non-inflation-
adjusted, dollars) in bilateral assistance and missile defense funding. At present, almost all U.S. bilateral aid to
Israel is in the form of military assistance; from 1971 to 2007, Israel also received significant economic
assistance.
In 2016, the U.S. and Israeli governments signed their third 10-year Memorandum of Understanding (MOU) on
military aid, covering FY2019 to FY2028. Under the terms of the MOU, the United States pledged to provide—
subject to congressional appropriation—$38 billion in military aid ($33 billion in Foreign Military Financing
(FMF) grants plus $5 billion in missile defense appropriations) to Israel.
Israel is the first international operator of the F-35 Joint Strike Fighter, the Department of Defense’s fifth-
generation stealth aircraft, considered to be the most technologically advanced fighter jet ever made. To date,
Israel has purchased 50 F-35s in three separate contracts, funded with U.S. assistance, and has taken delivery of
36
For FY2023, Congress authorized $520 million for joint U.S.-Israel defense programs (including $500 million for
missile defense) in the FY2023 James M. Inhofe National Defense Authorization Act. Per the terms of the MOU,
Congress appropriated $3.8 billion for Israel (FMF and missile defense) in the FY2023 Consolidated
Appropriations Act, and added $98.58 million in funding for other cooperative defense and non-defense
programs.
The foreign aid data in this report are compiled by the Congressional Research Service from a number of
resources, including USAID's U.S. Overseas Loans and Grants (also known as the "Greenbook"), CRS
communications with the State Department and the United States Agency for International Development
(USAID), and annual State Department and USAID Congressional Budget Justifications. For terminology and
abbreviations used in this report, see Appendix A.

Congressional Research Service


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Contents
Background ..................................................................................................................................... 1
U.S. Aid and Israel’s Advanced Military Technology ..................................................................... 2
Qualitative Military Edge (QME) ................................................................................................... 5
U.S. Bilateral Military Aid to Israel ................................................................................................ 7
The Current 10-Year Security Assistance Memorandum of Understanding (MOU) ................ 8
Foreign Military Financing (FMF) and Arms Sales ................................................................ 10
Cash Flow Financing ........................................................................................................ 10
Early Transfer and Interest Bearing Account ..................................................................... 11
Shorter Congressional Review Period .............................................................................. 12
F-35 Joint Strike Fighter ................................................................................................... 12
KC-46A Pegasus ............................................................................................................... 14
CH-53K Heavy Lift Helicopters ....................................................................................... 15
Excess Defense Articles .......................................................................................................... 15
Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs ................................ 16
Iron Dome ............................................................................................................................... 17
Co-production and U.S. Funding ...................................................................................... 18
Ukraine’s Request for Israeli Missile Defense Systems ................................................... 19
David’s Sling ........................................................................................................................... 21
The Arrow and Arrow II .......................................................................................................... 22
High Altitude Missile Defense System (Arrow III) ................................................................ 23
Export of the Arrow III to Germany ................................................................................. 24
Emergency U.S. Stockpile in Israel......................................................................................... 26
Defense Budget Appropriations for Anti-Tunnel Defense ............................................................ 30
Defense Budget Appropriations for Countering Unmanned Aerial Systems ................................ 30
Aid Restrictions and Possible Violations ....................................................................................... 31
Arms Sales and Use of U.S.-Supplied Equipment .................................................................. 32
Section 502B of the Foreign Assistance Act ..................................................................... 32
End-Use Monitoring ......................................................................................................... 33
Human Rights Vetting (Leahy Law) ....................................................................................... 33
Use of U.S. Funds within Israel’s Pre-June 1967 Borders ...................................................... 35
Israeli Arms Transfers to Third Parties.................................................................................... 36
Israel and China ................................................................................................................ 36
Other Ongoing Assistance and Cooperative Programs .................................................................. 39
Migration and Refugee Assistance .......................................................................................... 39
Loan Guarantees...................................................................................................................... 40
Overview ........................................................................................................................... 40
Loan Guarantees for Economic Recovery ........................................................................ 40

American Schools and Hospitals Abroad Program (ASHA)................................................... 41
U.S.-Israeli Scientific & Business Cooperation ...................................................................... 41

U.S.-Israeli Energy Cooperation (BIRD Energy) ............................................................. 43
U.S.-Israel Center of Excellence in Energy, Engineering and Water Technology
(Energy Center) .............................................................................................................. 44
BIRD Homeland Security (BIRD HLS) ........................................................................... 44
BIRD Cyber ...................................................................................................................... 45
Other Congressionally Authorized Cooperative Endeavors .................................................... 45
Congressional Research Service

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Figures
Figure 1. Israel’s Annual Arms Exports: 2012-2021 ....................................................................... 3
Figure 2. Phasing Out Off-Shore Procurement (OSP) Under the MOU ......................................... 9
Figure 3. U.S. Foreign Military Financing to Israel over Decades.................................................. 9
Figure 4. U.S. and Israeli F-35s Fly in Formation ......................................................................... 13
Figure 5. F-35 Helmet Mounted Display ...................................................................................... 14
Figure 6. The KC-46A Pegasus ..................................................................................................... 15
Figure 7. The CH-53K Heavy Lift Helicopter for Israel ............................................................... 15
Figure 8. Iron Dome Launcher ...................................................................................................... 18
Figure 9. David’s Sling Launches Stunner Interceptor ................................................................. 22
Figure 10. Army Officers Inspect WRSA-I ................................................................................... 27

Tables
Table 1. Total U.S. Foreign Aid Obligations to Israel: 1946-2023 .................................................. 1
Table 2. Selected Notified U.S. Foreign Military Sales to Israel .................................................. 16
Table 3. U.S. Contributions to the Arrow Program (Arrow, Arrow II, and Arrow III) .................. 23
Table 4. Defense Budget Appropriations for U.S.-Israeli Missile Defense: FY2006-
FY2023 ....................................................................................................................................... 25
Table 5. U.S.-Israeli Anti-Tunnel Cooperation .............................................................................. 30
Table 6. U.S.-Israeli Anti-Drone Cooperation ............................................................................... 31
Table 7. Migration and Refugee Assistance Funding Levels for Israel ........................................ 39

Table A-1. U.S. Bilateral Aid to Israel ........................................................................................... 47
Table B-1. Authorized Aid for Israel in P.L. 117-263, the James M. Inhofe National
Defense Authorization Act (NDAA) for Fiscal Year 2023 ......................................................... 48
Table B-2. Appropriated Aid to Israel in P.L. 117-328, the Consolidated Appropriations
Act, 2023 .................................................................................................................................... 49

Appendixes
Appendix A. Bilateral Aid to Israel ............................................................................................... 47
Appendix B. Israel and FY2023 Legislation ................................................................................. 48
Appendix C. Common Acronyms and Abbreviations used in this Report .................................... 53

Contacts
Author Information ........................................................................................................................ 53

Congressional Research Service

U.S. Foreign Aid to Israel

Background
The United States and Israel have maintained strong bilateral relations based on a number of
: Overview and Developments since October 7, 2023 Updated May 28, 2025 (RL33222) Jump to Main Text of Report

Contents

Tables

Summary

Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. Successive Administrations, working with Congress, have provided Israel with assistance reflective of robust domestic U.S. support for Israel and its security; shared strategic goals in the Middle East; and historical ties dating from U.S. support for the creation of Israel in 1948. To date, the United States has provided Israel $174 billion (current, or non-inflation-adjusted, dollars) in bilateral assistance and missile defense funding.

Over the last two decades, including during Israel's ongoing conflict with Hamas, American public attitudes toward Israel as expressed in public-opinion polling have shifted somewhat when compared to previous eras. Though lawmakers continue to vote in favor of U.S. assistance to Israel, there have been calls from some political and ideological groups to reevaluate the long-standing U.S.-Israeli assistance relationship.

In 2016, the U.S. and Israeli governments signed their third 10-year Memorandum of Understanding (MOU) on military aid, covering FY2019 to FY2028. Under the terms of the MOU, the United States pledged to provide—subject to congressional appropriation—$38 billion in military aid ($33 billion in Foreign Military Financing (FMF) grants plus $5 billion in missile defense appropriations) to Israel. While negotiations over the next MOU have yet to start, U.S. and Israeli experts and government officials have already started to formulate proposals to shape future U.S.-Israeli military cooperation.

Since the Hamas-led attacks of October 7, 2023 and Israel's subsequent conflicts in Gaza, Lebanon, and Iran, Congress has provided emergency supplemental military assistance to Israel and appropriated funding beyond the annual MOU terms for joint U.S.-Israeli missile defense programs. In April 2024, Congress passed P.L. 118-50 (Making emergency supplemental appropriations for the fiscal year ending September 30, 2024, and for other purposes). That act included, among other things, $3.5 billion in FMF for Israel. The act also included $5.2 billion in defense appropriations for missile defense ($4 billion) and Israel's new laser defense system, Iron Beam ($1.2 billion).

P.L. 119-4, the Full-Year Continuing Appropriations and Extensions Act, 2025, provides FMF to Israel at the FY2024 base level ($3.3 billion). The act also contains several Israel-specific provisions or anomalies, such as: Section 11206(1) specifies FY2025 FMF for Off-Shore Procurement for Israel (per the terms of the MOU) at $450.3 million; Section 11208(c) reauthorizes loan guarantees to Israel through 2030; and Section 11208(d) reauthorizes annual monetary caps for U.S. additions to the War Reserve Stockpile for Allies program, including the stockpile in Israel, through FY2027 (at $500 million per year). P.L. 119-4 did not include an accompanying explanatory statement specifying defense funding allocations at the line-item level. Section 1422 of the Act required the Department of Defense, after consulting the Defense Appropriations subcommittees, to submit within 45 days "a spending, expenditure, or operating plan" for FY2025 at the same level of detail required for a department report known as Base for Reprogramming Actions. In spring 2025, the Department of Defense released the Base for Reprogramming Actions report, which contained, among other things, $500 million in missile defense for Israel, $47.5 million for the U.S.-Israeli anti-tunneling program, $55 million for the U.S.-Israeli counter-unmanned aerial systems program, and $20 million for "emerging technologies" cooperation.

In the 119th Congress, lawmakers have proposed The United States-Israel Defense Partnership Act of 2025 (H.R. 1229 & S. 554), which would, among other things, authorize additional defense funding for U.S.-Israeli counter-unmanned aerial systems cooperation and anti-tunnel cooperation, and would mandate that the Secretary of Defense engage the "Minister of Defense of Israel in a discussion of the process of the ascension of Israel into the national technology and industrial base (as defined in Section 4801 of Title 10, United States Code)." In the Senate, Senator Bernie Sanders has proposed multiple resolutions disapproving various U.S. arms sales to Israel. As of May 2025, the Senate has voted against discharging the Senate Foreign Relations Committee from further consideration of two resolutions (S.J.Res. 26 and S.J.Res. 33) by votes of 15-83 and 15-82, respectively.

Introduction

This report provides an overview of U.S. foreign assistance to Israel. It includes a review of past aid programs, data on annual assistance, and analysis of current issues, including a description of key events since the October 7, 2023 Hamas-led attacks against Israel and the ensuing conflicts in Gaza and beyond. The information and foreign aid data in this report are compiled by the Congressional Research Service from a number of resources, including CRS communications with various U.S. government agencies, Foreignassistance.gov, and annual State Department Congressional Budget Justifications. For terminology and abbreviations used in this report, see Appendix A. For general information on Israel, see Israel: Background and U.S. Relations in Brief, by Jim Zanotti.

Background and Recent Trends For over half a century, the United States and Israel have maintained strong bilateral ties, based on a number of
factors, including robust domestic U.S. support for Israel and its security; shared strategic goals in factors, including robust domestic U.S. support for Israel and its security; shared strategic goals in
the Middle East; an avowed mutual commitment to democratic values; and historical ties dating the Middle East; an avowed mutual commitment to democratic values; and historical ties dating
from U.S. support for the creation of from U.S. support for the creation of the state of Israel in 1948. U.S. foreign aid has been a major component Israel in 1948. U.S. foreign aid has been a major component
in cementing and reinforcing these ties. U.S. officials and many lawmakers have long considered in cementing and reinforcing these ties. U.S. officials and many lawmakers have long considered
Israel to be a vital partner in the region, and U.S. aid packages for Israel have reflected this Israel to be a vital partner in the region, and U.S. aid packages for Israel have reflected this
calculation. Some U.S. citizens have worked to cultivate U.S. support for Israel since its creation calculation. Some U.S. citizens have worked to cultivate U.S. support for Israel since its creation
in 1948in 1948, and since. Since the 1973 Yom Kippur War, advocates for Israel have engaged in organized, the 1973 Yom Kippur War, advocates for Israel have engaged in organized,
broad-based domestic efforts to foster bipartisan support in Congress for the bilateral relationship, broad-based domestic efforts to foster bipartisan support in Congress for the bilateral relationship,
including for U.S. aid to Israel.including for U.S. aid to Israel.
Table 1. Total U.S. Foreign Aid Obligations to Israel: 1946-2023
2025 current, or non-inflation-adjusted, U.S. dollars in millionscurrent, or non-inflation-adjusted, U.S. dollars in millions
Fiscal Year
Military
Economic

Fiscal Year

Military

Economic

Missile Defense
Total
1946-2020
104,506.200
34,347.500
7,411.409
146,265.110
2021
3,300.000
-
500.000
3,800.000
2022
3,300.000
-
1,500.000
4,800.000
2023
3,300.000
-
500.000
3,800.000
Total
114,406.200
34,347.500
9,911.409
158,665.110
Sources: U.S. Overseas Loans and Grants (Greenbook),

Total

1946-2020

104,506.200

34,347.500

7,411.409

146,265.110

2021

3,300.000

-

500.000

3,800.000

2022

3,300.000

-

1,500.000

4,800.000

2023

3,300.000

-

500.000

3,800.000

2024

6,800.000

-

5,700.000

12,500.000

2025

3,300.000

-

500.000

3,800.000

Total

124,506.200

34,347.500

16,111.409

174,965.110

Sources: U.S. Overseas Loans and Grants (Greenbook), Foreign Assistance.gov,
the U.S. State Department, and the Missile Defense the U.S. State Department, and the Missile Defense
Agency.Agency.
Notes: The Greenbook figures do not include missile defense funding provided by the Department of Defense. The Greenbook figures do not include missile defense funding provided by the Department of Defense.
According to According to State Department/USAID Data Services as of January USAID Data Services as of January 20232025, in constant , in constant 20212024 U.S. U.S. dol arsdollars (inflation-adjusted), total (inflation-adjusted), total
U.S. aid to Israel obligated from 1946-U.S. aid to Israel obligated from 1946-20232024 is an estimated $298 billion.

Over the past few years, some Members of Congress have become more openly critical1 of U.S. military aid to Israel and have focused more on issues of Palestinian human rights.2 This trend has accelerated since the Hamas-led attacks of October 7, 2023 and the ensuing war in Gaza, with its associated humanitarian crisis.3 At the same time, many other Members of Congress have continued to voice support of continued U.S. support for Israel.4 Congressional majorities have continued to vote consistently in favor of U.S. military aid to Israel through the appropriations process,5 though some Members have expressed opposition to unconditional U.S. security assistance by, for example, more frequently voting for resolutions of disapproval aimed at halting certain U.S. arms sales to Israel (see below).6

U.S. Military Aid Policy to Israel During Wartime: 2023-2025

Israel and Hamas's ongoing war in Gaza following the Hamas-led attacks of October 7, 2023 will likely be a subject of contested scholarly research for decades within the larger ambit of the Israeli-Palestinian conflict. One possible subtopic may be how U.S. officials and lawmakers treated U.S. military aid to Israel during the war. In contrast to routinely publishing U.S. security cooperation "fact sheets" that summarized assistance for Ukraine in its war with Russia,7 the Department of State's Bureau of Political-Military Affairs under the Biden Administration did not publish a summary regarding conflict-related assistance for Israel until January 20, 2025.8 The following is a narrative description based on open sources of important events that have transpired throughout the war pertaining to U.S. assistance to Israel within the Biden and Trump Administrations and Congress.9

President Biden's Immediate Response

In the immediate aftermath of the Hamas-led October 7, 2023 attacks against Israel, President Joe Biden announced that his Administration would surge "additional military assistance, including ammunition and interceptors to replenish Iron Dome" so that "Israel does not run out of these critical assets to defend its cities and its citizens."10 President Biden's order resulted in hundreds of aircraft deliveries and sea shipments to Israel of tens of thousands of tons of munitions and weapons systems.11 When U.S. resupply operations began in October 2023, President Biden emphasized "the critical need for Israel to operate by the laws of war. That means protecting civilians in combat as best as they can."12 In an October 2023 Oval Office speech, President Biden announced an emergency supplemental budget request to support U.S. partners, including Ukraine and Israel; the President sought over $14 billion in Israel-related funding.13

Figure 1. U.S. Military Equipment Arrives in Israel

December 2023

Source: Israeli Ministry of Defense.

The United States "Leases" Its Own Iron Dome Batteries Back to Israel

After receiving two bipartisan congressional letters14 calling on the Biden Administration to provide Israel with two Iron Dome batteries previously purchased by the U.S. Army, the Administration announced on October 24, 2023 that it would transfer the batteries to Israel; the Pentagon did not publicly indicate the terms and legal authorities underpinning the planned transfer.15 According to one U.S. defense official, the Iron Dome agreement was conducted as a "cost to lease under an FMS [foreign military sales] case: [It] was the fastest way to get Israel the Iron Dome batteries and the missiles."16

Early Congressional Attempts to Condition Aid

Several months into the war, as Palestinian civilian casualties mounted, some Members of Congress began to call for conditioning aid to Israel. In December 2023, Senator Bernie Sanders introduced S.Res. 504, a privileged resolution, which would have mandated that the State Department provide Congress with information on Israel's human rights practices within 30 days of passage, pursuant to Section 502B(c) of the Foreign Assistance Act of 1961. After receiving any such report, Congress, by joint resolution, may act to terminate, restrict, or continue security assistance to Israel. On January 16, 2024, the Senate voted 72-11 to table a motion to discharge the Senate Foreign Relations Committee from further consideration of S.Res. 504.17 In addition, Senator Chris Van Hollen introduced an amendment to a Senate supplemental appropriations bill (S.Amdt. 1389 to H.R. 815) which would have, prior to the disbursement of defense articles to a recipient of U.S. security assistance, required the President to obtain assurances that "the recipient country will cooperate fully with any United States efforts and United States-supported international efforts to provide humanitarian assistance to civilians in an area of conflict where United States defense articles or defense services are being used by the recipient."

Biden Administration uses Emergency Authorities for Arms Sales to Israel

For the first six months of the war, most U.S. Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) to Israel were previously approved for delivery and accelerated, taken from the U.S. stockpile in Israel (known as War Reserve Stocks for Allies-Israel, or WRSA-I), and/or were not notified to Congress because their dollar value fell below the prior notice threshold for transfers to Israel.18 Between October and December 2023, there were two FMS cases notified to Congress under emergency circumstances that therefore bypassed congressional review.19

Biden Administration's National Security Memorandum 20

Amidst continued international scrutiny of Israel's conduct during the war, the Biden Administration took additional steps aimed at promoting adherence to international law and accountability for U.S. arms deliveries to Israel. In February 2024, President Biden issued NSM-20, a National Security Memorandum (an executive branch policy document, not standing U.S. law) requiring that prior to the transfer of any U.S. defense article, the Departments of State and Defense must obtain "credible and reliable" written assurances from the recipient country that it will use any such defense articles in accordance with international humanitarian law and, as applicable, other international law. It also required that in any area where such defense articles are used, the "recipient country will facilitate and not arbitrarily deny, restrict, or otherwise impede the transport or delivery" of humanitarian assistance.20 NSM-20 also required the Secretaries of State and Defense to assess for Congress whether U.S. defense articles have been used after the memorandum's issuance in a manner not consistent with international law. In March, Israel provided its recipient country assurances to the United States.

Following the issuance of NSM-20, there was continued scrutiny from some lawmakers,21 in the context of additional reports of U.S. munitions used in airstrikes which resulted in civilian casualties of Palestinians and others,22 and Israel's errant April 1, 2024 targeting of World Central Kitchen aid workers. That month, President Biden reportedly toughened his calls for increased humanitarian access and protection of aid workers.23 During his April 4 phone call with Prime Minister Netanyahu, according to the White House readout, President Biden "made clear that U.S. policy with respect to Gaza will be determined by our assessment of Israel's immediate action" on steps to address civilian harm, humanitarian suffering, and the safety of aid workers.24 Some analysts assessed that President Biden had implicitly threatened "to slow U.S. arms transfers to Israel or to temper U.S. support at the U.N." if Israel did not take certain steps.25

In May 2024, the Biden Administration released its report to Congress under Section 2 of NSM-20, concluding (according to a document released online by an advocacy group stating that it is a copy of that report) that "given Israel's significant reliance on U.S.-made defense articles, it is reasonable to assess that defense articles covered under NSM-20 have been used by Israeli security forces since October 7 in instances inconsistent with its IHL [International Humanitarian Law] obligations or with established best practices for mitigating civilian harm."26 Despite the concerns raised, the report, as it appeared online, assessed Israel's March assurances (along with those of the other countries covered in the report) to be "credible and reliable so as to allow the provision of defense articles covered under NSM-20 to continue."

Congress Passes Supplemental Appropriations for Israel

Between 2023 and 2024, Congress considered and passed multiple versions of supplemental legislation amidst a broader public debate over conditioning aid and restricting U.S. arms sales to Israel, in the context of continued reports of some Israeli air strikes resulting in civilian casualties as well as a deteriorating humanitarian situation in Gaza.27 In March 2024, Congress also passed P.L. 118-47, the Further Consolidated Appropriations Act, 2024, which includes $3.3 billion in FMF for Israel and $500 million in missile defense funding, per the terms of the MOU.

On April 13, 2024 Iran initiated the first-ever direct military action against Israel from Iranian territory in the form of aerial attacks (drones and ballistic and cruise missiles). Iran stated that the attacks were in retaliation for an April 1 strike reportedly by Israel against a building within the Iranian embassy compound in Damascus, Syria. Eleven days after Iran's direct attack on Israel, and four days after an apparent Israeli strike in Iran that may have been sufficiently narrow in scope to avoid additional immediate escalation, Congress passed P.L. 118-50 (Making emergency supplemental appropriations for the fiscal year ending September 30, 2024, and for other purposes). That act included, among other things (see Table 2), $3.5 billion in FMF for Israel28 ($769.3 million or more of which may be spent on Israeli equipment) to remain available through FY2025.29 The act also included $5.2 billion in defense appropriations for missile defense ($4 billion) and Israel's new laser defense system, Iron Beam ($1.2 billion)—the first dedicated U.S. funding for this system.30

Table 2. U.S. Foreign Aid to Israel During the Gaza War

(in millions of current U.S. dollars)

Law

Foreign Military Financing

Missile Defense

Missile Defense - Iron Beam

Other

P.L. 118-50, Division A—Israel Security Supplemental Appropriations Act, 2024

$3,500.00

$4,000.00

$1,200.00

n/a

P.L. 118-47, Further Consolidated Appropriations Act, 2024

$3,300.00

$500.00

n/a

$95.50

P.L. 118-42, Consolidated Appropriations Act, 2024

n/a

n/a

n/a

$13.00

Total

$6,800.00

$4,500.00

$1,200.00

$108.50

Source: congress.gov.

Notes: The "Other" column includes Department of Defense appropriations for counter-tunnel and counter-drone programs, U.S. contributions to binational foundations, and support for migrants.

Biden Administration Reviews Sales of Aerial Munitions to Israel

In spring 2024, as Israel prepared for a ground offensive in southern Gaza (Rafah), U.S. officials pressed Israel not to proceed with an offensive in Rafah without clearly planning for civilian safety and welfare.31 Some lawmakers also warned against an Israeli military operation in Rafah, saying that they would vote to condition aid to Israel if such an operation ensued without making provisions for the safety and welfare of Gaza's civilian population.32 In early May, as Israeli forces approached Rafah, President Biden said in a CNN interview that "I have made it clear to Bibi [Netanyahu] and the war cabinet they're not going to get our support [weapons and artillery shells] if, in fact, they're going into these population centers."33

After Israel launched major ground operations in Rafah, U.S. officials confirmed reports that the Biden Administration was "reviewing some near-term security assistance" for Israel and had paused a shipment of 2,000-pound and 500-pound bombs, based on concern about their potential use in Rafah.34 Though the Administration later released the shipment of 500-pound bombs,35 it continued to review the 2,000-pound bomb shipment until President Biden's term ended.

International Restrictions on Arms Sales to/from Israel Along with the Biden Administration's withholding of bomb shipments, other nations also suspended or reduced some of their arms exports to Israel during the war. Over the past decade, the United States and Germany have been Israel's main weapons suppliers (see Figure 2). Actions to either limit some exports to, or imports from, Israel, have come from countries such as: Britain,36 Belgium, Canada, Columbia,37 Germany,38 Italy,39 the Netherlands,40 and Spain.41 In October 2024, French President Emmanuel Macron called on the international community to cease supplying Israel with weapons that could be used in either Gaza or Lebanon.42

Figure 2. Who Supplies Arms to Israel?

(% of Total Weapons Sold to Israel, 2013-2023)

Source: Stockholm International Peace Research Institute, estimated volume of major arms transfers, 2013-2023.

Congressional Opposition to Biden's "Arms Embargo"

While some Members of Congress continued to support the application of U.S. laws that would restrict U.S. aid to recipient countries in various circumstances,43 other Members rejected calls for conditioning U.S. aid to Israel and criticized the Administration for pressuring the Israeli government amid ongoing hostilities against foreign terrorist organizations such as Hamas and Hezbollah.44 On April 9, 2024, H.Res. 1117 was introduced in the House. Among other things, it opposed "efforts to place one-sided pressure on Israel with respect to Gaza." On May 16, 2024, the House passed (224-187) H.R. 8369, the Israel Security Assistance Support Act, which, among other things, would have prohibited FY2024 or earlier funds from being used to withhold defense items/services to Israel. Some lawmakers accused the Administration of not only publicly withholding the shipment of 2,000-pound bombs, but also conducting an "arms embargo" against Israel by delaying consideration of other U.S. sales.45 The Biden Administration claimed that by mid-2024, it could no longer bypass Congress in approving weapons sales, and seeking congressional approval appeared to contribute to making the process of clearing FMS and DCS cases longer than in the early months of the war.46

Biden Administration and Key Members of Congress Approve F-15 Sale

In summer 2024, after Israel launched a military operation in Rafah that then-Secretary Blinken argued reflected restraint as compared to its original plans,47 Netanyahu criticized the Administration publicly for withholding weapons.48 Both Israel and Hamas then resisted various ceasefire proposals, and the Administration accelerated efforts to finalize a series of major arms sales to Israel, including for F-15 fighter aircraft.49 In June, the foreign affairs committee leaders in the House and Senate, after a period of consideration, signed off on this major package of FMS sales to Israel.50 In August 2024, during a congressional recess, the Administration formally notified Congress of five potential FMS to Israel for over $20 billion total, including up to 50 new F-15IA fighter aircraft and F-15 upgrades for $18.82 billion.51

On September 25, 2024, Senator Bernie Sanders introduced six joint resolutions of disapproval, or JRDs (S.J.Res. 111, S.J.Res. 112, S.J.Res. 113, S.J.Res. 114, S.J.Res. 115, and S.J.Res. 116). Five of these JRDs corresponded to the five FMS sales mentioned above;52 a sixth resolution corresponded to a Direct Commercial Sale (DCS) to Israel of Joint Direct Attack Munitions, or JDAMs.53 On November 6, 2024, the Israel Ministry of Defense and Boeing signed a procurement contract in which Israel will acquire 25 advanced F-15IA fighter jets over a number of years for more than $5 billion.

Biden Administration Warning to Israel over Gaza Humanitarian Aid

On October 13, 2024, senior U.S. officials sent a letter to their Israeli counterparts, which the State Department reportedly described as a "private diplomatic communication."54 The letter stated that "Israel must, starting now and within 30 days," act on several "concrete measures" vis-a-vis Gaza, such as enabling a surge of humanitarian aid into Gaza. The letter stated that "[f]ailure to demonstrate a sustained commitment to implementing and maintaining these measures may have implications for U.S. policy" under existing law. After the 30-day period, the Department of State said that it had not made an assessment that the Israelis are in violation of U.S. law, and that it would continue monitoring Israeli actions and assessing their compliance with U.S. law.55

Senate Considers Resolutions of Disapproval

On November 20, 2024, the Senate failed to discharge the Senate Foreign Relations Committee from further consideration of three JRDs (S.J.Res. 111, S.J.Res. 113, and S.J.Res. 115), pertaining to proposed sales of guided and unguided munitions.56 In each of the three instances, at least 17 Senators voted in favor of discharging the committee, with 19 voting for discharging the committee from further consideration of S.J.Res. 113 (pertaining to a proposed sale of mortar cartridges) and 78 opposing.

Biden Administration Pre-Notifies Congress of Major Sales to Israel

In late November 2024, the Administration approved and pre-notified (an informal step generally taken before providing formal notification under the Arms Export Control Act) the foreign relations committees of a possible $680 million package of Joint Direct Attack Munitions (JDAMs) kits and small diameter bombs to Israel.57 In early January 2025, media reports indicated that the Administration had notified Congress of several additional possible munitions sales totaling $8 billion, including guidance kits for MK-84 2,000-pound bombs and MK-82 500-pound bombs, BLU-109 bunker buster bombs, AMRAAM and Hellfire missiles, and 155mm artillery rounds. At least $6.75 billion would fund two different kinds of precision kits—one for small diameter bombs, and one for 2,000-pound bombs—unnamed officials said.58

Israel Opts to Produce More Armaments Domestically

In January 2025, Israel's Ministry of Defense signed contracts with Israeli firms to produce some munitions previously purchased from outside suppliers, including the United States. According to one Israeli defense analyst, "Israel has refrained, until recently, in producing certain munitions primarily because of profit considerations.... It is cheaper to buy them with the money allocated to Israel by the U.S."59 Some reports suggested that by fall 2024, some of Israel's munitions supplies had become low, particularly missile defense interceptors.60

President Trump Releases Bomb Shipment and Exempts Israel from Aid Freeze

In late January 2025, President Trump announced that he had released a Biden Administration hold on the delivery of 1,800 MK-84, 2,000-pound bombs destined for Israel.61 At the same time, the State Department issued guidance regarding the execution of an Executive Order freezing all U.S. foreign aid; the guidance exempted U.S. foreign aid to Israel and Egypt from the freeze (along with life-saving global humanitarian food aid).62

Trump Administration Bypasses House Foreign Affairs Committee Review and Notifies Congress of over $8 billion in Arms Sales to Israel

On February 7, 2025, the Trump Administration officially notified Congress of four FMS/DCS sales to Israel totaling $8.4 billion, of which one case totaled $6.75 billion for precision-guided and un-guided munitions and guidance conversion kits – the largest single munitions sale to Israel since 2015.63 According to one analysis, Israel's request for large numbers of guidance kits, but not certain guided bombs, may indicate its willingness to produce certain munitions domestically.64 Reportedly, as previously mentioned, the Biden Administration had already approved the sales65 and pre-notified these cases to the foreign affairs committees in each chamber; after the presidential transition, although (according to the New York Times) the Ranking Member on the House Foreign Affairs Committee had not cleared the sales, the Trump Administration proceeded to formally notify Congress.66 Clearance of U.S. arms sales cases by congressional committee leaders prior to official notification is a long established, normative process developed between the executive and legislative branches. It is not codified in law.

On February 20, Senator Sanders introduced JRDs corresponding to each sale.67

Lawmakers Introduce the United States-Israel Defense Partnership Act of 2025

On February 12, 2025, a group of bipartisan House and Senate lawmakers introduced H.R. 1229 and S.554, respectively, the United States-Israel Defense Partnership Act of 2025. The bills would, among other things

  • establish a new U.S.-Israeli counter-unmanned aerial systems program (CUAS) authorized at a funding level of $150 million per year through FY2030;
  • raise the funding cap on the existing U.S.-Israeli CUAS program from $55 million annually to $75 million annually through calendar year 2028;
  • direct the Department of Defense to establish a Defense Innovation Unit office in Israel in order to collaborate with the private sector to counter Iran's dual-use defense technologies; and
  • mandate that the Secretary of Defense engage the "Minister of Defense of Israel in a discussion of the process of the ascension of Israel into the national technology and industrial base (as defined in Section 4801 of Title 10, United States Code)."
Trump Administration Rescinds NSM-20

According to the Washington Post, on February 21, 2025 then-National Security Adviser Michael Waltz rescinded President Biden's NSM-20.68 While some lawmakers decried the move,69 others welcomed it.70

Trump Administration Circumvents Congressional Review of Arms Sales to Israel

On February 28, 2025, the Trump Administration, citing Section 36(b) of the Arms Export Control Act (AECA),71 declared that an "emergency exists," that requires the sales to Israel of various weapons systems, such as general purposes bombs, JDAMs, and Caterpillar D9 bulldozers.72 In sum, the President issued an emergency declaration for four FMS cases to Israel, totaling nearly $4 billion. Amongst these four cases, Israeli press reports had focused on the sale of D9 bulldozers. In late 2024, these items had been reported as awaiting export approval by the Biden Administration, alongside speculation that the Biden Administration may have delayed approval because of its apparent opposition to Israeli use of bulldozers to raze Palestinian homes.73 Israeli media noted that before leaving office, the Biden Administration had begun to issue export licenses for some of the D9s sought by Israel, possibly in part due to ceasefire agreements.74 One report noted that the ranking members of the foreign affairs committees in Congress had placed a hold on at least two of the four pre-notified cases, including the sale of bulldozers.75 Upon issuing the emergency declaration, Secretary of State Marco Rubio stated

I have signed a declaration to use emergency authorities to expedite the delivery of approximately $4 billion in military assistance to Israel. The decision to reverse the Biden Administration's partial arms embargo, which wrongly withheld a number of weapons and ammunition from Israel, is yet another sign that Israel has no greater ally in the White House than President Trump. Since taking office, the Trump Administration has approved nearly $12 billion in major FMS sales to Israel. This important decision coincides with President Trump's repeal of a Biden-era memorandum which had imposed baseless and politicized conditions on military assistance to Israel at a time when our close ally was fighting a war of survival on multiple fronts against Iran and terror proxies. The Trump Administration will continue to use all available tools to fulfill America's long-standing commitment to Israel's security, including means to counter security threats.76

On March 10, Senator Sanders again issued new JRDs for the aforementioned four sales (S.J.Res.32, S.J.Res.33, S.J.Res.34, and S.J.Res.35).

Trump Administration Notifies Congress of Rifle Sales to the Israeli National Police On March 6, 2025, the Trump Administration notified Congress that it was issuing export licenses for three DCS cases to Israel of various automatic rifles to the Israeli national police requested by Israel before the Hamas attacks of October 7, 2023.77 Previously, during
is an estimated $260 bil ion.
Some of the major advocacy organizations engaged on this issue, such as the American Israel
Public Affairs Committee (AIPAC) and Christians United for Israel (CUFI), express unequivocal
support for U.S. security assistance to Israel.1 Another major advocacy organization, J Street,
supports continued security assistance at current levels while arguing that U.S. funds should not
be used to “trample on Palestinian rights” or “to implement or maintain annexation, the expansion
of settlements, the demolition of Palestinian homes or other moves that entrench occupation” in
the West Bank.2 Some political groups that are not focused exclusively on Israel matters have
advocated for increased scrutiny of U.S. military aid to Israel, particularly during the May 2021
conflict in Israel and Gaza.3 These groups have stimulated debates about possibly conditioning or
cutting foreign aid to Israel,4 or supporting boycotts and sanctions.5

1 For example, see AIPAC’s and CUFI’s policy agendas respectively at https://www.aipac.org/s/policy-agenda and
https://cufi.org/about/policy/policy-agenda/
2 See, J Street’s position on aid at https://jstreet.org/policy/us-security-assistance-to-israel/#.YdR4gGjMKUk.
3 Laura Kelly, “Progressive Groups Call for Biden to Denounce Evictions of Palestinians as 'War Crimes,'” The Hill,
May 13, 2021.
4 “America’s Democrats are increasingly divided over Israel,” The Economist, May 14, 2021.
5 Sean Sullivan, “Supporters of a Tougher Line on Israel Split over Tactics and Message,” Washington Post, May 30,
2021. See also, CRS Report R44281, Israel and the Boycott, Divestment, and Sanctions (BDS) Movement, coordinated
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link to page 9 U.S. Foreign Aid to Israel

Israel’s New Coalition Government: Implications for U.S. Aid to Israel
Prime Minister Benjamin Netanyahu’s inclusion of ultra-nationalist parties in the coalition government he formed
in December 2022 may, according to some commentators, strain relations with the United States.6 Though Biden
Administration officials call their commitment to Israel’s security “ironclad,”7 some former U.S. officials have
advocated for the Biden Administration to communicate to Israel that while the United States wil continue to
provide military aid, it wil restrict the provision of “offensive weapons” for “malign Israeli actions in Jerusalem or
the occupied territories.”8 Some former Israeli officials have argued that regardless of Israel’s political orientation,
U.S. aid to Israel should remain unconditional given the national security threats Israel faces and its value to U.S.
interests in the Middle East.9 The Biden Administration has stated that it wil continue to “support the two state
solution and oppose policies that endanger its viability,” and that it wil “gauge the government by the policies it
pursues rather than individual personalities.”10 In one December 2022 media article, two unnamed U.S. officials
were reported as saying that President Joseph Biden has “ruled out cutting U.S. military aid to Israel.”11 In
February 2023, after the Israeli government authorized West Bank settlement expansion in contravention of U.S.
requests, a reporter asked State Department Spokesperson Ned Price whether the Biden Administration was
considering taking any punitive measures against Israel. In response, Spokesperson Price remarked that a
component of close U.S.-Israeli relations is the U.S. “rock-solid commitment to Israel’s security,” and that despite
steps Israel may take to “undermine the prospect” for a two-state solution to the Israeli-Palestinian conflict, the
United States is going to “continue to stand by Israel’s side when it comes to the security threats that it faces.”12
U.S. Aid and Israel’s Advanced Military Technology
Almost all current U.S. aid to Israel is military assistance.13 U.S. military aid has helped
transform Israel’s armed forces into one of the most technologically sophisticated militaries in the
world (see, “Qualitative Military Edge (QME)”). U.S. military aid also has helped Israel build
its domestic defense industry, which now ranks as one of the top global arms exporters.14 Israeli
defense companies, such as Israel Aerospace Industries (IAI), Rafael, and Elbit Systems, export
nearly 70% of their products.15 Rather than producing large-scale hardware (combat aircraft,

by Jim Zanotti.
6 See, for example, Dennis Ross and David Makovsky, “A Narrow Government with Ben Gvir and Smotrich Threatens
US-Israel Ties,” Times of Israel, November 2, 2022.
7 U.S. Department of Defense, Remarks by Secretary of Defense Lloyd J. Austin III at the AIPAC Political Leadership
Forum, January 10, 2023.
8 Aaron David Miller and Daniel C. Kurtzer, “Biden should respond boldly to a radical Netanyahu government,”
Washington Post, November 29, 2022.
9 Chuck Freilich and Danny Ayalon, “Military aid to Israel must remain unconditional,” Jerusalem Post, December 14,
2022.
10 See, The White House, Statement from President Joe Biden on the New Government of the State of Israel, December
29, 2022 and U.S. State Department, Secretary Antony J. Blinken At the J Street National Conference, December 4,
2022.
11 Nahal Toosi, “Biden’s strategy for a far-right Israel: Lay it all on Bibi,” Politico, December 20, 2022.
12 U.S. Department of State, Department Press Briefing, February 13, 2023.
13 For many years, U.S. economic aid helped subsidize a lackluster Israeli economy, but since the rapid expansion of
Israel’s high-tech sector and overall economy in the 1990s (sparked partially by U.S.-Israeli scientific cooperation),
Israel has become one of the world’s most dynamic economies (as of 2022, Israel’s Gross Domestic Product per capita
ranks 14th worldwide)., Israel and the United States agreed to gradually phase out economic grant aid to Israel. In
FY2008, Israel stopped receiving bilateral Economic Support Fund (ESF) grants. The country had been a large-scale
recipient of grant ESF assistance since 1971.
14 According to the Stockholm International Peace Research Institute (SIPRI), from 2017 to 2021, Israel was the 10th
largest arms exporter worldwide, accounting for 2.4% of world deliveries. See, “Trends in International Arms
Transfers, 2021,” SIPRI Fact Sheet, March 2022.
15 Sasson Hadad, Tomer Fadlon, and Shmuel Even (editors), “Israel’s Defense Industry and US Security Aid,” INSS,
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U.S. Foreign Aid to Israel

tanks), Israeli companies generally export advanced technological products (such as missile
defense systems, unmanned aerial vehicles, cybersecurity products, radar, and electronic
communications systems) to numerous customers globally. India, Azerbaijan, and Vietnam are
Israel’s three largest export markets.16
Figure 1. Israel’s Annual Arms Exports: 2012-2021

Source: Created by CRS. Information from Israel Ministry of Defense, International Defense Cooperation
Directorate (SIBAT), as reported by various media sources.
Notes: SIBAT does not produce a specific list of Israeli customers by country.
As Israel has become a global leader in certain niche defense technologies, Israeli defense exports
to the U.S. market have grown substantially.17 According to one report, the U.S. military
purchased $1.5 billion worth of Israeli equipment in 2019, representing a five-fold increase from
two decades before.18 In addition to the U.S. purchase of Iron Dome (see below), the United
States has purchased, among other items, the following Israeli defense articles: Trophy active
protection systems for M1 Abrams tanks, enhanced night-vision goggles, laser range finders for
the U.S. Marines, helmets for F-35 fighter pilots, wings for the F-35, and a system of towers,
electronic sensors, radars, and cameras for use along the U.S.-Mexican border. The U.S. Army is
currently evaluating whether to purchase Rafael’s SPIKE Non-Line of Sight missile to be
mounted on AH-64E Apache Helicopters.19

Memorandum No. 202, July 2020.
16 India is the largest buyer of Israeli defense equipment. See, Rina Bassist, “Israel, India Advance on Phalcon AWACS
Megadeal,” Al Monitor, September 3, 2020.
17 Per a 1987 Memorandum of Understanding between the United States and Israel as amended (Reciprocal Defense
Procurement and Acquisition Policy Memorandum of Understanding), Israeli and U.S. defense contractors are able to
compete for contracts in both countries on an equal basis. For the text of the MOU, see https://www.acq.osd.mil/dpap/
Docs/mou-israel.pdf.
18 Michael Eisenstadt and David Pollock, “Asset Test 2021: How the U.S. Can Keep Benefiting from Its Alliance with
Israel,” Transition 2021: Policy Notes for the Biden Administration, The Washington Institute for Near East Policy,
February 2021.
19 Jen Judson, “Rafael pitches latest Spike variant for US Army’s long-range weapon for helos,” Defense News, June
17, 2022.
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3

U.S. Foreign Aid, then-Secretary Blinken had not approved the export licenses, reportedly due to some congressional concern that the weapons could be used in the West Bank against Palestinians in "acts of unjustified violence" by Israeli forces or could fall into the hands of settler militias, according to the New York Times.78 Congressional notification of the issuing of the licenses corresponded with the visit of an ultra-nationalist member of the Netanyahu government, Finance Minister Bezalel Smotrich, to Washington, DC. On March 27, Senator Sanders again issued new JRDs for the aforementioned three sales (S.J.Res.40, S.J.Res.41, and S.J.Res.42). Second Round of Senate Voting on JRDs since October 7

On April 3, 2025, the Senate voted against discharging the Senate Foreign Relations Committee from further consideration of two JRDs (S.J.Res.26 and S.J.Res.33) by votes of 15-83 and 15-82, respectively.

U.S. Arms Deliveries to Israel since October 2023

On May 27, 2025, the Israeli Defense Ministry reported that the United States had dispatched 800 transport planes and 140 ships to deliver more than 90,000 tons of armaments and military equipment to Israel since the start of the war in October 2023.79

U.S. Aid and Israel's Advanced Military Technology Almost all current U.S. aid to Israel is military assistance.80 U.S. military aid has helped transform Israel's armed forces into one of the most technologically sophisticated militaries in the world (see "Qualitative Military Edge (QME)"). U.S. military aid also has helped Israel build its domestic defense industry, which now ranks as one of the top global arms exporters.81 Israeli defense companies, such as Israel Aerospace Industries (IAI), Rafael, and Elbit Systems, export nearly 70% of their products82 and combined, those three companies account for 70% of all Israeli defense exports.83 Rather than producing large-scale hardware (combat aircraft, tanks), Israeli companies generally export advanced technological products (such as missile defense systems, unmanned aerial vehicles, cybersecurity products, radar, and electronic communications systems) to numerous customers globally. India (34%), the United States (13%), and the Philippines (8.1%) are Israel's largest defense export markets as of 2025.84 In 2024 and 2025, several reports have suggested that despite global criticism of Israel's wars in Gaza and Lebanon, foreign demand for Israeli defense products has surged (see Figure 3).85 Recently, there have been several major Israeli exports of defense equipment, including
  • 2023: Finland – David's Sling Long Range Air Defense System ($330 million);
  • 2023: Germany – Arrow 3 Missile Defense System ($4.3 billion);
  • 2024: Slovakia—Barak MX Integrated Air Defense System ($579.1 million); and
  • 2024: Netherlands – Elbit Self Protection Suites for Aircraft ($175 million) 86

Figure 3. Israel's Annual Arms Exports: 2012-2024

Source: Created by CRS. Information from Israel Ministry of Defense, International Defense Cooperation Directorate (SIBAT), as reported by various media sources.

Notes: SIBAT does not produce a specific list of Israeli customers by country.

As Israel has become a global leader in certain niche defense technologies, Israeli defense exports to the U.S. market have grown substantially.87 The United States has purchased from Israel, among other items, the following Israeli defense articles: the Iron Fist Active Protection Systems (APS) for U.S. Bradley infantry fighting vehicles, Trophy APS for M1 Abrams tanks, enhanced night-vision goggles, laser range finders for the U.S. Marines, helmets for F-35 fighter pilots, wings for the F-35, and portable satellite communication (SATCOM) terminals.

To facilitate the unhindered access to some key supplies, the Department of Defense (DOD) has entered into bilateral Security of Supply Arrangements (SOSAs) with selected foreign governments to secure the mutual timely provision of defense-related goods and services during peacetime, emergencies, and armed conflict.88 SOSAs allow DOD to request prioritized performance of contracts from companies in SOSA-signatory nations, and for SOSA signatories to request the same from U.S. firms. In 2023, the United States and Israel signed a (SOSA) agreement.89

Israeli Exports of Spyware

Revelations regarding the export of Israeli software have drawn attention to Israel's Defense Export Controls Agency (DECA), which was established in 2006. In 2021, after investigative reports indicated the Israeli-owned cybersecurity firm NSO Group had sold mobile-phone software to foreign governments that then used it to spy on other heads of state, dissidents, and human rights activists, the Israeli media looked more closely at DECA's export licensing process.
to Israel


Israeli Exports of Spyware
Revelations regarding the export of Israeli software have drawn attention to Israel’s defense export oversight,
which has been overseen by Israel’s Defense Export Controls Agency (DECA) since 2006. In 2021, after
investigative reports revealed the Israeli-owned cyber security firm NSO Group had sold mobile-phone software
to foreign governments, which then used it to spy on other heads of state, dissidents, and human rights activists,
the Israeli media looked more closely at DECA’s export licensing process. According to one report, “The
limitations on such sales are exceedingly few. Israel’s current law on defense exports requires the Defense
Ministry to make ‘considerations regarding the end user or the end use,’ but does not expressly forbid arms sales
to human rights violators.. . the Defense Ministry’s Defense Export Controls Agency, which has a small staff and
responsibility for overseeing thousands of export licenses, lacks the necessary knowledge about the countries
purchasing Israeli firms’ technology to assess how the products wil be used.”20 Another report noted that since
2007, the Israeli Defense Ministry had approved all arms export licenses requiring government approval.21
The U.S. Commerce Department’s Bureau of Industry and Security added NSO to its “Entity List” for engaging in
activities that are contrary to the national security or foreign policy interests of the United States.22 In December In December
2021, Israel altered its export licensing policy for cybersecurity software, requiring purchasers to pledge they 2021, Israel altered its export licensing policy for cybersecurity software, requiring purchasers to pledge they wil
will not use Israeli equipment to commit not use Israeli equipment to commit "terrorist actsterrorist acts" or or "serious crime,serious crime," as defined by DECA. as defined by DECA.23
90 Since then, DECA has increased its oversight of cyber technology exports and limited to 37 the number of countries eligible to procure Israeli cyber technology.91 In February 2024, the State Department announced that it would impose visa restrictions for individuals who abused the use of commercial spyware, as well as for those who facilitated such actions.92 The United States and Israel are in the process of gradually phasing out IsraelThe United States and Israel are in the process of gradually phasing out Israel's ability to use a s ability to use a
portion of its U.S. military assistance for domestic purchases (also known as Off-Shore portion of its U.S. military assistance for domestic purchases (also known as Off-Shore
Procurement, see Figure 2);Procurement);93 as a result, some Israeli companies have opened subsidiaries that are as a result, some Israeli companies have opened subsidiaries that are
licensed to do business in the United States. Incorporating in the United States enables Israeli licensed to do business in the United States. Incorporating in the United States enables Israeli
companies to both increase business with the U.S. military and, in some cases, conduct U.S. aid-companies to both increase business with the U.S. military and, in some cases, conduct U.S. aid-
financed military deals with the Israeli government. financed military deals with the Israeli government. As more Israeli companies have obtained a
The establishment of a U.S. presenceU.S. presence, it by more Israeli companies has led to has led to increasedan increase in defense partnerships between U.S. and Israeli firms, defense partnerships between U.S. and Israeli firms,
whereby weapons development whereby weapons development is donetakes place in Israel and production in Israel and production is completed in the United in the United
States.States.2494 Elbit Systems of America (Fort Worth, Texas), a wholly owned subsidiary of Israel Elbit Systems of America (Fort Worth, Texas), a wholly owned subsidiary of Israel’s
's Elbit Systems, is one of the largest Israeli-owned firms operating in the United States. It acts as a Elbit Systems, is one of the largest Israeli-owned firms operating in the United States. It acts as a
purchasing agent for the Foreign Military Financing (FMF) and Foreign Military Sales purchasing agent for the Foreign Military Financing (FMF) and Foreign Military Sales (FMS)
programs.25
programs.95 In 2022, Leonardo DRS (a subsidiary of the Italian firm Leonardo SpA) purchased Israeli firm RADA Electronics Industries, in one of the first major acquisitions of an Israeli firm by a U.S.-based firm.96 In April 2025, General Atomics Electromagnetic Systems (GA-EMS) and Rafael Advanced Defense Systems announced the joint manufacture of a long-range, precision-guided strike missile to be constructed in Tupelo, Mississippi.97 As long as these subsidiaries follow U.S. guidelines (each must be a U.S.-based supplier, As long as these subsidiaries follow U.S. guidelines (each must be a U.S.-based supplier,
manufacturer, reseller, or distributor incorporated or licensed to do business in the United States manufacturer, reseller, or distributor incorporated or licensed to do business in the United States
and registered with the Israeli Ministry of Defense Mission in New York),and registered with the Israeli Ministry of Defense Mission in New York),2698 they are eligible they are eligible
(pending U.S. government approval) to enter into FMF-financed Direct Commercial Sales (DCS)

20 See, Judah Ari Gross, “NSO Group Affair is Latest in Israel’s Long History of Arming Shady Regimes,” Times of
Israel
, July 28, 2021.
21 Oded Yaron, “Israeli Governments Approved Every Single Arms Deal Brought to Them Since 2007,” Haaretz,
December 2, 2022.
22 Available online at https://www.commerce.gov/news/press-releases/2021/11/commerce-adds-nso-group-and-other-
foreign-companies-entity-list.
23 See, “Israel Issues Stricter Guidelines for use of its Cyber Tech Exports,” Reuters, December 6, 2021.
24 Ora Coren, “Israel's Arms Makers to Become more American under New Military-Aid Pact,” Ha’aretz, updated
April 10, 2018.
25 Available online at https://elbitsystems.com/majior-subsidiaries/.
26 CRS conversation with U.S. State Department, Bureau of Political-Military Affairs (PM), January 6, 2022.
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U.S. Foreign Aid to Israel

contracts27 with the Israeli government.28 Reoccurring language in annual Department of State,
Foreign Operations, and Related Programs (SFOPS) appropriations bills,29 as implemented by
Department of Defense (DOD) guidance, permit Israel (along with Egypt, Jordan, Morocco,
Tunisia, Yemen, Greece, Turkey, Portugal, and Pakistan) to use FMF to finance DCS contracts, in
which the purchaser (Israel) enters into a contract directly with a vendor.30
Qualitative Military Edge (QME)
U.S. military aid for Israel has been designed to maintain Israel’s “qualitative military edge” over
(pending U.S. government approval) to enter into FMF-financed Direct Commercial Sales (DCS) contracts99 with the Israeli government.100 Recurring language in annual appropriations bills,101 as implemented by Department of Defense guidance, permits Israel (along with Egypt, Jordan, Morocco, Tunisia, Yemen, Greece, Turkey, Portugal, and Pakistan) to use FMF to finance DCS contracts, in which the purchaser (Israel) enters into a contract directly with a vendor.102 According to the U.S. Department of Commerce, Israel's Ministry of Defense spends approximately one-third of its annual FMF allocation on Direct Commercial Contracts (DCC) procurements.103

Israel Moves to Expand its Industrial Base

Perhaps as a response to soaring international demand for certain armaments, as well as international pressure against Israel for its conduct of the war in Gaza, former Israeli defense leaders104 and the current coalition government have advocated for greater Israeli independence in the domestic manufacturing of certain weapons, most notably air-dropped munitions. In March 2024, as tensions between the Biden Administration and Israel heightened over Israel's conduct of the war in Gaza, Prime Minister Netanyahu's office issued a statement declaring, "We need to be much more independent in the ability to manufacture the war materiel that we need.... We will do this but we will do so very responsibly and prudently, so that Israel will be independent."105 Months later, Israeli media reported on the government's decision to manufacture heavy bombs (akin to the MK-84) and tank ammunition domestically.106 Called the Blue and White Independence Program, this initiative has begun producing materiel that Israel has previously imported. In January 2025, Israel's Ministry of Defense announced that it had contracted with Elbit Systems to produce heavy aerial munitions and a "national raw materials plant" that will produce materials previously sourced abroad.107

Qualitative Military Edge (QME) U.S. military aid for Israel has been designed to maintain Israel's "qualitative military edge" over
neighboring militaries. The rationale for QME is that Israel must rely on better equipment and neighboring militaries. The rationale for QME is that Israel must rely on better equipment and
training to compensate for being much smaller in land area and population than most of its training to compensate for being much smaller in land area and population than most of its
potential adversaries.potential adversaries.
The Origins of QME
The concept of QME (independent of its application to Israel) dates back to the Cold War. In assessing the The concept of QME (independent of its application to Israel) dates back to the Cold War. In assessing the
balance of power in Europe, U.S. war planners would often stress to lawmakers that, because Warsaw Pact balance of power in Europe, U.S. war planners would often stress to lawmakers that, because Warsaw Pact
countries had a numerical advantage over U.S. and allied forces stationed in Europe, the United States must countries had a numerical advantage over U.S. and allied forces stationed in Europe, the United States must
maintain a maintain a "qualitative edgequalitative edge" in defense systems. in defense systems.31108 The concept was subsequently applied to Israel in relation to its The concept was subsequently applied to Israel in relation to its
Arab adversaries. In 1981, then-U.S. Secretary of State Alexander Haig testified before Congress, saying, Arab adversaries. In 1981, then-U.S. Secretary of State Alexander Haig testified before Congress, saying, “A
"A central aspect of US policy since the October 1973 war has been to ensure that Israel maintains a qualitative central aspect of US policy since the October 1973 war has been to ensure that Israel maintains a qualitative
military edge.military edge.”32
"109 For decades, successive Administrations, in conjunction with Congress, have taken measures to For decades, successive Administrations, in conjunction with Congress, have taken measures to
maintain Israelmaintain Israel's QME in a number of ways. For example,s QME in a number of ways. For example,
U.S. arms sales policy has traditionally allowed Israel U.S. arms sales policy has traditionally allowed Israel first regional access to to
U.S. defense technology. For example, Israel acquired the F-15 in 1976, six years

27 Direct Commercial Contracts Division (DCC)/DCS allow a foreign entity to contract directly with a U.S.-based
company in order to obtain needed supplies or services (subject to U.S. Government review and approval). This process
takes the U.S. Government out of the “middleman” role that it plays in facilitating FMS transactions. See, CRS InFocus
CRS In Focus IF11441, Transfer of Defense Articles: Direct Commercial Sales (DCS), by Nathan J. Lucas and Michael
J. Vassalotti.
28 Defense Security Cooperation Agency, Guidelines for Foreign Military Financing of Direct Commercial Contracts,
March 2017.
29 See, for example, section headed “Foreign Military Financing Program” of the FY2023 Consolidated Appropriations
Act (P.L.117-328).
30 P.L. 101-167, the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, states that
“Only those countries for which assistance was justified for the Foreign Military Sales Financing Program in the fiscal
year 1989 congressional presentation for security assistance programs may utilize funds made available under this
heading for procurement of defense articles, defense services or design and construction services that are not sold by
the United States Government under the Arms Export Control Act.” The Defense Security Cooperation Agency’s
Security Assistance Manual further states that “DSCA (Directorate for Security Assistance (DSA) Direct Commercial
Contracts Division (DCC)) approves DCCs to be financed with FMF on a case-by-case basis.” See Chapter 9.7.3,
Security Assistance Management Manual (SAMM) as Defense Security Cooperation Agency Manual 5105.38-M,
DSCA Policy 12-20.
31 For example, see, Written Statement of General William O. Gribble, Jr., Hearings on Research, Development, Test,
and Evaluation Program for Fiscal Year 1973, Before Subcommittee No. 1 of Committee on Armed Services, House of
Representatives, Ninety-Second Congress, Second Session, February 2, 3, 7, 9, 22, 23, 24, March 6, 7, and 8, 1972.
32 Secretary of State Alexander Haig, Statement for the Record submitted in response to Question from Hon. Clarence
Long, House Appropriations Subcommittee on Foreign Operations Appropriations, April 28, 1981.
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U.S. Foreign Aid to Israel

U.S. defense technology. For example, Israel acquired the F-15 in 1976, six years before Saudi Arabia. It received before Saudi Arabia. It received the delivery of the F-16 fighter in 1980, three delivery of the F-16 fighter in 1980, three
years before Egypt.years before Egypt.33
110 In cases in which both Israel and an Arab state operate the same U.S. platform, In cases in which both Israel and an Arab state operate the same U.S. platform,
Israel has first received either Israel has first received either a more advanced version of the platform or the of the platform or the
ability to ability to customize the U.S. system. the U.S. system.34
111 In cases in which Israel objected to a major defense article sale to an Arab In cases in which Israel objected to a major defense article sale to an Arab
military (e.g., the 1981 sale of Airborne Early Warning and Control System military (e.g., the 1981 sale of Airborne Early Warning and Control System
aircraft or aircraft or “AWACS”"AWACS" to Saudi Arabia), Congress has, at times, advocated for and to Saudi Arabia), Congress has, at times, advocated for and
legislated legislated conditions on the usage and transfer of such weapons prior to or of such weapons prior to or
after a sale.after a sale.35
112 The United States has compensated Israel with The United States has compensated Israel with "offsetting" weapons packages or weapons packages or
military aid when selling other U.S. major defense articles to a Middle Eastern military aid when selling other U.S. major defense articles to a Middle Eastern
state (state (see textbox below).).
Over time, Congress codified informal QME-related practices in ways that encouraged a more Over time, Congress codified informal QME-related practices in ways that encouraged a more
deliberate interagency process for each major U.S. arms sale to Middle Eastern governments deliberate interagency process for each major U.S. arms sale to Middle Eastern governments
other than Israel.other than Israel.36113 In the In the 110th110th Congress, Representative Howard Berman sponsored legislation Congress, Representative Howard Berman sponsored legislation
((H.R. 5916, Section 201) to H.R. 5916, Section 201) to "carry out an empirical and qualitative assessment on an ongoing carry out an empirical and qualitative assessment on an ongoing
basis of the extent to which Israel possesses a qualitative military edge over military threats.basis of the extent to which Israel possesses a qualitative military edge over military threats.
" After becoming After becoming Chairmanchairman of the House Foreign Affairs Committee (HFAC), then-Chairman of the House Foreign Affairs Committee (HFAC), then-Chairman
Berman was able to incorporate this language into the Naval Vessel Transfer Act of 2008 (P.L. Berman was able to incorporate this language into the Naval Vessel Transfer Act of 2008 (P.L.
110-429). The relevant QME provisions of this law had three primary elements: (1) they defined 110-429). The relevant QME provisions of this law had three primary elements: (1) they defined
QME;QME;37114 (2) they required an assessment of Israel (2) they required an assessment of Israel's QME every four years; and (3) they amended s QME every four years; and (3) they amended
the Arms Export Control Act (AECA, 22 U.S.C. §2776) to require a determination, for any export the Arms Export Control Act (AECA, 22 U.S.C. §2776) to require a determination, for any export
of a U.S. defense article to any country in the Middle East other than Israel, that such a sale of a U.S. defense article to any country in the Middle East other than Israel, that such a sale
would not adversely affect Israelwould not adversely affect Israel's QME.

Preserving QME: Offsetting Weapons Packages for Israel

The following specific instances supplemented general U.S. efforts to strengthen Israel's QME:115

In 1992, after the United States announced a sale to Saudi Arabia of F-15 fighters, the George H. W. Bush
s QME.

33 In 1977, P.L. 95–92 provided that “In accordance with the historic special relationship between the United States and
Israel and previous agreements and continuing understandings, the Congress joins with the President in reaffirming that
a policy of restraint in United States arms transfers, including arms sales ceilings, shall not impair Israel’s deterrent
strength or undermine the military balance in the Middle East.”
34 “The Double Edged Sword of the Qualitative Military Edge,” Israel Policy Forum, April 11, 2016.
35 See Section 131, Certification Concerning AWACS sold to Saudi Arabia, P.L. 99-83, the International Security and
Development Cooperation Act of 1985.
36 Prior to 2008, during congressional review of possible U.S. arms sales to the Middle East, QME concerns only were
addressed on an ad hoc basis, usually through consultations between the military and committee staff. Some
congressional staff argued that assessments for specific arms sales tended to be overly subjective and asserted that
codifying the requirement would rationalize the process, make it more objective, and incorporate it as a regular
component of the U.S. arms sales review process to Middle Eastern governments. CRS conversation with Senate
Foreign Relations Committee staff member, September 24, 2020.
37 Section 201(d)(2) defines QME as “the ability to counter and defeat any credible conventional military threat from
any individual state or possible coalition of states or from non-state actors, while sustaining minimal damage and
casualties, through the use of superior military means, possessed in sufficient quantity, including weapons, command,
control, communication, intelligence, surveillance, and reconnaissance capabilities that in their technical characteristics
are superior in capability to those of such other individual or possible coalition of states or non-state actors.”
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Preserving QME: Offsetting Weapons Packages for Israel
The fol owing specific instances supplemented general U.S. efforts to strengthen Israel’s QME:38

In 1992, after the United States announced a sale to Saudi Arabia of F-15 fighters, the George H.W. Bush
Administration provided Israel with Apache and Blackhawk helicopters and pre-positioned U.S. defense Administration provided Israel with Apache and Blackhawk helicopters and pre-positioned U.S. defense
equipment in Israel for Israeli use with U.S. approval.equipment in Israel for Israeli use with U.S. approval.39

116 In 2007, after the George W. Bush Administration agreed to sell Saudi Arabia Joint Direct Attack Munitions In 2007, after the George W. Bush Administration agreed to sell Saudi Arabia Joint Direct Attack Munitions
(JDAMs), the Administration reportedly agreed to sell more advanced JDAMs to Israel.(JDAMs), the Administration reportedly agreed to sell more advanced JDAMs to Israel.40

117 In 2010, the Obama Administration agreed to sell an additional 20 F-35 aircraft to Israel In 2010, the Obama Administration agreed to sell an additional 20 F-35 aircraft to Israel in response tofollowing a sale a sale
to Saudi Arabia that included F-15s.to Saudi Arabia that included F-15s.41
118
In 2013, after the Obama Administration agreed to sell the In 2013, after the Obama Administration agreed to sell the UAEUnited Arab Emirates (UAE) advanced F-16 fighters, then-Secretary of advanced F-16 fighters, then-Secretary of
Defense Chuck Hagel announced that the United States would provide Israel with KC-135 refueling aircraft, Defense Chuck Hagel announced that the United States would provide Israel with KC-135 refueling aircraft,
anti-radiation missiles, advanced radar, and six V-22 Osprey tilt-rotor aircraft.anti-radiation missiles, advanced radar, and six V-22 Osprey tilt-rotor aircraft.42119 At the time, the U.S. At the time, the U.S.
proposal marked the first time that the United States had offered to sell tilt-rotor Ospreys to another proposal marked the first time that the United States had offered to sell tilt-rotor Ospreys to another
country. Israel would eventually cancel its planned purchase of the V-22country. Israel would eventually cancel its planned purchase of the V-22 due to, citing budgetary constraints. budgetary constraints.
Since the passage of the QME law and its amending of the AECA, the interagency process to Since the passage of the QME law and its amending of the AECA, the interagency process to
assess Israelassess Israel's QME has taken place behind closed doorss QME has taken place behind closed doors and with little fanfare. According to the with little fanfare. According to the
Defense Security Cooperation AgencyDefense Security Cooperation Agency's (DSCA) Security Assistance Manual, QME s (DSCA) Security Assistance Manual, QME
determinations can be classified.determinations can be classified.43120 After a QME determination has been made regarding a specific After a QME determination has been made regarding a specific
proposed sale, DSCA includes a line in the applicable congressional notification reading, proposed sale, DSCA includes a line in the applicable congressional notification reading, "The The
proposed sale will not alter the basic military balance in the region.proposed sale will not alter the basic military balance in the region.
" Lawmakers have amended or attempted to amend aspects of the 2008 law.Lawmakers have amended or attempted to amend aspects of the 2008 law. The U.S.-Israel The U.S.-Israel
Strategic Partnership Act (P.L. 113-296) amended Section 36 of the AECA to require that the Strategic Partnership Act (P.L. 113-296) amended Section 36 of the AECA to require that the
Administration explain, in cases of sales or exports of major U.S. defense equipment to other Administration explain, in cases of sales or exports of major U.S. defense equipment to other
Middle Eastern states, Middle Eastern states, “Israel’"Israel's capacity to address the improved capabilities provided by such s capacity to address the improved capabilities provided by such
sale or export.sale or export.
" U.S. Bilateral Military Aid to Israel
Since 1999, U.S. assistance to Israel has been outlined in 10-year government-to-government Since 1999, U.S. assistance to Israel has been outlined in 10-year government-to-government
Memoranda of Understanding (MOUs). MOUs are not legally binding agreements like treaties, Memoranda of Understanding (MOUs). MOUs are not legally binding agreements like treaties,
and do not require Senate ratification. Additionally, Congress may accept or change year-to-year and do not require Senate ratification. Additionally, Congress may accept or change year-to-year
assistance levels for Israel or provide supplemental appropriations. Nevertheless, past MOUs assistance levels for Israel or provide supplemental appropriations. Nevertheless, past MOUs
have significantly influenced U.S. aid to Israel; Congress has appropriated foreign aid to Israel have significantly influenced U.S. aid to Israel; Congress has appropriated foreign aid to Israel
largely according to the terms of the MOU in place at the timelargely according to the terms of the MOU in place at the time (with the exception of supplemental appropriations acts). . P.L. 116-283, the William M. P.L. 116-283, the William M.
(Mac) Thornberry National Defense Authorization Act (NDAA) for (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year 2021FY2021, contains , contains
Section 1273 of the United States Israel Security Assistance Authorization Act of 2020, which Section 1273 of the United States Israel Security Assistance Authorization Act of 2020, which
authorizes authorizes "not less thannot less than" $3.3 billion in annual FMF to Israel through 2028 per the terms of the current MOU (see below). Appropriators have matched or exceeded $3.3 billion in annual FMF to Israel through 2028 per the terms of the

38 See, e.g., U.S. State Department, Remarks by Andrew J. Shapiro, Assistant Secretary, Bureau of Political-Military
Affairs, November 4, 2011; “U.S.-Israel Strategic Cooperation: U.S. Provides Israel a Qualitative Military Advantage,”
Jewish Virtual Library.
39 See, Israel Ministry of Foreign Affairs, White House Statement on US Military Assistance to Israel, September 26,
1992, VOLUME 13-14: 1992-1994.
40 Dan Williams, “Israel to get ‘Smarter’ U.S.-made Bombs than Saudis,” Reuters, January 13, 2020.
41 Eli Lake, “In Gates Book, Details of Israel’s Hard Bargaining over Saudi Arms,” Daily Beast, January 10, 2014.
42 “U.S. Near $10 Billion Arms Deal with Israel, Saudi Arabia, UAE,” Reuters, April 19, 2013.
43 See https://www.samm.dsca.mil/chapter/chapter-5.
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current MOU (see below). Appropriators have matched that authorization level each year since its that authorization level each year since its
passage.passage.
Brief History of MOUs on U.S. Aid to Israel
The first 10-year MOU (FY1999-FY2008), agreed to under the Clinton Administration, was known as the The first 10-year MOU (FY1999-FY2008), agreed to under the Clinton Administration, was known as the "Glide Glide
Path AgreementPath Agreement" and represented a political commitment to provide Israel with at least $26.7 and represented a political commitment to provide Israel with at least $26.7 bil ionbillion in total in total
economic and military aid (of which $21.3 economic and military aid (of which $21.3 bil ionbillion was military aid) during its duration. was military aid) during its duration.44121 This MOU provided the This MOU provided the
template for the gradual phase-out of all economic assistance to Israel.template for the gradual phase-out of all economic assistance to Israel.
In 2007, the George W. Bush Administration and the Israeli government agreed to a second MOU consisting of a In 2007, the George W. Bush Administration and the Israeli government agreed to a second MOU consisting of a
$30 bil ion$30 billion military aid package for the 10-year period from FY2009 to FY2018. Under the terms of that military aid package for the 10-year period from FY2009 to FY2018. Under the terms of that
agreement, Israel was explicitly permitted to continue spending up to 26.3% of U.S. assistance on Israeli-agreement, Israel was explicitly permitted to continue spending up to 26.3% of U.S. assistance on Israeli-
manufactured equipment (known as Off-Shore Procurement or OSPmanufactured equipment (known as Off-Shore Procurement or OSPdiscussed below). The agreement stated ). The agreement stated
that that "Both sides acknowledge that these funding levels assume continuation of adequate levels for U.S. foreign Both sides acknowledge that these funding levels assume continuation of adequate levels for U.S. foreign
assistance overall, and are subject to the appropriation and availability of funds for these purposes.assistance overall, and are subject to the appropriation and availability of funds for these purposes.”45
"122 The Current 10-Year Security Assistance Memorandum of
Understanding (MOU)
At a signing ceremony at the State Department on On September 14, 2016, U.S. and Israeli September 14, 2016, U.S. and Israeli
government representatives signed another 10-year MOU on military aid covering FY2019 to government representatives signed another 10-year MOU on military aid covering FY2019 to
FY2028. Under the terms of this third MOU, the United States pledges, subject to congressional FY2028. Under the terms of this third MOU, the United States pledges, subject to congressional
appropriation, to provide $38 billion in military aid ($33 billion in FMF grants, plus $5 billion in appropriation, to provide $38 billion in military aid ($33 billion in FMF grants, plus $5 billion in
defense appropriations for missile defense programs) to Israel. According to the terms of the defense appropriations for missile defense programs) to Israel. According to the terms of the
MOU, MOU, "Both the United States and Israel jointly commit to respect the FMF levels specified in Both the United States and Israel jointly commit to respect the FMF levels specified in
this MOU, and not to seek changes to the FMF levels for the duration of this understanding.this MOU, and not to seek changes to the FMF levels for the duration of this understanding.”46
The terms of the FY2019-FY2028 MOU differ from previous agreements on issues such as,
"123

During the negotiations for the current MOU, Israeli officials had sought a higher U.S. commitment of as much as $45 billion.124 One of the MOU's negotiators, former U.S. Ambassador to Israel Daniel B. Shapiro, explained constraints that precluded such an increase:

At $3.1 billion (the closing level of FMF in the previous MOU), the Israeli share of the global FMF budget stood at roughly 40 percent. Two of the three next largest recipients of FMF were Egypt and Jordan, Israel's two Arab peace partners. The American side explained that there would be no way to increase FMF to Israel to certain levels without cutting deeply into the Egyptian and Jordanian programs, and likely eliminating altogether a number of smaller programs in other countries.125

The terms of the FY2019-FY2028 MOU differ from previous agreements on issues such as,

Phasing out Off-Shore Procurement (OSP).126.
47 OSP OSP iswas to decrease slowly until to decrease slowly until
FY2024, and then phase out more dramatically over the MOUFY2024, and then phase out more dramatically over the MOU's last five years, s last five years,
ending entirely in FY2028 (ending entirely in FY2028 (seesee Figure 2)4). The MOU calls on Israel to provide . The MOU calls on Israel to provide
the United States with the United States with "detailed programmatic information related to the use of detailed programmatic information related to the use of
all U.S. funding, including funds used for OSP.all U.S. funding, including funds used for OSP." In response to the planned In response to the planned
phase-out of OSP, some Israeli defense contractors phase-out of OSP, some Israeli defense contractors arestarted merging with U.S. merging with U.S.
companies or opening U.S. subsidiaries to continue their eligibility for defense companies or opening U.S. subsidiaries to continue their eligibility for defense
contracts financed through FMF (seecontracts financed through FMF (see, "U.S. Aid and Israel's Advanced
Military Technology
).48
").127 Missile Defense. The Administration The Administration pledgespledged to request $500 million in annual to request $500 million in annual
combined funding for missile defense programs with joint U.S.-Israeli

44 See, Joint Statement by President Clinton and Prime Minister Ehud Barak, July 19, 1999.
45 United States-Israel Memorandum of Understanding, Signed by then U.S. Under Secretary of State R. Nicholas
Burns and Israeli Ministry of Foreign Affairs Director General Aaron Abramovich, August 16, 2007.
46 Memorandum of Understanding between the United States and Israel, September 14, 2016.
47 Section 42(c) (22 U.S.C. §2791(c)) of the AECA prohibits using funds made available under this Act for
procurement outside the United States unless the President determines that such procurement does not have an adverse
effect on the U.S. economy or the industrial mobilization base. Executive Order 13637 designated this authority to the
Secretary of Defense and the issuance of an OSP waiver requires concurrence by the Departments of State and
Commerce. See, U.S. Department of Defense, Defense Security Cooperation Agency, Security Assistance Manual,
Chapter 9.
48 “Israeli UAV Firm agrees deal for Unnamed US Company,” Jane’s Defence Weekly, July 18, 2017.
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elements—such as Iron Dome, Arrow II and Arrow III, and David’s Sling.
Previous MOUs did not include missile defense funding, which has traditionally
been appropriated via separate interactions between successive Administrations
and Congresses. While the MOU commits both the United States and Israel to a
$500 million annual U.S. missile defense contribution, it also stipulates that
under exceptional circumstances (e.g., major armed conflict involving Israel),
both sides may agree on U.S. support above the $500 million annual cap). In
FY2022, Congress appropriated $1 billion in additional missile defense funding
for Israel (see, Table 4).
Figure 2. Phasing Out Off-Shore Procurement (OSP) Under the MOU

Source: CRS graphics.
Figure 3. U.S. Foreign Military Financing to Israel over Decades

Source: Created by CRS.
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Foreign Military Financing (FMF) and Arms Sales
Israel is the largest recipient of FMF. Annual FMF grants to Israel represent approximately 16%
of the overall Israeli defense budget.49 Israel’combined funding for missile defense programs with joint U.S.-Israeli elements—such as Iron Dome, Arrow II and Arrow III, and David's Sling. Previous MOUs did not include missile defense funding, which has traditionally been appropriated via separate interactions between successive Administrations and Congresses. While the MOU commits both the United States and Israel to a $500 million annual U.S. missile defense contribution, it also stipulates that under exceptional circumstances (e.g., major armed conflict involving Israel), both sides may agree on U.S. support above the $500 million annual cap).128 Considerations for the Next MOU

The current MOU is in effect through September 30, 2028. U.S. and Israeli officials will probably soon begin the formal process for negotiating the next assistance agreement. Israeli lawmakers and various experts have begun publishing position papers on the future of U.S. military assistance to Israel. Some call for maintaining or increasing aid, while others call for gradually phasing out assistance and, instead, pursuing a model of cooperative programming.129 During both the Biden and Trump Administrations, Prime Minister Benjamin Netanyahu has stated that Israel needs to "wean ourselves off of American security aid."130

With both sides having already agreed to tens of billions worth of U.S. arms sales since October 7, 2023, and with Israel's ability under U.S. law to use cash flow financing (see below) to stretch FMF payments on those contracts over years, a new MOU may be necessary to finance existing payment schedules on equipment already purchased. If the two sides are unable to reach an arrangement, and Congress does not appropriate FMF to Israel, the Israeli government would either have to pay for existing contracts with national funds, arrange other sources of external financing, or terminate ongoing contracts, at which point the United States and Israel may both be liable for certain contract termination costs.

As both sides prepare for MOU negotiations, projected Israeli defense budgets and U.S. foreign assistance budgets may factor into the aid levels in the next MOU. Israel has signaled that it may raise its own defense spending significantly in the coming years. An Israeli government commission recently recommended adding another $30 billion to military spending over the next decade.131 As Congress considers recent Administration reviews of U.S. foreign assistance, some experts have noted that reductions in U.S. assistance globally could have an indirect impact on Israel even if U.S. aid to Israel continues. For example, former U.S. Ambassador to Israel Daniel Shapiro has said that if other countries are receiving U.S. aid, "Israel is not so exposed," as the recipient of a majority of FMF.132

Figure 4. Phasing Out Off-Shore Procurement (OSP) Under the MOU

Source: CRS graphics.

Figure 5. U.S. Foreign Military Financing to Israel over Decades

Source: CRS graphics.

Foreign Military Financing (FMF) and Arms Sales The Foreign Military Financing appropriations account is the primary legislative funding vehicle through which Israel receives security assistance. Historically, Israel has been the largest recipient of FMF. Annual FMF grants to Israel represent approximately 14% of the overall Israeli defense budget.133 In the decades-long history of U.S. military aid to Israel, current levels of U.S. military aid represent a lower percentage of overall Israeli defense spending than in previous eras due to the growth of Israel's economy and national budget.134 Israel'
s defense expenditure as a percentage of its Gross s defense expenditure as a percentage of its Gross
Domestic Product (Domestic Product (5.178.8% in % in 20212024) is one of the highest in the world.) is one of the highest in the world.50
Cash Flow Financing
Section 23 of the AECA (22 U.S.C. §2763) authorizes the President to finance the “procurement
135

Like other global recipients of major U.S. defense equipment, the state of Israel procures U.S. arms through the Foreign Military Sales program (recipient procures item from the U.S. government) and Direct Commercial Sales (DCS) licenses (U.S. firms sell defense articles directly to international partners). From 1950 to 2022, the United States implemented more than $53.4 billion inFMS for Israel, making it the second largest U.S. defense customer by value worldwide (after Saudi Arabia).136 In April 2025, the Bureau of Political-Military Affairs (POL-MIL) at the State Department (the bureau responsible for policy direction of U.S. arms sales) reported that "as of April 2025, the United States has 751 active Foreign Military Sales (FMS) cases with Israel that are valued at $39.2 billion.... From FY2018 through FY2022, the U.S. has also authorized the permanent export of over $12.2 billion in defense articles to Israel via the Direct Commercial Sales (DCS) process."137

Figure 6. FMF as a Percentage of Israel's Defense Budget

Source: Jane's Defence Budget (April 2025).

Notes: This table does not include annual missile defense appropriations. Jane's Defence uses Israeli Ministry of Finance figures and other sources to estimate annual budget projections. Jane's figures are in constant 2025 USD billions.

Cash Flow Financing Section 23 of the AECA (22 U.S.C. §2763) authorizes the President to finance the "procurement
of defense articles, defense services, and design and construction services by friendly foreign of defense articles, defense services, and design and construction services by friendly foreign
countries and international organizations, on such terms and conditions as he may determine countries and international organizations, on such terms and conditions as he may determine
consistent with the requirements of this section.consistent with the requirements of this section." Successive Administrations have used this Successive Administrations have used this
authority to permit Israel to utilize FMF funds to finance multiyear purchases in advance authority to permit Israel to utilize FMF funds to finance multiyear purchases in advance
appropriations, rather than having to pay the full amount of such purchases up front (appropriations, rather than having to pay the full amount of such purchases up front (see text box
below
). Known as ). Known as "cash flow financing,cash flow financing," this benefit enables Israel to negotiate major arms this benefit enables Israel to negotiate major arms
purchases with U.S. defense suppliers with payments scheduled over a longer time horizon.purchases with U.S. defense suppliers with payments scheduled over a longer time horizon.51
138 Early History of Cash Flow Financing to Israel
The United States initially began authorizing installment-style sales to Israel to help it rebuild its military capabilities The United States initially began authorizing installment-style sales to Israel to help it rebuild its military capabilities
after the 1973 war with Egypt and Syria. Congress appropriated $2.2 after the 1973 war with Egypt and Syria. Congress appropriated $2.2 bil ionbillion for Israel in P.L. 93-199, the for Israel in P.L. 93-199, the
Emergency Security Assistance Act of 1973. Section 3 of that act stated that Emergency Security Assistance Act of 1973. Section 3 of that act stated that "Foreign military sales credits [loans Foreign military sales credits [loans
or grants] extended to Israel out of such funds shall be provided on such terms and conditions as the President or grants] extended to Israel out of such funds shall be provided on such terms and conditions as the President
may determine and without regard to the provisions of the Foreign Military Sales Act as amended.may determine and without regard to the provisions of the Foreign Military Sales Act as amended." At the time, At the time,
the Foreign Military Sales Act of 1968 (amended in 1971 and the precursor to the Arms Export Control Act of the Foreign Military Sales Act of 1968 (amended in 1971 and the precursor to the Arms Export Control Act of
1976), capped the annual amount of foreign military sales credit that could be extended to a recipient at no more 1976), capped the annual amount of foreign military sales credit that could be extended to a recipient at no more
than $250 than $250 mil ionmillion per year. Under the authorities contained in P.L. 93-199, President per year. Under the authorities contained in P.L. 93-199, President Richard Nixon, in two separate Nixon, in two separate
determinations (April and July 1974), allocated the $2.2 determinations (April and July 1974), allocated the $2.2 bil ionbillion to Israel as $1.5 to Israel as $1.5 bil ionbillion in grant military aid, the in grant military aid, the
largest U.S. grant aid package ever for Israel at the time. The remaining $700 largest U.S. grant aid package ever for Israel at the time. The remaining $700 mil ionmillion was designated as a military was designated as a military
loan. According to the loan. According to the New York Times, the Ford Administration reached a new arms sales agreement with Israel a the Ford Administration reached a new arms sales agreement with Israel a
year and a year-and-a-half later, providing thathalf later, providing that, “ "the cost of the new military equipment would be met through the large the cost of the new military equipment would be met through the large
amount of aid approved by the just-completed session of Congress as well as the aid that amount of aid approved by the just-completed session of Congress as well as the aid that wil will be approved by be approved by
future Congresses.future Congresses.”52
"139 Cash flow financing and its derivatives also have allowed Israel to use U.S. government-approved Cash flow financing and its derivatives also have allowed Israel to use U.S. government-approved
sources of external financing to support the procurement of major U.S. defense systems, such as sources of external financing to support the procurement of major U.S. defense systems, such as
combat aircraft. Beginning with its purchase of F-16D aircraft from Lockheed Martin over 20 combat aircraft. Beginning with its purchase of F-16D aircraft from Lockheed Martin over 20
years ago and continuing presently with ongoing procurement of the F-35, the United States has years ago and continuing presently with ongoing procurement of the F-35, the United States has
utilized what is known as the utilized what is known as the "Deferred Payments Program.Deferred Payments Program.”53"140 This program allows Israel to This program allows Israel to

49 The Israeli Ministry of Defense provides funding figures for its domestic defense budget but excludes some
procurement spending and spending on civil defense. The estimate referenced above is based on figures published by
Jane’s, “Israel Defence Budget,” June 20, 2022. Jane’s removes FMF from its Israeli defense budget calculations to
reflect how much Israel independently spends on defense.
50 In 2021, five other nations spent more on defense as a percentage of GDP: Saudi Arabia, Oman, Algeria, Kuwait and
Azerbaijan. See Stockholm International Peace Research Institute (SIPRI), Military expenditure by country as
percentage of gross domestic product, 2021, SIPRI Military Expenditure Database.
51 Cash flow financing is defined in Section 25(d) of the AECA and Section 503(a)(3) of the Foreign Assistance Act of
1961, as amended.
52 See, “U.S. Decides to Sell Some Arms to Israel That It Blocked in the Past,” New York Times, October 12, 1976.
53 Under this arrangement, Lockheed Martin sells Citibank a legal claim on its defense contract with Israel. The U.S.
Defense Department then repays Citibank using the available FMF allocation for Israel. The Israeli government uses its
own national funds to pay interest on the Citibank loans. One organization in support of continued U.S. support for
Israel has advocated for Congress to authorize the use of FMF to cover Israeli interest payments on weapons deals to
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defer payments owed under its Letter of Offer and Acceptance (LOA) for F-35 aircraft and use defer payments owed under its Letter of Offer and Acceptance (LOA) for F-35 aircraft and use
future-year FMF appropriations to make payments pursuant to a pre-determined payment future-year FMF appropriations to make payments pursuant to a pre-determined payment
schedule. Upon deferral of a given payment by Israel, a private bank (in the case of the F-35, a schedule. Upon deferral of a given payment by Israel, a private bank (in the case of the F-35, a
small consortium led by Citibank) pays Lockheed Martin in full and Lockheed Martin assigns its small consortium led by Citibank) pays Lockheed Martin in full and Lockheed Martin assigns its
right to be paid by the U.S. Government to the bank.54 In 2021, Israel’s “security cabinet”
(formally known as the Ministerial Committee on Defense) approved plans to allocate over $9
billion in future FMF appropriations to finance the purchases of various U.S. weapons systems,
such as the Sikorsky CH-53K heavy lift helicopter and additional F-35 aircraft (see below). In
2021, various news reports indicated that the Israeli government was pursuing a delay of the
payments coming due under the Deferred Payments Program to assist in financing these near-
term foreign military sales acquisitions.55
right to be paid by the U.S. Government to the bank.141 In Foreign Military Sales cases in which Israel and the United States seek to execute LOAs In Foreign Military Sales cases in which Israel and the United States seek to execute LOAs
beyond the scope of the current MOU (either beyond FY2028 or above the $33 billion pledged), beyond the scope of the current MOU (either beyond FY2028 or above the $33 billion pledged),
the U.S. government has established a the U.S. government has established a "Special Billing ArrangementSpecial Billing Arrangement” or SBA" (SBA) with Israel. The with Israel. The
purpose of SBAs, according to DSCA, is to purpose of SBAs, according to DSCA, is to "improve cash management for eligible FMS improve cash management for eligible FMS
partners.partners.”56"142 Under an SBA, Israel may use national cash reserves for funding requirements Under an SBA, Israel may use national cash reserves for funding requirements
associated with an FMS case (e.g., funds to cover termination liability) that exceeds the amount associated with an FMS case (e.g., funds to cover termination liability) that exceeds the amount
of funds listed in or duration of the current MOU.57
Early Transfer and Interest Bearing Account
Since FY1991 (P.L. 101-513), Congress has mandated that Israel receive its FMF aid in a lump
sum during the first month of the fiscal year.58 P.L.117-328, the Consolidated Appropriations Act,
2023 (hereinafter referred to as “the FY2023 Consolidated Appropriations Act”) states, “That
of the funds appropriated under this heading, not less than $3,300,000,000 shall be available for
grants only for Israel which shall be disbursed within 30 days of enactment of this Act.” Once
disbursed, Israel’s military aid is transferred to an interest bearing account with the U.S. Federal
Reserve Bank.59 Israel has used interest collected on its military aid to pay down, among other

creditors. See, Jonathan Ruhe, Charles B. Perkins, and Ari Cicurel, “Israel’s Acceleration of U.S. Weapons
Procurement: Analysis and Recommendations,” The Jewish Institute for National Security of America (JINSA),
February 2021. However, according to DSCA, it is unclear whether FMF is legally available for that purpose.
54 CRS Correspondence with DSCA, January 2022.
55 Avi Bar-Eli, “Analysis | 'Okay, but Never Again': How Israel Air Force Sealed $9 Billion U.S. Arms Deal,”
Ha’aretz, February 9, 2021 and “Israel’s Military Skirts Budget Restrictions for $9 Billion Air Force Upgrade,” Al
Monitor
, February 10, 2021.
56 See Chapter 9.10.2, Security Assistance Management Manual (SAMM) as Defense Security Cooperation Agency
Manual 5105.38-M, DSCA Policy 12-20.
57 According to DSCA, “Since requirements and procedures are unique to each country, they are normally established
in an agreement between the customer country, DSCA, and the appropriate banking institutions in the U.S. and the
purchaser’s country.” See, Defense Security Cooperation University, Security Cooperation Management, Chapter 12,
Edition 41, May 2021.
58 On at least one occasion when government operations were funded by a continuing resolution, Congress has included
provisions in the resolution preventing the early transfer of FMF to Israel until the final appropriations bill for that
fiscal year was passed. See Section 109 of P.L. 113-46, the Continuing Appropriations Act, 2014.
59 According to DSCA, “Some countries may establish an account with the federal reserve bank (FRB), New York, for
their FMS [Foreign Military Sales] deposits. An agreement between the FMS purchaser’s defense organization, the
purchaser’s central bank, FRB New York and DSCA identifies the terms, conditions, and mechanics of the account’s
operation. Countries receiving FMFP funds must maintain their interest bearing account in the FRB.” See, Defense
Institute of Security Assistance Management (DISAM), “The Management of Security Cooperation (Green Book),”
34th Edition, April 2015.
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U.S. Foreign Aid to Israel

things, its bilateral debt (nonguaranteed) to U.S. government agencies, which, according to the
U.S. Department of the Treasury, stood at $7.9 million as of September 2021.60of funds listed in or duration of the current MOU.143 Table 3. Selected Notified U.S. Foreign Military Sales to Israel

Amount/Description

Cong. Notice

Primary Contractor(s)

Estimated Cost

KC-46A aerial refueling aircraft

2020

Boeing Corporation

$2.4 billion

JP-8 aviation fuel, diesel fuel, and unleaded gasoline

2020

N/A

$3 billion

18 CH-53K Heavy Lift Helicopters (with support equipment)

2021

Lockheed Martin (parent company of Sikorsky) and General Electric Company

$3.4 billion

*120mm M830A1 High Explosive Anti-Tank Multi-Purpose with Tracer (MPAT) tank cartridges

2023

U.S. Army inventory

$106.5 million

*M107 155mm projectiles

2023

U.S. Army inventory

$147.5 million

50 new F-15IA multi-role fighter aircraft and modification kits for 25 F-15I multi-role fighter aircraft

2024

Boeing Corporation

$18.82 billion

30 AIM-120C-8 Advanced Medium Range Air-to-Air Missiles (AMRAAM) and 1 AMRAAM guidance section

2024

RTX Corporation

$102.5 million

32,739 120mm tank cartridges

2024

General Dynamics Ordnance and Tactical Systems and Northrop Grumman Defense Systems

$774.1 million

50,000 M933A1 120mm High Explosive Mortar Cartridges

2024

General Dynamics Ordnance and Tactical Systems Inc.

$61.1 million

M1148A1P2 Family of Medium Tactical Vehicles (FMTV)

2024

Oshkosh Corporation

$583.1 million

Heavy Duty Tank Trailers (HDTT)

2024

Leonardo DRS

$164.6 million

Munitions, Guidance Kits, Fuzes, and Munitions Support

2025

Boeing Corporation and others

$6.75 billion

AGM-114 Hellfire Missiles

2025

Lockheed Martin

$660 million

*Caterpillar D9 Bulldozers

2025

Caterpillar

$295 million

*Munitions, Guidance Kits, and Munitions Support

2025

Boeing Corporation and others

$675.7 million

*Munitions and Munitions Support

2025

General Dynamics and others

$2.04 billion

Eitan Powerpack Engines

2025

Rolls-Royce Solutions America, Inc

$180 million

Sources: Defense Security Cooperation Agency, Stockholm International Peace Research Institute Arms Transfer Database, IHS Jane's.

Notes: All figures are approximate. ***Notified under emergency authority under Section 36(b) of the Arms Export Control Act.

Early Transfer and Interest-Bearing Account Since FY1991 (P.L. 101-513), Congress has mandated that Israel receive its FMF aid in a lump sum during the first month of the fiscal year (not including supplemental appropriations).144 P.L.118-47, the FY2024 Further Consolidated Appropriations Act states that, "of the funds appropriated by this Act under the heading 'Foreign Military Financing Program,' not less than $3,300,000,000 shall be available for grants only for Israel which shall be disbursed within 30 days of enactment of this Act." Once disbursed, Israel's military aid is transferred to an interest-bearing account with the U.S. Federal Reserve Bank.145 In the past, Israel used interest collected on its military aid to pay down, among other things, its bilateral debt (nonguaranteed) to U.S. government agencies. As of September 2024, Israel no longer maintained any outstanding sovereign debt to the United States government.146
Israel cannot use Israel cannot use
accrued interest for defense procurement inside Israel.accrued interest for defense procurement inside Israel.
Shorter Congressional Review Period
of Arms Sales Per provisions in the AECA, Israel, along with North Atlantic Treaty Organization (NATO) Per provisions in the AECA, Israel, along with North Atlantic Treaty Organization (NATO)
member states, Japan, Australia, South Korea, and New Zealand (commonly referred to as member states, Japan, Australia, South Korea, and New Zealand (commonly referred to as
NATO+5) have shorter congressional review periods (15 days instead of 30) and higher dollar NATO+5) have shorter congressional review periods (15 days instead of 30) and higher dollar
notification thresholds than other countries for both government-to-government and notification thresholds than other countries for both government-to-government and
commercially licensed arms sales.61
F-35 Joint Strike Fighter
Israel was the first declared international operator of the F-35 Joint Strike Fighter.62 It has
purchased 50 F-35s in three separate contracts using FMF grants. As of January 2023, Israel had
received 36 of 50 jets, which it has divided into three squadrons (the 116th ‘Lions of the South,’
the 140th ‘Golden Eagles,’ and the 117th Training Squadron) based at Nevatim Air Base in
southern Israel.63 From there and without any aerial refueling, Israel’s F-35s could strike targets
in Syria, Iraq, Lebanon, Jordan, and most of Egypt, Turkey, and Saudi Arabia.64 One open source
has suggested that Israel may have extended the range of its F-35s in order to strike targets inside
Iran without first requiring mid-air refueling.65
To date, according to media accounts, Israel has used its F-35s in several military operations,
including:
 Israel reportedly has used its F-35 aircraft to conduct aerial strikes inside Syria.66

60 Foreign Credit Reporting System (FCRS), Amounts Due the U.S. Government, United States Department of the
Treasury, Office of Global Economics and Debt.
61 See CRS Report RL31675, Arms Sales: Congressional Review Process, by Paul K. Kerr.
62 In September 2008, DSCA notified Congress of a possible Foreign Military Sale of up to 75 F-35s to Israel in a deal
with a possible total value of $15.2 billion. See, Defense Security Cooperation Agency, Transmittal No. 08-83, Israel -
F-35 Joint Strike Fighter Aircraft, September 29, 2008.
63 Yaakov Lappin, “Israeli Air Force Favouring Additional F-35s,” Jane’s Defence Weekly, September 10, 2020.
64 Gareth Jennings, “Israel Declares F-35 to Be Operational,” Jane’s Defence Weekly, December 6, 2017.
65 Thomas Newdick, “Israel has Extended the Range of its F-35,” The War Zone, The Drive.com, June 9, 2022.
66 “F-35 Stealth Fighter Sees First Combat, in Israeli Operation,” BBC News, May 22, 2018 and “Israel - Air Force,”
Jane’s World Air Forces, July 5, 2019.
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 In March 2021, Israeli F-35 aircraft reportedly intercepted two Iranian drones
(carrying a cargo of pistols
presumably intended for Palestinian
Figure 4commercially licensed arms sales. The prior notice threshold values for transfers to these recipients are $25 million for the sale, enhancement, or upgrading of major defense equipment; $100 million for the sale, enhancement, or upgrading of defense articles and defense services; and $300 million for the sale, enhancement, or upgrading of design and construction services.147 F-35 Joint Strike Fighter

Israel was the first declared international operator of the F-35 Joint Strike Fighter.148 It has purchased 50 F-35s in three separate contracts using FMF grants and agreed to a Letter of Offer and Acceptance (LOA) with the U.S. government for 25 more planes (for a total of $3 billion) pending finalized contracts with Lockheed Martin. Deliveries of this additional tranche of jet fighters are not expected to be completed until 2035. As of January 2025, Israel had received 39 of 50 jets on order,149 which it has divided into three squadrons (the 116th 'Lions of the South,' the 140th 'Golden Eagles,' and the 117th Training Squadron) based at Nevatim Air Base in southern Israel.150

In 2018, Israeli defense officials claimed that Israel was the first country to operate the F-35 in combat.151 To date, only the United States and Israel have ever used the aircraft in aerial strikes. Since 2018, Israeli pilots have reportedly flown the F-35 across multiple theaters (both permissive and contested in terms of air defenses), such as Syria, Iran, and Yemen.152 Some reports suggest that Israel used its F-35s to strike deep within Iranian territory in October 2024, destroying Iran's Russian-supplied S-300 anti-aircraft systems.153 When asked how the Israel Air Force's versions of the F-35 have performed, U.S. Air Force Lieutenant General Michael J. Schmidt stated in a 2023 hearing before the House Armed Services Committee that it had been "absolutely outstanding" and "their full mission capable rates are high."154

Figure 7. U.S. and Israeli F-35s Fly in Formation

Joint Exercise Enduring Lightning III (October 2020)

Source: U.S. Air Force.

The Department of Defense'
. U.S. and Israeli F-35s Fly in

militants) while the drones were
Formation
outside of Israeli airspace.67
Joint Exercise Enduring Lightning III (October 2020)
The Department of Defense’s F-35 program is s F-35 program is
an international cooperative program in which an international cooperative program in which
Israel (and Singapore) are considered Israel (and Singapore) are considered
"security cooperation participantssecurity cooperation participants" outside of outside of
the F-35 cooperative development the F-35 cooperative development
partnership.partnership.68155 Israel is not eligible to assign Israel is not eligible to assign
staff to the F-35 Joint Program Office in staff to the F-35 Joint Program Office in
Virginia and does not receive full F-35 Virginia and does not receive full F-35
technical briefings.technical briefings.69156 The U.S. government The U.S. government
and Lockheed Martin retain exclusive access and Lockheed Martin retain exclusive access

to the F-35to the F-35's software code, which Israel is s software code, which Israel is
not permitted to alter.not permitted to alter.
Source: U.S. Air Force.

Despite these limitations, IsraelDespite these limitations, Israel's involvement in the F-35 program is extensive, with Israeli s involvement in the F-35 program is extensive, with Israeli
companies making F-35 wing sets (IAI) and helmets (Elbit Systems). companies making F-35 wing sets (IAI) and helmets (Elbit Systems). IsraelUnder a 2020 agreement with Lockheed Martin, the defense contractor committed to re-investing 35%157 of the F-35 contract's value into Israeli industry through offset and counter-trade activity; as of 2020, Lockheed had invested over $4 billion in Israel's defense sector.158 Israel also has received significant received significant
development access to the F-35 and the ability to customize its planes with Israeli-made C4 development access to the F-35 and the ability to customize its planes with Israeli-made C4
(command, control, communications, computers) systems, under the condition that the software (command, control, communications, computers) systems, under the condition that the software
coding be done by the United States. In 2018, the Navy awarded Lockheed Martin a $148 million coding be done by the United States. In 2018, the Navy awarded Lockheed Martin a $148 million
contract for contract for "the procurement of Israel-unique weapons certification, modification kits, and the procurement of Israel-unique weapons certification, modification kits, and
electronic warfare analysis.electronic warfare analysis.”70"159 Software upgrades (called Block 3F+) added to the main computer Software upgrades (called Block 3F+) added to the main computer
of Israelof Israel's F-35s reportedly facilitate the s F-35s reportedly facilitate the "use of Israeli-designed electronic equipment and use of Israeli-designed electronic equipment and
weaponry,weaponry," thereby permitting Israel to thereby permitting Israel to "employ its own external jamming pod and also allow employ its own external jamming pod and also allow
internal carriage of indigenous air-to-air missiles and guided munitions.internal carriage of indigenous air-to-air missiles and guided munitions.”71"160 In December 2021, the In December 2021, the
Defense Department awarded a $49 million contract to Lockheed Martin to support work on Defense Department awarded a $49 million contract to Lockheed Martin to support work on "an an
F-35 variant F-35 variant ‘tailored’'tailored' for an undisclosed FMS customer, for an undisclosed FMS customer," probably Israel.161

Figure 8. F-35 Helmet Mounted Display

Made by Israeli Manufacturer Elbit Systems

Source: Elbit Systems Ltd.

Notes: The F-35 Helmet Mounted Display is a joint venture between Elbit Systems and Rockwell Collins.

F-15IA

Israel has flown variants of the F-15 since the late 1970's, and due to their ranges and payload capacities, these variants (F-15I) have been considered the top fighters in Israel's F-15 fleet. However, for over two decades, Israel had not acquired any new F-15 fighters. Internal Israeli budgetary and political disagreements had delayed a formal Israeli request to move ahead with an acquisition of 25 F-15IAs (or F-15EXs) until 2023.162 In a long-range Israeli air strike scenario (against a country like Iran), the stealthy F-35 is designed to target an enemy's air defenses, while the F-15IA is to use its heavy-weapons payload against various hardened targets.

As mentioned above, in August 2024, the Biden Administration formally notified Congress of potential Foreign Military Sales to Israel for up to 50 new F-15IA fighter aircraft and F-15 upgrades for $18.82 billion.163 In November 2024, Israel and Boeing agreed to contract terms for the purchase of 25 F-15IAs for $5.2 billion. Initial delivery is set to take place in 2031, with 4-6 aircraft to be supplied annually thereafter.164 Reportedly, the new F-15IA will be equipped with advanced Israeli electronic warfare equipment and data links.165

KC-46A Pegasus
probably Israel.72

67 Yaakov Lappin and Jeremy Binnie, “IDF details Iranian UAV incursions,” Jane’s Defence Weekly, March 9, 2022.
68 See CRS Report RL30563, F-35 Joint Strike Fighter (JSF) Program, by Jeremiah Gertler.
69 “Israel,” Jane’s World Air Forces, September 1, 2020.
70 U.S. Department of Defense, U.S. Navy, Contracts For February 2, 2018.
71 Gareth Jennings, “Israel Stands-Up Second F-35 Unit,” Jane’s Defence Weekly, January 17, 2020.
72 Gareth Jennings, “Lockheed Martin to Design and Develop F-35 Variant ‘Tailored’ for Foreign Customer,” Jane’s
Defence Weekly
, December 29, 2021.
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U.S. Foreign Aid to Israel

Figure 5. F-35 Helmet Mounted Display
Made by Israeli Manufacturer Elbit Systems
KC-46A Pegasus
To extend the range of its aerial attack To extend the range of its aerial attack
capability and enhance personnel mobility, capability and enhance personnel mobility,
Israel has pursued procurement of BoeingIsrael has pursued procurement of Boeing’s
's KC-46A KC-46A “Pegasus”"Pegasus" multirole tanker. The multirole tanker. The
Pegasus can refuel all types of U.S. and allied Pegasus can refuel all types of U.S. and allied
military aircraft and can carry passengers, fuel, military aircraft and can carry passengers, fuel,
and equipment. The and equipment. The IsraelIsraeli Air Force originally Air Force originally
procured its current fleet of tankers (converted procured its current fleet of tankers (converted

Boeing 707s) in the 1970s. According to one
Source: Elbit Systems Ltd.
account, the KC-46A can “refuel other aircraft
Note: The F-35 Helmet Mounted Display is a joint
while being simultaneously refueled by
venture between Elbit Systems and Rockwell Col ins.
another KC-46, a capability the (Boeing 707
refueling plane) doesn't have. This theoretically stretches its range to infinity.”73
Boeing 707s) in the 1970s. According to one account, "With the ability to fly for 36 hours, the KC-46A has a high endurance for long missions and comes equipped with anti-electronic jamming equipment to make the large target safer from attack."166 According to several Members of Congress, "Israeli KC-46As would not only benefit Israel's refueling operations but, since they are interoperable with U.S. aircraft, would also expand U.S. capabilities in the Middle East—without the United States having to pay to station and maintain tankers in the region."167

Figure 9. The KC-46A Pegasus

Source: U.S. Air Force.

In March 2020, DSCA notified Congress of a planned sale to Israel of eight KC-46A Boeing In March 2020, DSCA notified Congress of a planned sale to Israel of eight KC-46A Boeing
“Pegasus”"Pegasus" aircraft for an estimated $2.4 billion. aircraft for an estimated $2.4 billion.74168 Israel is the second foreign country approved by Israel is the second foreign country approved by
the United States to receive the KC-46A, after Japan.the United States to receive the KC-46A, after Japan.
In February 2021, Israel signed an LOA to buy two KC-46As and, in January 2022, it reached a In February 2021, Israel signed an LOA to buy two KC-46As and, in January 2022, it reached a
second LOA for two additional tankers. As actual contract negotiations ensued between the Israeli
government and Boeing, some lawmakers sought expedited delivery of the tankers to Israel. In
January 2022, five House Members wrote a letter to President Biden seeking an accelerated
timetable for the delivery of the KC-46A.75 In April 2022, lawmakers again wrote to President
Biden seeking expedited delivery.76
In late August 2022, Boeing and Israel signed a contract for four KC-46A plus associated
maintenance, logistics, and training for $927 million. Then-Defense Minister Benny Gantz
thanked the Department of Defense for approving the deal, which, according to him, included
“the expedited implementation of U.S. FMF.”77 Israel may use the KC-46A to refuel its F-35
fighters, a key capability in projecting force toward Iran and elsewhere.78

73 “Eye on Iran, Israel to buy four Boeing air force tankers for $927 million,” Reuters, September 1, 2022.
74 Defense Security Cooperation Agency, Israel—KC-46A Aerial Refueling Aircraft, Transmittal No 20-12, March 3,
2020.
75 Andrew Clevenger, “Biden Should Expedite Delivery of KC-46s to Israel, GOP Lawmakers Say,” CQ News, January
7, 2022.
76 See, https://www.cotton.senate.gov/imo/media/doc/israel_letter.pdf and https://www.politico.com/f/?id=00000180-
1e8b-d00d-a3c6-bfbbcef20000.
77 Seth Frantzman, “Israel, Boeing agree to $927M deal for four KC-46A tankers,” Defense News, September 1, 2022.
78 Seth Frantzman, “Israel inks $3 Billion deal for KC-46 Tankers, CH-53 helos,” Defense News, January 4, 2022.
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Delivery of the Pegasus tankers may occur at
Figure 6. The KC-46A Pegasus
some point in 2026, though Israel’s
government has sought to expedite this
timetable.79
CH-53K Heavy Lift Helicopters
Since 1969, Israel’second LOA for two additional tankers. In late August 2022, Boeing and Israel signed a contract for four KC-46As, plus associated maintenance, logistics, and training, for $927 million. Delivery of the Pegasus tankers may occur at some point in either 2025 or 2026; Israel's government has sought to expedite this timetable.169

Since Israel may use the KC-46A to refuel its F-35 fighters, a key capability in projecting force toward Iran and elsewhere,170 some lawmakers have sought to expedite deliveries of the refueling aircraft along with associated specialized training for Israeli pilots. Section 1256 of P.L.118-31, the National Defense Authorization Act for FY2024, directs the Secretary of the Air Force to, among other things: provide U.S. resources to train members of the Israel Air Force on the operation of KC-46A, authorize Israeli participation in an Air Force Military Personnel Exchange Program, and provide an estimated date of delivery to Israel of KC-46A aircraft. When this provision was first presented in the Senate, the Biden Administration opposed it, noting that the "Air Force is actively planning KC-46 training and exchange programs with the Government of Israel and will execute such programs on a timeline, and in a manner, that is mutually agreeable to the U.S. and Israeli Air Forces."171

To prepare Israeli defense infrastructure for the KC-46A, U.S. companies have been expanding Israeli runways at various air bases.172 These U.S. firms have been paving runways and taxiways and building hangars of sufficient size for the new tankers.173

Other Pillars of U.S.-Israeli Military Cooperation

For decades, the U.S. and Israeli governments have engaged in a number of cooperative military activities, such as joint exercises, working groups, and coordinated operations. Below are some examples of these pillars of defense cooperation.

Joint Bilateral Exercises: For 20 years, the U.S. and Israeli militaries have conducted exercises as part of the "Juniper" series. The most recent one, Juniper Oak, was held in January 2023.174 The Israeli Navy and the U.S. 5th Fleet also conduct naval exercises, codenamed "Intrinsic Defender." Section 1213 of P.L.118-52, the National Defense Authorization Act for FY2025, requires, among other things, that the United States Central Command (CENTCOM) invite Israel to conduct joint military exercises with U.S. forces, including in subterranean warfare.

Joint Working Groups: Since the early 1980s, U.S. and Israeli officials have participated in the Joint Political Military Group (JPMG), a bilateral forum to discuss and plan military cooperation.175 Other groups include: the U.S.-Israel Defense Policy Advisory Group (DPAG),176 the U.S.-Israel Defense Acquisition Advisory Group (DAAG), the U.S.-Israel Defense Industrial Base Working Group, and the U.S.-Israel Operations-Technology Working Group (OTWG). While these bilateral groups have been created by the executive branch, Congress has at times legislated changes to U.S.-Israeli working groups.177 Section 1214 of P.L.118-52, the National Defense Authorization Act for FY2025, requires the Secretary of Defense to establish a partnership between the Defense Innovation Unit of the Department of Defense and appropriate counterparts of Israel to, among other things, "enhance market opportunities for United States-based and Israeli-based defense technology companies."

U.S. Military Presence in Israel: With the exception of wartime emergencies, such as late 2023 and much of 2024 when the United States deployed significant forces in and around Israel,178 the United States does not regularly maintain a large presence of U.S. troops inside Israel. According to a media report, the United States does have access to Mashabim Israeli Air Base, where several dozen U.S. Air Force personnel are apparently located.179 Another report suggests that, as of 2021, the United States and Israel maintain a Combined Joint Operations Center at Hatzor Air Base.180

One of the most significant gestures of U.S. support for Israel's missile defense architecture has been the deployment of the AN/TPY-2 X-Band radar system (built by Raytheon) to Israel in late 2008. The X-Band system remains U.S.-owned and is operated by U.S. troops and defense contractors—the first indefinite U.S. military presence to be established on Israeli soil.181

CH-53K Heavy Lift Helicopters Since 1969, Israel'
s Air Force has used its s Air Force has used its
Sikorsky Yasur helicopters (CH-53D) to Sikorsky Yasur helicopters (CH-53D) to
transport personnel and equipment. In transport personnel and equipment. In
upgrading its fleet of transport helicopters, upgrading its fleet of transport helicopters,
Israel chose the Sikorsky Israel chose the Sikorsky "King StallionKing Stallion" CH- CH-
53K Heavy Lift helicopters over competing 53K Heavy Lift helicopters over competing

systems. In 2021, DSCA notified Congress of systems. In 2021, DSCA notified Congress of
Source: U.S. Air Force
a planned sale to Israel of up to 18 CH-53Ks a planned sale to Israel of up to 18 CH-53Ks
at an estimated cost of $3.4 billion.at an estimated cost of $3.4 billion.80
182 In late 2021, Israel signed an LOA with the United States to purchase 12 CH-53K Heavy Lift In late 2021, Israel signed an LOA with the United States to purchase 12 CH-53K Heavy Lift
helicopters for $2 billion (with an option to procure an additional six helicopters).helicopters for $2 billion (with an option to procure an additional six helicopters).81183 In February In February
2022, multiple sources reported that Lockheed Martin2022, multiple sources reported that Lockheed Martin's Sikorsky Aircraft Corporation had agreed s Sikorsky Aircraft Corporation had agreed
to a contract with Israel to produce the first four CH-53Ks for $372 million.to a contract with Israel to produce the first four CH-53Ks for $372 million.
Delivery is anticipated sometime between 2025 and 2026. According to one report, Israel’s air
force may face a “capability gap” if it retires most of its current Yasur helicopters before it can
take delivery of the new CH-53Ks, a process which may take time given Israel’s need to
customize the platform.82
Figure 7. The In 2023, Sikorsky was awarded a Department of Defense contract worth $2.7 billion to deliver 35 CH-53Ks, including eight for Israel.184 Initial delivery is anticipated sometime between 2025 and 2026.

Figure 10. CH-53K Heavy Lift
CH-53K Heavy Lift

Helicopter for Israel
Excess Defense Articles
(an artist(an artist's rendering) rendering)

Source: Lockheed Martin.

Excess Defense Articles
The Excess Defense Articles (EDA) program The Excess Defense Articles (EDA) program
provides an avenue for the United States to provides an avenue for the United States to
advance foreign policy objectives—assisting advance foreign policy objectives—assisting
friendly and allied nations—while also friendly and allied nations—while also
reducing its inventory of outdated or excess reducing its inventory of outdated or excess
equipment. This program, managed by equipment. This program, managed by
DSCA, enables the United States to provide DSCA, enables the United States to provide
friendly countries with supplies in excess of friendly countries with supplies in excess of
U.S. requirements, at either reduced rates or U.S. requirements, at either reduced rates or
no charge.83


Source: Lockheed Martin


79 Joseph Trevithick, “Israel's Request to Speed Delivery Of KC-46 Tankers Critical for Striking Iran Denied - The War
Zone,” The Drive, December 14, 2021.
80 Defense Security Cooperation Agency, Israel – CH-53K Heavy Lift Helicopters with Support, Transmittal No
21-52, July 30, 2021.
81 U.S. Naval Air Systems Command, “Israel to purchase CH-53K King Stallion,” NAVAIR News, January 4, 2022.
82 Glenn Sands, “Israel wants its CH-53Ks as soon as possible,” Verticalmag.com, July 7, 2022.
83 To access DSCA’s Excess Defense Articles database, see http://www.dsca.mil/programs/eda.
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no charge.185 As a designated As a designated "major non-NATO ally,major non-NATO ally," Israel is eligible to receive EDA under Section 516(a) of Israel is eligible to receive EDA under Section 516(a) of
the Foreign Assistance Act (FAA) and Section 23(a) of the AECA. According to DSCA, from the Foreign Assistance Act (FAA) and Section 23(a) of the AECA. According to DSCA, from
2010 to 20202013 to 2023, Israel received at least $, Israel received at least $385296 million in EDA deliveries (current value). million in EDA deliveries (current value).84
Origins of Israel’s Status as a “Major Non-NATO Ally”
186 The State Department notes that since 1992, the United States has provided a total of $6.6 billion worth of EDA to Israel.187

Origins of Israel's Status as a "Major Non-NATO Ally"

On November 4, 1986, President Reagan signed into law P.L. 99-661, the National Defense Authorization Act for On November 4, 1986, President Reagan signed into law P.L. 99-661, the National Defense Authorization Act for
FY1987. In Section 1105 of that act, Congress called for greater defense cooperation between the United States FY1987. In Section 1105 of that act, Congress called for greater defense cooperation between the United States
and countries that the Secretary of Defense could designate as a and countries that the Secretary of Defense could designate as a "major non-NATO allymajor non-NATO ally" (MNNA). Such (MNNA). Such
cooperation could entail U.S. funding for joint research and development and production of U.S. defense cooperation could entail U.S. funding for joint research and development and production of U.S. defense
equipment. In February 1987, the United States granted Israel MNNA status along with several other countries equipment. In February 1987, the United States granted Israel MNNA status along with several other countries
(Egypt, Japan, South Korea, and Australia). According to press reports at the time, in the absence of a U.S.-Israeli (Egypt, Japan, South Korea, and Australia). According to press reports at the time, in the absence of a U.S.-Israeli
mutual defense agreement, supporters of Israel had been advocating for Israel to receive mutual defense agreement, supporters of Israel had been advocating for Israel to receive "equal treatmentequal treatment" with with
regard to certain special military benefits (such as the ability to bid on U.S. defense contracts) that NATO allies regard to certain special military benefits (such as the ability to bid on U.S. defense contracts) that NATO allies
received from the United States.received from the United States.85188 Nearly a decade later, Congress passed additional legislation that further Nearly a decade later, Congress passed additional legislation that further
solidified Israelsolidified Israel's MNNA status. In 1996, Section 147 of P.L. 104-164 amended the Foreign Assistance Act of 1961 s MNNA status. In 1996, Section 147 of P.L. 104-164 amended the Foreign Assistance Act of 1961
by requiring the President to notify Congress 30 days before designating a country as a MNNA. According to the by requiring the President to notify Congress 30 days before designating a country as a MNNA. According to the
act, Israel, along with several other countries, act, Israel, along with several other countries, "shall be deemed to have been so designated by the President as of shall be deemed to have been so designated by the President as of
the effective date of this section, and the President is not required to notify the Congress of such designation of the effective date of this section, and the President is not required to notify the Congress of such designation of
those countries.”86
Table 2. Selected Notified U.S. Foreign Military Sales to Israel
Amount/Description
Cong. Notice
Primary Contractor(s)
Estimated Cost
13 76mm naval guns and technical
2017
DRS North America
$440 mil ion
support
240 Namer armored personal carrier
power packs and associated equipment
2019
MTU America
$238 mil ion
KC-46A aerial refueling aircraft
2020
Boeing Corporation
$2.4 bil ion
JP-8 aviation fuel, diesel fuel, and
unleaded gasoline
2020
N/A
$3 bil ion
Lockheed Martin (parent
18 CH-53K Heavy Lift Helicopters (with
2021
company of Sikorsky) and
$3.4 bil ion
support equipment)
General Electric Company
Sources: Defense Security Cooperation Agency, Stockholm International Peace Research Institute Arms
Transfer Database, IHS Jane’s.
Note: All figures are approximate.
Defense Budget Appropriations for U.S.-Israeli
Missile Defense Programs
Congress and successive Administrations have demonstrated strong support for jointthose countries."189 Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs For years, Iran and Iran-supported non-state actors across the Middle East have developed short and long-range capabilities designed to threaten Israel. In response, Congress and successive Administrations have supported joint U.S.-Israeli missile defense projects. As previously mentioned, (see, "The Current 10-Year Security Assistance Memorandum of Understanding (MOU)") the current MOU on assistance commits the president to requesting $500 million annually from Congress in missile defense funding for joint U.S.-Israeli systems. Congress has provided these funds for Israeli and U.S.-Israeli U.S.-Israeli
missile defense projects designed to thwart a diverse range of threats. Due to Iranian weapons
proliferation and the rapid spread of drone technology throughout the Middle East, Israel faces a
bevy of state and non-state actors in possession of sophisticated precision-guided missiles,

84 Excess Defense Articles Database Tool, Defense Security Cooperation Agency.
85 See, “Israel seeks to obtain the kind of Financial Aid that NATO Members get from U.S. Government,” Wall Street
Journal
, February 3, 1987.
86 See, 22 U.S.C. §2321j.
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unmanned aerial vehicles (UAVs), and guided and unguided rockets. While the near-term threats
of short-range missiles and rockets launched by non-state actors such as Hamas and Hezbollah
remain, the development of Iranian proxies in Syria, Iraq, and Yemen, as well as Iran’s own
advancement in precision guided munitions, have opened new fronts for Iran-backed groups to
potentially threaten Israel’s security.
In 2022 and 2023, Iran’s ongoing transfer of UAVs to Russia (and possibly short-range ballistic
missiles) appear to have further heightened U.S. and Israeli concern over Iran’s capabilities.
While Iranian UAVs suffer a high rate of interception, their low cost and ease of replacement
have allowed Russia to use them in its invasion of Ukraine to swarm targets and overwhelm air
defenses.87 Ukraine has repeatedly sought Israeli cooperation in bolstering its air defenses against
both Russian attacks and Iranian-made drones (see below).
Congress provides regular U.S. funding for Israeli and U.S.-Israeli missile defense programs in
defense authorization and appropriations bills. Israel and the United States each contribute
financially to several weapons systems and engage in co-development, co-production, and/or
technology sharing in connection with them. Since 2001, Israel and the United States have
conducted a joint biennial ballistic missile defense exercise, called Juniper Cobra,88 to work on
integrating their weapons, radars, and other systems.89
The following section provides background on Israel’missile defense programs in defense authorization and appropriations bills and, at times (2021, 2024), has appropriated additional funding during wartime. Israel and the United States each contribute financially to several weapons systems and engage in co-development, co-production, and/or technology sharing in connection with them.

How do the United States and Israel Spend Missile Defense Funds?

In any given fiscal year, after Congress appropriates joint U.S.-Israeli missile defense funding, the Department of Defense's Missile Defense Agency (MDA) and the Israel Missile Defense Organization (IMDO) jointly cooperate to execute the $500 million annual program. This program has two broad components: (1) research, development, testing, and evaluation (or RDT&E) and (2) procurement/co-production. U.S. contributions toward RDT&E are matched by Israel on an annual basis, while the MOU stipulated that 50% or greater of annual procurement/co-production funds must be spent in the United States. According to the MDA, since the annual $500 million program is divided roughly into $300 million for RDT&E and $200 million for procurement/co-production, at least $100 million a year is then spent on missile defense funding inside the United States by either U.S. firms or American-based subsidiaries of Israeli defense contractors.190

Figure 11. Locations of U.S.-Israeli Missile Defense Co-Production

IDDS (Iron Dome), DSWS (David's Sling), and AWS (Arrow)

Source: Provided to CRS by the U.S. Missile Defense Agency, March 2025.

Notes: Approved for public release; distribution unlimited. No U.S.-Israeli missile defense co-production in Alaska or Hawaii (not shown).

The following section provides background on Israel'
s four-layered active defense network: Iron s four-layered active defense network: Iron
Dome (short range), DavidDome (short range), David's Sling (low to mid-range), Arrow II (upper-atmospheric), and Arrow s Sling (low to mid-range), Arrow II (upper-atmospheric), and Arrow
III (exo-atmospheric).III (exo-atmospheric).191 In addition to these existing systems, In addition to these existing systems, according to open source reports, Israel, the U.S. Missile Defense Israel, the U.S. Missile Defense
Agency, and various private defense contractors are working on next generation defense systems, Agency, and various private defense contractors are working on next generation defense systems,
such as Arrow such as Arrow IV90IV192 and various ground and air-based laser systems, including Iron Beam ( and various ground and air-based laser systems, including Iron Beam (see
below
).).91
Iron Dome
193 Beyond these interception systems, Israel also has extensive civil defense procedures and advanced warning infrastructure to move civilians into shelters in the event of a missile/rocket/drone attack. Iron Dome Iron Dome is a short-range anti-rocket, anti-mortar, Iron Dome is a short-range anti-rocket, anti-mortar, anti-drone, anti-missile, and anti-artillery system (intercept range of and anti-artillery system (intercept range of
2.5 to 43 miles) developed by Israel2.5 to 43 miles) developed by Israel's Rafael Advanced Defense Systems and originally produced s Rafael Advanced Defense Systems and originally produced
in Israel. Iron Domein Israel. Iron Dome's targeting system and radar are designed to fire its Tamir interceptors only s targeting system and radar are designed to fire its Tamir interceptors only
at incoming projectiles that pose threats to the area being protected (generally, strategically at incoming projectiles that pose threats to the area being protected (generally, strategically
important sites, including population centers); it is not configured to fire on rockets outside of that important sites, including population centers); it is not configured to fire on rockets outside of that
area. Israel can move Iron Dome batteries as threats change (there is a sea-variant of Iron Dome
as well). Israel has at least ten Iron Dome batteries deployed throughout the country, each
designed to defend a 60-square-mile populated area.92 Israel’s Defense Ministry claims that Iron
Dome successfully intercepted 97% of all targets it engaged during a summer 2022 confrontation
in which Palestine Islamic Jihad (PIJ) fired rockets into Israel.93

87 See, CRS Insight IN12042, Iran's Transfer of Weaponry to Russia for Use in Ukraine, November 4, 2022.
88 The IDF postponed the 2022 Juniper Cobra exercise. See, Anna Ahronheim, “IDF Delays Juniper Cobra Drill amid
Russian, Iranian Tensions,” Jerusalem Post, February 8, 2022.
89 The United States and Israel also jointly conduct a military exercise known as Juniper Falcon, designed to enhance
interoperability between both nations’ militaries.
90 Udi Shaham, “Israel, US developing Arrow-4,” Jerusalem Post, February 19, 2021.
91 Anna Ahronheim, “Lockheed Martin, Rafael Join Forces to Build 'Ground-Based' Laser Weapon,” Jerusalem Post,
July 28, 2021.
92 Each battery has three to four launchers loaded with up to 20 Tamir interceptors per launcher for a total of 60-80
interceptors per battery. Every Iron Dome Battery also comes equipped with vehicles to reload launchers.
93 “Israel says Iron Dome shoots down 97% of Gaza rockets,” Reuters, August 7, 2022.
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Co-production and U.S. Funding
To date, the United States has provided nearly $3area. The Tamir interceptor's warhead detonates the target warhead in the air. Iron Dome consists of a wheeled chassis launcher (each with 20 interceptors), a radar unit, and battle management and control center. While Iron Dome's software can make split-second targeting decisions, human operators oversee the system, reload the launchers, and provide force protection for the unit. Israel can move Iron Dome batteries as threats change (there is a sea-variant of Iron Dome known as C-Dome).

Figure 12. How Iron Dome works

Source: Rafael Advanced Systems.

To date, the United States has provided over $6
billion
to Israel for Iron Dome batteries, to Israel for Iron Dome batteries,
interceptors, co-production costs, and general maintenance (see interceptors, co-production costs, and general maintenance (see Table 45). Because Iron Dome ). Because Iron Dome
was developed by Israel alone, Israel initially retained proprietary technology rights to it. The was developed by Israel alone, Israel initially retained proprietary technology rights to it. The
United States and Israel have had a decades-United States and Israel have had a decades-
long partnership in the development and co-long partnership in the development and co-
production of other missile defense systems production of other missile defense systems
Figure 8. Iron Dome Launcher
(such as the Arrow). As the United States (such as the Arrow). As the United States
began financially supporting Israelbegan financially supporting Israel’s
's development of Iron Dome in FY2011, U.S. development of Iron Dome in FY2011, U.S.
interest in ultimately becoming a partner in its interest in ultimately becoming a partner in its
co-production grew. Congress then called for co-production grew. Congress then called for
Iron Dome technology sharing and co-Iron Dome technology sharing and co-
production with the United States.production with the United States.94
194 In March 2014, the U.S. and Israeli In March 2014, the U.S. and Israeli
governments signed a co-production governments signed a co-production
agreement to enable the manufacture of agreement to enable the manufacture of
components of the Iron Dome system in the components of the Iron Dome system in the

United States, while also providing the U.S. United States, while also providing the U.S.
Source: Raytheon.
Missile Defense Agency (MDA) with full access to what had been proprietary Iron Dome Missile Defense Agency (MDA) with full access to what had been proprietary Iron Dome
technology.95 U.S.-based Raytheon is Rafael’s U.S. partner in the co-production of Iron Dome.96
technology.195 Subsequent amendments to the original co-production agreement define the percentage of "U.S. workshare" in the co-production process. According to 2023 testimony by the then Director of the U.S. Missile Defense Agency, the U.S. workshare percentage for Iron Dome stood at 30%.196 U.S.-based RTX (formerly known as Raytheon) is Rafael's U.S. partner in the co-production of Iron Dome.197 In 2020, the two companies formed a joint venture incorporated in the United States known as In 2020, the two companies formed a joint venture incorporated in the United States known as
"Raytheon Rafael Area Protection Systems (R2S).Raytheon Rafael Area Protection Systems (R2S)." Tamir interceptors (the U.S. version is called Tamir interceptors (the U.S. version is called
SkyHunter) are manufactured at SkyHunter) are manufactured at Raytheon’s missilesan RTX missile and defense facility in Tucson, Arizona and and defense facility in Tucson, Arizona and
elsewhere and then assembled in Israel. Israel also maintains the ability to manufacture Tamir elsewhere and then assembled in Israel. Israel also maintains the ability to manufacture Tamir
interceptors within Israel.

94 In conference report language accompanying P.L. 112-239, the National Defense Authorization Act for FY2013,
conferees agreed: “The Department of Defense needs to obtain appropriate data rights to Iron Dome technology to
ensure us the ability to use that data for U.S. defense purposes and to explore potential co-production opportunities.
The conferees support this policy and expect the Department to keep the congressional defense committees informed of
developments and progress on this issue.”
95 The co-production agreement is formally titled, “Agreement Between the Department of Defense of the United
States of America and the Ministry of Defense of the State of Israel Concerning Iron Dome Defense System
Procurement.”
96 The FY2014 Emergency Supplemental Appropriations Resolution, P.L. 113-145, exempted $225 million in Iron
Dome funding—requested by Israel on an expedited basis during the summer 2014 Israel-Gaza conflict—from the co-
production requirements agreed upon in March 2014.
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U.S. Army Procurement of Iron Dome
U.S. efforts to acquire Iron Dome have come in the context of lawmakers’ expressing concern over a lack of
capability to protect American service members deployed overseas from possible sophisticated cruise missile
attacks.97 Congress directed the Army to take interim steps to procure additional systems.98 Section 112 of P.L.
115-232, The John S. McCain National Defense Authorization Act for Fiscal Year 2019, required the Secretary of
Defense to certify whether there is a need for the U.S. Army to deploy an interim missile defense capability (fixed-
site, cruise missile defense capability) and, if so, to deploy additional batteries. In response to this mandate, the
U.S. Army procured two Iron Dome batteries from Rafael at a cost of $373 mil ion. The Army justified the
purchase by referencing Iron Dome’s high interception rate as wel as the Tamir interceptor’s low cost relative to
existing U.S. missile defense systems.99 After testing various systems, in September 2021, the U.S, Army selected
Dynetics’ Enduring Shield system, rather than Iron Dome, to fulfil its “Indirect Fire Protection Capability”.100 The
Iron Dome batteries are now housed at Joint Base Lewis-McChord in Washington. Section 111 of P.L. 117-81, the
National Defense Authorization Act for Fiscal Year 2022, amends the 2019 NDAA to eliminate a mandate for two
additional U.S. Army purchases of Iron Dome. Currently, the U.S. Marine Corps is evaluating Iron Dome to fulfil
its “Medium Range Intercept Capability (MRIC).” According to one report, the Marine Corps has successful y
tested a MRIC prototype that “removes the Rafael-made Iron Dome launcher from its heavy base, mounts it on
the back of a trailer to fire Tamir missiles, and integrates it with other service capabilities.”101
Ukraine’s Request for Israeli Missile Defense Systems
Since the start of Russia’s war against Ukraine in February 2022, the Ukrainian government has
sought foreign assistance, including from Israel, to repel Russian aggression. Ukraine has made a
number of requests for various Israeli-made weapons systems, such as anti-tank Spike guided
missiles and Iron Dome. In March 2022, Ukrainian President Volodymyr Zelensky addressed the
Israeli Knesset by video, stating, “Everyone in Israel knows that your missile defense is the
best.... And you can definitely help us protect our lives, the lives of Ukrainians, the lives of
Ukrainian Jews.”102
Despite repeated Ukrainian entreaties, Israel has generally refrained from providing military
support to Ukraine, citing a range of considerations (e.g., concern over losing its air superiority in
Russian-supported Syria, concern over Russian capture of Israeli technology, concern over its
lack of spare capacity of defense systems, and concern over Russian restrictions on Jewish
emigration).103 Israel has accepted tens of thousands of Ukrainian refugees (Jewish and non-
Jewish) into Israel and provided humanitarian aid (generators and medical equipment) and non-
lethal equipment (helmets, flak jackets) to the Ukrainian government. Israel also has pledged to
provide the Ukrainian government with up to $200 million in loan guarantees for healthcare and
civilian infrastructure. Israel also has operated a field hospital near the Ukrainian-Polish border.

97 Jen Judson, “Congress wants new plans from Army on its indirect fire protection suite development,” Defense News,
September 18, 2018.
98 In 2018, some Members of Congress advocated for the selection of Iron Dome to protect U.S. troops deployed
abroad against threats emanating from Russia and North Korea. See, “Bipartisan House Letter Requests Iron Dome Use
for US Army,” Jewish Telegraphic Agency, April 24, 2018.
99 “US Army Buys Israel’s Iron Dome for Tactical Missile Defense,” Jewish Policy Center, January 22, 2019.
100 Andrew Eversden, “Dynetics Beats Out Iron Dome for $237M Army Missile Defense Contract,” Breaking Defense,
September 27, 2021.
101 Ashley Roque, “Marines greenlight mobile Iron Dome launcher development, seek 2025 prototype fielding,”
Breaking Defense, January 5, 2023.
102 Volodymyr Zelenskyy, Address to the Knesset of Israel on the Russian Invasion of Ukraine, March 20, 2022, Kyiv,
Ukraine.
103 Patrick Kingsley and Ronen Bergman, “Russia Shrinks Forces in Syria, a Factor in Israeli Strategy There,” New
York Times
, October 19, 2022.
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Once Russia turned to Iran for UAV supplies, Israel offered to help Ukraine develop an early-
warning system for its civilians, and reportedly began sharing basic intelligence with Ukraine
aimed at helping its forces counter drone attacks.104 In November 2022, one Israeli news outlet
reported that Israel had begun supplying “strategic materials” to a NATO member for use in
Ukraine.105 In January 2023, Ukrainian Ambassador to Israel Yevhen Korniychuk said that Israel
was in the process of transferring missile and drone early-warning systems to Ukraine.106 Also in
January 2023, Prime Minister Benjamin Netanyahu, in an interview with CNN, remarked:
I have no desire to enter a new Russo-Israeli military confrontation. And neither would
anyone. Neither would you. But, at the same time, we've given Ukraine a lot of
humanitarian support. We've taken in Jewish and non-Jewish refugees in a very tiny
country, Israel, disproportionately. And we've also offered other kinds of aid. I'm looking
into other kinds of aid. But, realistically, Israel, in confronting Iran, is also confronting the
main partner of Russia.107
Analysis
If Israel were to export the entire Iron Dome system or certain system components to Ukraine,
there would be several technical, legal, and diplomatic considerations for the United States. For
example, because the Iron Dome is co-produced with the United States, Israel and the Department
of Defense would need to jointly approve of Israel’s transfer of the system. There have been no
official indications of whether the Biden Administration would grant such approval. When asked
whether the United States would work with Israel to send defensive systems to Ukraine, the
Defense Department has responded, “The United States believes that every nation that provides
equipment and systems to Ukraine should do it according to their own dictates. These are
sovereign decisions....”108
Other policy considerations include whether Israel has immediate spare interceptor capacity or
spare batteries to ship to Ukraine and, if so, whether the Israeli government would be willing to
send its own soldiers to operate or provide training on such systems in Ukraine. The United
States, which is providing Ukraine with Patriot missile defense systems, has facilitated the
transfer of Ukrainian soldiers to the United States for training on the Patriot. In addition, while
much international media and Ukrainian government appears to focus on Iron Dome due to its
prominent reputation, Israeli companies also manufacture other, lesser-known systems for export,
such as Rafael’s Spyder short and medium range mobile air defense system and IAI’s Barak 8
surface-to-air missile (SAM) system. According to one report:
Israeli sources told Breaking Defense that Ukraine has for months asked Israel to supply
its army with systems that will counter Russian missile attacks, and appearance of Iranian-
made drones have done nothing to limit the hunger for Israeli systems. The request was
mainly for air defense systems Iron Dome and Spyder, both made by Rafael, and the Israel

104 “Israel offers help with air-attack alerts, but Ukraine wants interceptors,” Reuters, October 19, 2022; “Israel giving
intel on Russia's Iranian drones to Ukraine – report,” Jerusalem Post, October 24, 2022.
105 Yossi Melman, “Under U.S. Pressure, Israel Funded ‘Strategic Materials’ for Ukraine,” Ha’aretz, November 17,
2022.
106 “Israel will transfer technologies related to smart missile and drone warning to Ukraine – ambassador,” Frontnews
(Ukraine), January 13, 2023.
107 CNN Transcripts, “CNN Exclusive: One-On-One With Israel's Netanyahu Amid Surging Violence; Netanyahu On
A Possible Peace Deal With The Palestinians; Netanyahu Dismisses Criticism Over Proposed Judicial Changes,” Aired
9- 10p ET, January 31, 2023.
108 U.S. Department of Defense, News Briefing, April 27, 2022.
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Aerospace Industries-produced Barak 8. For Iron Dome, a US approval is needed due to
American funding that helped develop the system. However, during the summer visit of
US President Joe Biden in Israel, Israel was asked to support Ukraine in more ways than it
has done until today, so an export issue is not expected. The Spyder and Barak 8 are free
for export, as the US has not funded either of them.109
Some U.S. lawmakers have been critical of the perceived lack of Israeli support for Ukraine. In
early 2023, Senator Lindsey Graham tweeted his displeasure over the new Israeli government’s
decision to speak less openly about Ukraine, stating “To stay quiet about Russia’s criminal
behavior will not age well.”110 Several months earlier, Senator Chris Murphy told CNN that
“Israel needs to get off the sidelines.”111
David’s Sling
In August 2008, Israel and the United States officially signed a “project agreement” to co-develop
the David’s Sling system.112 David’s Sling (aka Magic Wand) is a short/medium-range system
designed to counter long-range rockets and slower-flying cruise missiles fired at ranges from 25
to 186 miles, such as those possessed by Iran, Syria, and Hezbollah in Lebanon. David’s Sling is
designed to intercept missiles with ranges and trajectories for which Iron Dome and/or Arrow
interceptors are not optimally configured. It has been developed jointly by Rafael Advanced
Defense Systems and Raytheon.113 David’s Sling uses Raytheon’s Stunner missile for
interception, and each launcher can hold up to 16 missiles. In April 2017, Israel declared David’s
Sling operational and, according to one analysis, “two David’s Sling batteries are sufficient to
cover the whole of Israel.”114

109 Arie Egozi, “As Iranian munitions kill in Ukraine, pressure builds for Israel to reassess its Russian balancing act,”
Breaking Defense, October 18, 2022.
110 Twitter, @LindseyGrahamSC, January 2, 2023. See,
https://twitter.com/LindseyGrahamSC/status/1610043932980690944
111 Congressional Quarterly Newsmaker Transcripts, Sen. Chris Murphy Interviewed on CNN, October 19, 2022.
112 This joint agreement is a Research, Development, Test and Evaluation (RDT&E) Framework agreement between
the United States and Israel. The joint program to implement the agreement is known as the Short Range Ballistic
Missile Defense (SRBMD) David’s Sling Weapon System (DSWS) Project. The Department of Defense/U.S.-Israeli
Cooperative Program Office manages the SRBMD/DSWS program, which is equitably funded between the United
States and Israel.
113 See Raytheon Missile and Defense, David's Sling System and SkyCeptor Missile at
https://www.raytheonmissilesanddefense.com/capabilities/products/davidssling
114 “IDF officially declares David’s Sling Operational,” Jane’s Defence Weekly, April 3, 2017.
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Israel first used David’s Sling in July 2018.
Figure 9. David’s Sling Launches Stunner
At the time, Syrian regime forces were
Interceptor
attempting to retake parts of southern Syria as
part of the ongoing conflict there. During the
fighting, Asad loyalists fired two SS-21
Tochka or ‘Scarab’ tactical ballistic missiles
at rebel forces, but the missiles veered into
Israeli territory. David’s Sling fired two
Stunner interceptors, but the final impact
point of the Syrian missiles changed mid-
flight, and Israel ordered one of the
interceptors to self-destruct; the other most
likely landed in Syrian territory.115 Chinese
media claimed that Asad regime forces
recovered the Stunner interceptor intact and
handed it over to Russia; the Israeli
government did not comment on this

assertion.116
Source: Israel Ministry of Defense.
Since FY2006, the United States has
contributed over $2.4 billion to the development of David’s Sling (see Table 4). In June 2018,
the United States and Israel signed a co-production agreement for the joint manufacture of the
Stunner interceptor. Some interceptor components are built in Tucson, Arizona, by Raytheon.
The Arrow and Arrow II
Under a 1986 agreement allowing Israel to participate in the Strategic Defense Initiative (SDI),
the United States and Israel have co-developed different versions of the Arrow anti-ballistic
missile, and, since 1988, have engaged in joint development.117 The Arrow is designed to counter
short-range ballistic missiles. The United States has funded just under half of the annual costs of
the development of the Arrow Weapon System, with Israel supplying the remainder. The total
U.S. financial contribution (for all Arrow systems) has exceeded $4.5 billion (see Table 3). The
system became operational in 2000 in Israel and has been tested successfully.
The Arrow II program (officially referred to as the Arrow System Improvement Program or
ASIP), a joint effort of Boeing and IAI, is designed to defeat longer-range ballistic missiles. One
Arrow II battery is designed to protect large swaths of Israeli territory. In March 2017, media
sources reported the first known use of the Arrow II, saying Arrow II successfully intercepted a

115 See, “Israel, US Complete Successful Advanced David’s Sling Missile Tests,” Jerusalem Post, March 20, 2019, and
“David’s Sling has Dubious Debut against Syrian Missiles, Jane’s Defence Weekly, July 25, 2018.
116 Tyler Rogoway, “If an Israeli Stunner Missile Really Did Fall Into Russian Hands It Is a Huge Deal,” The Drive,
November 13, 2019.
117 Shortly after the start of the Strategic Defense Initiative (SDI) in 1985, the Reagan Administration sought allied
political support through various cooperative technology agreements on ballistic missile defense (BMD). A
memorandum of understanding was signed with Israel on May 6, 1986, to jointly develop an indigenous Israeli
capability to defend against ballistic missiles. Subsequently, a number of additional agreements were signed, including,
for example, an April 1989 Memorandum of Agreement (MOA) to develop an Israeli computer facility as part of the
Arrow BMD program, a June 1991 agreement to develop a second generation Arrow BMD capability, and a September
2008 agreement to develop a short-range BMD system to defend against very short-range missiles and rockets. Israeli
interest in BMD was strengthened by the missile war between Iran and Iraq in the later 1980s, and the experience of
being attacked by Scud missiles from Iraq during Operation Desert Storm in 1991.
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Syrian surface-to-air missile (SAM) that had been fired on an Israeli jet returning to Israel from
an operation inside Syria.118
In August 2020, nearly 20 years after the first Arrow system became operational, Israel
successfully tested the Arrow II system. According to one account of the test, Arrow II
“successfully intercepted a Sparrow simulated long-range, surface-to-surface missile, which
could one day be fired at Israel by Iran...”119
Table 3. U.S. Contributions to the Arrow Program (Arrow, Arrow II, and Arrow III)
current U.S. dollars in millions
Fiscal Year
Total
Fiscal Year
Total
Fiscal Year
Total
1990
52.000
2004
144.803
2018
392.300
1991
42.000
2005
155.290
2019
243.000
1992
54.400
2006
122.866
2020
214.000
1993
57.776
2007
117.494
2021
250.000
1994
56.424
2008
118.572
2022
235.000
1995
47.400
2009
104.342
2023
253.000
1996
59.352
2010
122.342


1997
35.000
2011
125.393


1998
98.874
2012
125.175


1999
46.924
2013
115.500


2000
81.650
2014
119.070


2001
95.214
2015
130.908


2002
131.700
2016
146.069


2003
135.749
2017
272.224






Total
4,501.811
Source: U.S. Missile Defense Agency.
High Altitude Missile Defense System (Arrow III)
Citing a potential nuclear threat from Iran, Israel has sought a missile interceptor that operates at
a higher altitude and greater range than the original Arrow systems. In October 2007, the United
States and Israel agreed to establish a committee to evaluate Israel’s proposed “Arrow III,” an
upper-tier system designed to intercept medium-range ballistic missiles outside the atmosphere.
The Arrow III is a more advanced version—in terms of speed, range and altitude—of the current
Arrow II interceptor. In 2008, Israel decided to begin development of the Arrow III and the
United States agreed to co-fund its development despite an initial proposal by Lockheed Martin
and the DOD urging Israel to purchase the Terminal High-Altitude Area Defense (THAAD)
missile defense system instead.120
The Arrow III, made (like the Arrow II) by IAI and Boeing, has been operational since January
2017. The United States and Israel signed an Arrow III co-production agreement in June 2019;

118 For more information, see U.S. Department of Defense, Missile Defense Agency, Arrow at
https://www.mda.mil/news/gallery_internationalcoop_arrow.html.
119 Anna Ahronheim, “Israel Successfully Carries out Arrow 2 Interception. Test Simulated Shooting Down of Long-
Range Missile, Including Possibly from Iran,” Jerusalem Post, August 14, 2020.
120 In March 2019, the United States deployed a THAAD missile battery to Israel for a month of training with Israeli
personnel.
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their co-production of Arrow III components is ongoing.121 A U.S.-based subsidiary of IAI, Stark
Aerospace Inc. based in Columbus, Mississippi, is producing canisters for the Arrow III system.
Since co-development began in 2008, Congress has appropriated $1.4 billion for Arrow III (see
Table 4). In January 2022, Israel successfully tested Arrow III with reported breakthroughs in the
system’s algorithmic detection of incoming projectiles and calculation of interception launch
trajectories.122
Export of the Arrow III to Germany
Russia’s 2022 invasion of Ukraine has prompted some NATO members to enhance their national
missile defense. In 2022, German officials expressed interest in purchasing Arrow III for an
estimated $2.2 to $3 billion with delivery of a system in 2025. Germany does not possess a
missile defense system capable of interception in the exo-atmosphere.
Reports suggest that, because Arrow III is jointly produced by the United States and Israel, the
Defense Department has granted Israel its preliminary approval to negotiate with the German
government over a possible export deal.123 Another unconfirmed report indicates that in exchange
for formal U.S. approval of an export license, the United States is demanding that half of all
Arrow III contract production for Germany take place in the United States.124 As of March 2023,
talks are ongoing.

121 In July 2010, the United States and Israel signed a bilateral agreement (The Upper-Tier Interceptor Project
Agreement) to extend their cooperation in developing and producing the Arrow III, including an equitable U.S.-Israeli
cost share.
122 Judah Ari Gross, “Israel Successfully Tests Arrow 3 Anti-Ballistic Missile System,” Times of Israel, January 18,
2022.
123 For example, see Anna Ahronheim, “Germany gets approval for Israel's Arrow 3 missile defense system,”
Jerusalem Post, April 5, 2022.
124 Anna Ahronheim, “US demands production of Arrow 3 for Germany take place in America,” Jerusalem Post,
November 9, 2022.
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Israel’s High Energy Laser (Iron Beam) Interception System
In 2014, Rafael Advanced Defense Systems announced that the company was developing a mobile, ground-based
high energy laser (HEL) interception system. After eight years of development, Israel publicly demonstrated the
capabilities of Iron Beam in 2022. Iron Beam first tracks an incoming rocket, artil ery, or mortar (RAM) or UAV,
then fires two electrically sourced high energy lasers at the target, destroying it at a range of up to 2.7 miles
away.125 If successful y tested and operational, Iron Beam could significantly enhance Israel’s national counter-RAM
and counter-drone defenses. Each use of the Iron Beam would cost between two to four dol ars, compared to
tens of thousands of dol ars to manufacture a conventional interceptor. 126 However, HEL interception systems
are not necessarily replacements for Israel’s current multi-layered defense system; they are complementary. It is
difficult for laser systems to operate in inclement weather and their range is typically shorter than existing kinetic
systems, like Iron Dome. In addition, if Israel faced a barrage of RAM or a swarm of drones, it would require a
number of HEL batteries to protect its homeland.127
In December 2022, Lockheed Martin and Rafael signed a teaming agreement to jointly develop and manufacture a
HEL system based on “the assets that have been developed independently by RAFAEL and the Ministry of
Defense's Directorate of Defense Research and Development (DDR&D) within the framework of the IRON
BEAM project.”128 As of March 2023, the U.S. government has no official role in this private company partnership.
During President Biden’s summer 2022 visit to Israel, multiple sources reported that the Israeli government
intended to seek U.S. assistance with Israel’s HEL program.129 Several weeks later, another report indicated that
while no government-to-government funding agreement had been reached during the visit, “it was expected [that]
the US government would pitch in to the systems’ development in some fashion later on.”130 As noted below, the
FY2023 James M. Inhofe National Defense Authorization Act expands the U.S.-Israel counter unmanned aerial
systems program to include “directed energy capabilities.”
Table 4. Defense Budget Appropriations for U.S.-Israeli Missile Defense:
FY2006-FY2023
current U.S. dollars in millions
Arrow III
(High
David’s Sling
Fiscal Year
Arrow II
Altitude)
(Short-Range)
Iron Dome
Total
FY2006
122.866

10.0

132.866
FY2007
117.494

20.4

137.894
FY2008
98.572
20.0
37.0

155.572
FY2009
74.342
30.0
72.895

177.237
FY2010
72.306
50.036
80.092

202.434
FY2011
66.427
58.966
84.722
205.000
415.115
FY2012
58.955
66.220
110.525
70.000a
305.700
FY2013 After
40.800
74.700
137.500
194.000
447.000
Sequestration

125 Gareth Jennings, “Israel to deploy protective ‘laser wall', likely Iron Beam,” Jane’s Defence Weekly, February 2,
2022.
126 “Israel says laser missile shield to cost just $2 per interception,” Reuters, June 1, 2022.
127 Yaakov Lappin, “Israeli PM announces ‘laser wall' air defence plan,” Jane’s Defence Weekly, February 2, 2022.
128 Lockheed Martin press release, “Lockheed Martin and Rafael Advanced Defense Systems to Collaborate on High-
Energy Laser System,” December 5, 2022.
129 For example, Walla and Jerusalem Post Staff, “Israel to ask Biden for laser defense funding,” Jerusalem Post, June
17, 2022.
130 Arie Egozi, “Israel to spend $150 million on laser defenses, after US hesitation,” Breaking Defense, August 3, 2022.
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Arrow III
(High
David’s Sling
Fiscal Year
Arrow II
Altitude)
(Short-Range)
Iron Dome
Total
FY2014
44.363
74.707
149.712
460.309
729.091
(includes
supp)
FY2015
56.201
74.707
137.934
350.972
619.814
FY2016
56.519
89.550
286.526
55.000
487.595
FY2017
67.331
204.893
266.511
62.000
600.735
FY2018
82.300
310.000
221.500
92.000
705.800
FY2019
163.000
80.000
187.000
70.000
500.000
FY2020
159.000
55.000
191.000
95.000
500.000
FY2021
173.000
77.000
177.000
73.000
500.000
FY2022
173.000
62.000
157.000
1,108.000b
1,500.000
FY2023
173.000
80.000
167.000
80.000
500.000
Total
1,799.476
1,407.779
2,494.317
2,915.281
8,616.853
Notes:
a. These funds were not appropriated by Congress but reprogrammed by the Obama Administration from
other Department of Defense accounts.
b. P.L.117-103, the FY2022 Consolidated Appropriations Act provided $108 mil ion in Iron Dome
appropriations from the Defense Department’s Procurement, Defense-Wide and Research, Development,
Test and Evaluation Defense-Wide accounts. Section 8142 of the Act also provided $1 bil ion in
supplemental aid for Iron Dome for fiscal years 2022-2024.
Emergency U.S. Stockpile in Israel
In the early 1980s, Israeli leaders sought to expand what they called their “strategic
collaboration” with the U.S. military by inviting the United States to stockpile arms and
equipment at Israeli bases for American use in wartime.131 Beginning in 1984, the United States
began to stockpile military equipment in Israel, but only “single-use” armaments that could not be
used by the Israel Defense Forces (IDF).132 In 1989, the George H.W. Bush Administration
altered the terms of the stockpile to provide Israel access to it in emergency situations.133 At the
time, the United States was attempting to sell Saudi Arabia M1A1 tanks, and U.S. officials were
seeking Israel’s acquiescence to the deal.
Section 514 of the FAA of 1961 (22 U.S.C. §2321h) allows U.S. defense articles stored in war
reserve stocks to be transferred to a foreign government through FMS or through grant military
assistance, such as FMF. Congress limits the value of assets transferred into War Reserves Stock
Allies (WRSA) stockpiles located in foreign countries in any fiscal year through authorizing
legislation (see below). The United States retains title to the WRSA stocks, and title must be

131 “U.S. - Israel Strategic Link: Both Sides Take Stock,” New York Times, October 2, 1981.
132 “U.S. Tells Israel it Plans to Sell Saudis 300 Tanks,” New York Times, September 29, 1989.
133 In October 1989, the United States and Israel agreed to pre-position $100 million worth of dual-use defense
equipment in Israel.
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transferred before the foreign country may use them. The FY2021 Consolidated Appropriations
Act extended the authorization of WRSA-Israel (WRSA-I) through FY2023.134
Until 2021, the United States European
Command (EUCOM) managed the WRSA-I
Figure 10. Army Officers Inspect WRSA-I
program.135 Since then, U.S. Central
Command (CENTCOM) has managed the
program, through which the United States
stores missiles, armored vehicles, and artillery
ammunition in Israel.136 According to one
Israeli officer in 2010, “Officially, all of this
equipment belongs to the US military…. If
however, there is a conflict, the IDF [Israel
Defense Forces] can ask for permission to use
some of the equipment.”137 According to one
expert, “WRSA-I is a strategic boon to Israel.

The process is streamlined: No 60-day
congressional notification is required, and
Source: 405th Army Field Support Brigade exercises
War Reserve Stocks for Allies transfer. (Defense
there’s no waiting on delivery.”138 In February
Visual Information Distribution Service, February 28,
2019, as part of the bilateral military exercise
2019.)
Juniper Falcon 2019, officers from the 405th
Army Field Support Brigade simulated a transfer of munitions from the WRSA-I to Israeli
Defense Forces control (see Figure 10).
Since 1989, Israel has requested access to the stockpile on at least two occasions, including the
following:
 During the summer 2006 war between Israel and Hezbollah, Israel requested that
the United States expedite the delivery of precision-guided munitions to Israel.
The George W. Bush Administration did not use the emergency authority
codified in the AECA, but rather allowed Israel to access the WRSA-I stockpile.
 In July 2014, during Israeli military operations against Hamas in the Gaza Strip,
the Defense Department permitted Israel to draw from the stockpile, paid with

134 The 2021 NDAA, P.L. 116-283, reauthorized WRSA-I through FY2025. However, the House Office of Legislative
Counsel ruled that because the FY2021 NDAA had tried to reauthorize WRSA-I for years that were already addressed
in law by the FY2021 Omnibus (the Omnibus passed 5 days before the NDAA), the FY2021 NDAA’s reauthorizing
amendment on WRSA-I “could not be executed.” See, https://www.govinfo.gov/content/pkg/COMPS-
11978/pdf/COMPS-11978.pdf.
135 In January 2021, President Trump directed that Israel be transferred from the area of responsibility (AOR) of
EUCOM to that of U.S. Central Command (CENTCOM). CENTCOM formalized Israel’s move in September 2021.
136 At present, the United States and Israel have a bilateral agreement that governs the storage, maintenance, in-country
transit, and other WRSA-related costs. The government of Israel, using both its national funds and FMF, pays for the
construction, maintenance and refurbishment costs of WRSA ammunition storage facilities. It also pays for the
packaging, crating, handling and transportation of armaments to and from the stockpile. In any future expedited
procedure, reserve stocks managed by CENTCOM could be transferred to Israel; then, U.S. officials would create an-
after-the-fact Foreign Military Sale to account for the transferred equipment.
137 “US may give Israel Iraq Ammo,” Jerusalem Post, February 11, 2010.
138 “Best Friends Don’t Have to Ask,” Politico Magazine, August 14, 2014.
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FMF, to replenish 120-mm tank rounds and 40-mm illumination rounds fired
from grenade launchers.139
In 2022 and 2023, the United States reportedly withdrew 300,000 155-millimeter artillery
shells from WRSA-I (and additional materiel from the U.S. stockpile in South Korea) to
send to Ukraine.140 According to multiple reports, Israeli officials acceded to the
Pentagon’s request in order to avoid confrontation with the United States and because,
according to one Israeli official, “it’s their ammunition and they don’t really need our
permission to take it.”141
At times, Congress has passed legislation authorizing the U.S. military to increase the value of
materiel stored in Israel. According to DSCA, “It should be understood that no new procurements
are involved in establishing and maintaining these stockpiles. Rather, the defense articles used to
establish a stockpile and the annual authorized additions represent defense articles that are
already within the stocks of the U.S. armed forces. The stockpile authorizing legislation simply
identifies a level of value for which a stockpile may be established or increased.”142
Stockpiling Precision-Guided Munitions for Israel
Since 2014, Israel has requested that the U.S. military increase its stockpile of precision-guided munitions (PGMs)
stored in Israel for possible Israeli emergency use against state and non-state actors (Hezbol ah, Hamas, and other
terrorist groups). Section 1273 of P.L. 115-232, the John S. McCain National Defense Authorization Act for Fiscal
Year 2019, authorized the President to conduct a joint assessment of the quantity and type of PGMs necessary for
Israel in the event of a prolonged war.
Section 1275 of P.L.116-283, the 2021 NDAA, amended Section 514 of the FAA (for a three-year period only) to
enable the President to transfer PGMs to Israel without regard to annual limits on their value once they were
stored in Israel provided that such a transfer, among other things, does not harm the U.S. supply of PGMs and the
combat readiness of the United States. This provision requires the President to certify to Congress that any
transfer meets these statutory conditions. It also requires another assessment of the quantity and type of PGMs
necessary for Israel in the event of a prolonged war.
For the years 2024 through 2030, Israeli defense budget planners reportedly are prioritizing the replenishment of
the country’s PGM stocks, with plans to make substantial purchases from the United States.143
If the U.S. military has contributed the maximum amount legally permitted in each applicable
fiscal year, then the non-inflation-adjusted value of materiel stored in Israel would currently stand
at $4 billion. The following legislation authorized increases in value to the stockpile:
 FY1990: P.L. 101-167, the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1990, provided $165 million for all stockpile
programs and expanded their locations to include Korea, Thailand, NATO
members, and countries which were then major non-NATO allies (Australia,
Japan, Korea, Israel, and Egypt). Although the act did not specify funds for
Israel, of the $165 million appropriated, $10 million was for Thailand, $55

139 “U.S. Defends Supplying Israel Ammunition during Gaza Conflict,” Reuters, July 31, 2014.
140 Eric Schmitt, Adam Entous, Ronen Bergman, John Ismay, and Thomas Gibbons-Neff, “Pentagon Sends U.S. Arms
Stored in Israel to Ukraine,” New York Times, January 17, 2023.
141 Barak Ravid, “U.S. sends weapons stored in Israel to Ukraine,” Axios, January 18, 2023.
142 Defense Institute of Security Assistance Management (DISAM), DISAM’s Online Greenbook, Chapter 2, Security
Legislation and Policy.
143 Anna Ahronheim, “IDF lacks ammunition and spare parts in inventory - comptroller report,” Jerusalem Post, March
9, 2022.
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million was for South Korea, and $100 million was intended as an initial
authorization for Israel.144
 FY1991: P.L. 101-513, the Foreign Operations, Export Financing, and Related
Programs Appropriations Act for FY1991, authorized additions to defense
articles in Israel “not less than” $300 million in value for FY1991.
 FY1993: P.L. 102-391, the Foreign Operations, Export Financing, and Related
Programs Appropriations Act for FY1993, authorized additions to defense
articles in Israel “not less than” $200 million in value for FY1993.
 FY1994: P.L. 103-87, the Foreign Operations, Export Financing, and Related
Programs Appropriations Act for FY1994, authorized additions to defense
articles in Israel up to $200 million in value for FY1994.
 FY1995: P.L. 103-306, the Foreign Operations, Export Financing, and Related
Programs Appropriations Act for FY1995, authorized a total addition to defense
articles in Israel of $200 million for FYs 1994 and 1995.
 FY2007-FY2008: Section 13(a)(2)(A)(i) of the Department of State Authorities
Act of 2006 (P.L. 109-472) amended Section 514 of the FAA, as amended (P.L.
87-195; 22 U.S.C. §2321h) to authorize additions to defense articles in Israel of
up to $200 million in value for each of FY2007 and FY2008.145
 FY2011-FY2012: P.L. 111-266, the Security Cooperation Act of 2010, authorized
additions to defense articles in Israel up to $200 million in value for each of
FY2011 and FY2012.
 FY2014-FY2015: P.L. 113-296, the United States-Israel Strategic Partnership Act
of 2014, authorized additions to defense articles in Israel up to $200 million in
value for each of FY2014 and FY2015.
 FY2016-FY2017: Section 7034(k)(11)(B) of P.L. 114-113, the FY2016
Consolidated Appropriations Act, authorized additions to defense articles in
Israel up to $200 million in value for each of FY2016 and FY2017.
 FY2018-FY2019: Section 7034(l)(7) of P.L. 115-141, the FY2018 Consolidated
Appropriations Act, authorized additions to defense articles in Israel up to $200
million in value for each of FY2018 and FY2019.
 FY2019-FY2020: Section 7048(b)(4)(B) of P.L. 116-6, the FY2019 Consolidated
Appropriations Act, authorized additions to defense articles in Israel up to $200
million in value for each of FY2019 and FY2020.146
 FY2021-FY2023: Section 7035(b)(3) of P.L.116-260, the FY2021 Consolidated
Appropriations Act, authorized additions to defense articles in Israel up to $200
million in value for each of FY2021, FY2022, and FY2023.

144 Dr. Louis J. Samelson, “Military Assistance Legislation for Fiscal Year 1990,” The DISAM Journal, Winter,
1989/1990.
145 This increase for each fiscal year is based on legislative language contained in Section 12002 of P.L. 108-287, the
Department of Defense Appropriations Act, 2005.
146 P.L. 116-94, the FY2020 Consolidated Appropriations Act also authorized additions to defense articles in Israel up
to $200 million in value for each of FY2020 and FY2021.
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Defense Budget Appropriations for Anti-Tunnel
Defense

In 2016, the Israeli and U.S. governments began collaborating on a system to detect underground
smuggling tunnels and to counter cross-border tunnels used (most prominently by Hamas in the
summer 2014 conflict) to infiltrate Israel. Reportedly, this technology uses acoustic or seismic
sensors and software to detect digging.147 This
technology may be based on discovery
Table 5. U.S.-Israeli Anti-Tunnel
techniques used in the oil and natural gas
Cooperation
sector.148
current U.S. dollars in millions
Section 1279 of P.L. 114-92, the FY2016
Fiscal Year
Appropriation
National Defense Authorization Act,
authorized the establishment of a U.S.-Israeli
FY2016
40.0
anti-tunnel cooperation program.149 This
FY2017
42.5
authorization allowed funds from the research,
FY2018
47.5
development, test, and evaluation defense-
wide account to be used (in combination with
FY2019
47.5
Israeli funds) to establish anti-tunnel
FY2020
-
capabilities that “detect, map, and neutralize”
FY2021
47.5
underground tunnels that threaten the United
FY2022
47.5
States or Israel. The authorization requires the
Secretary of Defense to report to Congress on,
FY2023
47.5
among other things, the sharing of research
Total
320.0
and development costs between the United
States and Israel.
Source: Joint Explanatory Statements

accompanying Consolidated Appropriations Acts
Over the years, the Israel Defense Forces have
for FY2016-2023. See, – “Combatting Terrorism
become more adept at detecting tunnels. In
Technology Support” in Defense Explanatory
Statement.
2021, Israel completed an anti-tunnel barrier
along the entirety of the 40-mile Israel-Gaza border. The barrier is an underground concrete wall
equipped with sensors. Israeli anti-tunnel technology reportedly has detected Hamas tunnels at
depths of up to 230 feet belowground.150
Defense Budget Appropriations for Countering
Unmanned Aerial Systems
As UAV technology has proliferated across the Middle East, Israel has sought U.S. assistance in
countering various systems used by state and non-state actors. In an effort to counter unmanned
drones, states are researching various methods to detect incoming unmanned aircraft (using radio

147 “Israel’s Underground War—Technology and Specialist Troops deployed in face of Subterranean Threat,” Wall
Street Journal
, March 2, 2016.
148 “Israeli official bets advances in anti-tunnel technology will secure Gaza border,” Washington Post, March 6, 2018.
149 Section 1279 of P.L. 116-92, the FY2020 National Defense Authorization Act, extended the authority of the anti-
tunnel cooperation program through December 31, 2024.
150 “230 feet down: Elite IDF unit reveals deepest Hamas tunnel ever found,” Times of Israel, April 2, 2022.
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or optical sensors) and then either disabling, destroying, or seizing them by jamming their
communications, intercepting their flight paths, or hacking their electronic systems.151 Several
Israeli companies have counter-drone solutions in development, including: Drone Dome (Rafael),
ReDrone (Elbit Systems), and Drone Guard (IAI). According to one unnamed executive at IAI,
“Drone defense is an expensive business as countries have a large number of facilities to
protect....It’s a crazy arms race because the technological possibilities for drone use continue to
increase.”152
Congress first authorized a cooperative U.S.-
Israeli Counter Unmanned Aerial Systems (C-
Table 6. U.S.-Israeli Anti-Drone
UAS) program by expanding the scope of the
Cooperation
anti-tunnel cooperation program for
current U.S. dollars in millions
FY2019.153 In the FY2020 NDAA (P.L. 116-
Fiscal Year
Appropriation
92), Congress created a separate authority
(Section 1278), which authorized the
FY2020
13.0
Secretary of Defense to “carry out research,
FY2021
25.0
development, test, and evaluation activities,
on a joint basis with Israel, to establish
FY2022
25.0
capabilities for countering unmanned aerial
FY2023
25.0
systems that threaten the United States or
Total
88.0
Israel.” Section 1278 required a matching
contribution from the government of Israel
Source: Joint Explanatory Statements
and capped the annual U.S. contribution at
accompanying Consolidated Appropriations Acts
2020-2023. See “Combatting Terrorism
$25 million. Congress authorized the program
Technology Support” in Defense Explanatory
through FY2024.
Statement.
Section 1277 of P.L. 117-263, the James M.
Inhofe National Defense Authorization Act for Fiscal Year 2023, modifies the authorization for
the C-UAS program to now include “directed energy capabilities.”154 It also raises the cap on
annual U.S. contributions to the program from $25 to $40 million. It extends the program’s
authorization through calendar year 2026.
Aid Restrictions and Possible Violations
U.S. aid and arms sales to Israel, like those to other foreign recipients, are subject to U.S. law.
Some U.S. citizens and interest groups periodically call upon Congress to ensure that U.S.
military assistance to Israel complies with applicable U.S. laws and policies and with
international humanitarian law.

151 Ilan Ben Zion, “As Attack Drones Multiply, Israeli Firms Develop Defenses,” Associated Press, September 26,
2019.
152 “Why Drones Are Becoming Iran’s Weapons of Choice,” The Economist, November 10, 2021.
153 See Section 1272 of P.L. 115-232, the John S. McCain National Defense Authorization Act for Fiscal Year 2019.
154 Section 1280 of P.L.116-283, the 2021 NDAA, stated that the Defense Department may establish a program to carry
out “research, development, test, and evaluation activities, on a joint basis with Israel, to promote directed energy
capabilities of mutual benefit to both the United States and Israel...”
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Arms Sales and Use of U.S.-Supplied Equipment155
The 1952 Mutual Defense Assistance Agreement and subsequent arms agreements between Israel
and the United States limit Israel’s use of U.S. military equipment to defensive purposes.156 The
AECA (22 U.S.C. §2754) authorizes the sale of U.S. defense articles and services for specific
purposes, including “legitimate self-defense.”157 The AECA (22 U.S.C. §2753) states that
recipients may not use such articles “for purposes other than those for which [they have been]
furnished” without prior presidential consent. The AECA also states in 22 U.S.C. §2753 that the
consent of the President shall not be required for the transfer by a foreign country or international
organization of defense articles sold by the United States, if the recipient is the government of a
member country of NATO, the Government of Australia, the Government of Japan, the
Government of the Republic of Korea, the Government of Israel, or the Government of New
Zealand. The act stipulates that sale agreements entered into after November 29, 1999 must grant
the U.S. government the right to verify “credible reports” that articles have been used for
unauthorized purposes. The FAA of 1961, as amended, also contains general provisions on the
use of U.S.-supplied military equipment.158
Section 502B of the Foreign Assistance Act
Section 502B(a)(2) of the FAA (22 U.S.C. §2304(a)(2)) stipulates that, absent the exercise of
certain presidential waivers due to extraordinary circumstances, “no security assistance may be
provided to any country the government of which engages in a consistent pattern of gross
violations of internationally recognized human rights.”159 For the purposes of Section 502B,
“security assistance” is defined broadly to include sales of defense articles or services, extensions
of credits, and guaranties of loans under the AECA, licenses for exports to foreign government
military or security forces, and certain categories of assistance authorized under the FAA. The
term “gross violations of internationally recognized human rights” is defined to include 1)
“torture or cruel, inhuman, or degrading treatment or punishment”; 2) “prolonged detention
without charges and trial”; 3) forced disappearance; and 4) “other flagrant denial of the right to
life, liberty, or the security of person.” Pursuant to this provision, the executive branch may make
a determination that a foreign government has engaged in “a consistent pattern of gross violations
of internationally recognized human rights” and is therefore ineligible for security assistance. As
a general matter, the executive branch appears to have rarely restricted assistance pursuant to this
provision. There is no statutory requirement for the executive branch to notify Congress when it
chooses to unilaterally invoke 502B.

155 See, CRS In Focus IF11197, U.S. Arms Sales and Human Rights: Legislative Basis and Frequently Asked
Questions
, by Paul K. Kerr and Liana W. Rosen.
156 U.S. State Department, Treaties in Force, Agreement relating to mutual defense assistance, Entered into force July
23, 1952; TIAS 2675.
157 Pursuant to the AECA, when Israel, like other foreign nations, purchases U.S. defense articles and services, it must
sign a Letter of Offer and Acceptance (LOA) with the United States government. The LOA lists the items and/or
services, estimated costs, and the terms and conditions of sale. Unless otherwise specified, the standard terms and
conditions for Israel are consistent with the general terms for all U.S. arms sales abroad. For a sample LOA, see
Defense Security Cooperation Agency, Security Assistance Management Manual, available at
https://www.samm.dsca.mil/figure/figure-c5f4
158 For example, see (among other sections), Section 502B, Human Rights (22 U.S.C. §2304), Section 505, Conditions
of Eligibility (22 U.S.C. §2314), and Section 511, Considerations in Furnishing Military Assistance (22 U.S.C.
§2321d).
159 op.cit., CRS In Focus (IF11197).
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Pursuant to Section 502B(c), Congress also may, through a resolution of the House or Senate or
by request of the Senate Foreign Relations Committee (SFRC) or House Foreign Affairs
Committee (HFAC), require a report within 30 days from the Secretary of State concerning
human rights in a specific country, including an assessment of whether extraordinary
circumstances exist that necessitate a continuation of security assistance. After receiving such
report, Congress, by joint resolution, may act to terminate, restrict, or continue security assistance
to such country.
End-Use Monitoring
It is the statutory responsibility of the Departments of State and Defense, pursuant to the AECA,
to conduct end-use monitoring (EUM) to ensure that recipients of U.S. defense articles use such
items solely for their intended purposes. The AECA also provides authority to the President
(through a presidential determination) and Congress (joint resolution) to prohibit the sale or
delivery of U.S.-origin defense articles to a recipient country if it has used such articles “for a
purpose not authorized” by the AECA or the FAA.160
Questions over the misuse of U.S.-supplied equipment to Israel have arisen in several instances in
past decades, including over the sale of tear gas to Israel during the late 1980s,161 the sale of
Caterpillar D-9 bulldozers to Israel allegedly used in the destruction of Palestinian homes,162 and
Israel’s 2006 use of U.S.-supplied cluster munitions in Lebanon.163 In 2020 and 2021, some
lawmakers wrote a series of letters to the State Department expressing concern that Israel may
have been using U.S.-origin construction equipment to demolish the homes of Palestinians that
Israel has accused of committing terrorism.164 In House report language accompanying H.R.8282,
the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2023,
appropriators urged “the Secretary of State to address in bilateral consultations with Israel the
importance of ensuring that MOU-supported equipment is not used in any way that undermines
the prospects of a negotiated two-state solution.”165
Human Rights Vetting (Leahy Law)166
Section 620M of the FAA of 1961 (codified as 22 U.S.C. §2378d), as amended, prohibits the
furnishing of assistance authorized by the FAA and the AECA to any foreign security force unit
where there is credible information that the unit has committed a gross violation of human rights.
The State Department and U.S. embassies overseas implement Leahy vetting to determine which
foreign security individuals and units are eligible to receive U.S. assistance or training. In 2022,
Congress amended 22 U.S.C. §2378d to address cases in which the specific unit(s) that will
ultimately receive assistance cannot be identified prior to the transfer of assistance (as may be the

160 See CRS In Focus IF11533, Modifying or Ending Sales of U.S.-Origin Defense Articles, by Paul K. Kerr and Liana
W. Rosen, and CRS In Focus IF10392, Foreign Military Sales Congressional Review Process, by Paul K. Kerr.
161 See Government Accountability Office, Israel: Use of U.S.-Manufactured Tear Gas in the Occupied Territories,
NSIAD-89-128, April 13, 1989.
162 CORRIE v. CATERPILLAR INC, United States Court of Appeals, Ninth Circuit, filed March 15, 2005.
163 See, U.S. State Department, “U.S. Cluster Munitions Policy,” Stephen D. Mull, Acting Assistant Secretary for
Political-Military Affairs, On-the-Record Briefing, May 21, 2008.
164 Posted on Twitter by Congresswoman Rashida Tlaib, March 12, 2021, 2:14pm.
165 H.Rept. 117-401, State, Foreign Operations, and Related Programs Appropriations Bill, 2023.
166 For background, see CRS InFocus IF10575, Global Human Rights: Security Forces Vetting (“Leahy Laws”),
Updated August 5, 2022.
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case for some equipment). For such cases, the Secretary of State is to regularly provide the
recipient government a list of units that are prohibited from receiving assistance and, effective
December 31, 2022, such assistance “shall only be made available subject to a written agreement
that the recipient government will comply with such prohibition.” The United States and Israel
maintain such an agreement.
In May 2022, prominent Al Jazeera journalist Shireen Abu Akleh (a U.S. citizen) was killed by a
gunshot in an area of Jenin where Israeli security forces were trading fire with Palestinians. Her
death triggered an international outcry, as did images of Israeli police disrupting her funeral in
East Jerusalem. In condemning Abu Akleh's killing and an injury suffered by one of her
colleagues, the State Department spokesperson called for an immediate and thorough
investigation.167 In July 2022, the State Department issued a statement that said that the U.S.
Security Coordinator (USSC) for Israel and the Palestinian Authority (PA) oversaw an
independent process, and in summarizing Israeli and PA investigations concluded that Israeli
gunfire likely killed Abu Akleh, but “found no reason to believe that this was intentional.”168
After conducting an internal investigation, the IDF said in September 2022 that there was a “high
possibility” that Abu Akleh was accidentally hit by IDF gunfire169—eliciting additional public
criticism from PA officials and Abu Akleh family members who assert that the shooting was not
accidental.170 In November 2022, media reports said that the FBI had opened an investigation into
Abu Akleh's death.171
Members have reacted in different ways to calls for investigating the death of Abu Akleh and
possibly applying the Leahy law. In December 2022, eight Senators wrote a letter to the U.S.
Department of Justice demanding that U.S. government investigations into the IDF be closed
immediately.172 During the 117th Congress, Senator Leahy remarked in a floor statement that
“Whether her killing was intentional, reckless, or a tragic mistake, there must be accountability.
And if it was intentional, and if no one is held accountable, then the Leahy Law must be
applied.”173 The explanatory statement accompanying the Senate-introduced 2023 Department of
State, Foreign Operations, and Related Programs Appropriations Act (S. 4662) would have
required a report from the Secretary of State on steps taken to facilitate an independent, credible,
and transparent investigation into Abu Akleh's death, including whether 620M of the Foreign
Assistance Act of 1961 applies.174 This reporting requirement was not included in the enacted
version of the bill (P.L.117-328).
In fall 2022, Ha’aretz reported that staff at the U.S. Embassy in Jerusalem were preparing an
internal report on the IDF’s ultra-Orthodox Netzah Yehuda battalion to determine whether some

167 U.S. State Department, Press Briefing, May 11, 2022.
168 U.S. State Department press statement, “On the Killing of Shireen Abu Akleh,” July 4, 2022.
169 Hiba Yazbek and Patrick Kingsley, “Israel Says Reporter Was Probably Shot By One of Its Forces,” New York
Times
, September 6, 2022.
170 Khaled Abu Toameh, “Palestinians reject IDF probe into Shireen Abu Akleh killing, vow to bring case to ICC,”
Jerusalem Post, September 5, 2022.
171 Barak Ravid, “FBI opens investigation into killing of Palestinian American Shireen Abu Akleh,” Axios, November
14, 2022.
172 Senator James Lankford, Press Release, Lankford, Colleagues Warn FBI Against Politically-Charged Investigation
of Israeli Defense Forces, December 15, 2022.
173 Congressional Record, Senate Speeches and Inserts, Page S4635, Shireen Abu Akleh, September 15, 2022.
174 See, Senate Appropriations Committee, available online at:
https://www.appropriations.senate.gov/imo/media/doc/SFOPSFY23RPT.pdf
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of its soldiers committed violations while serving in the West Bank.175 As of January 2023, the
IDF reportedly had conducted its own investigation of the unit and had dismissed or reassigned
several commanders while transferring the entire battalion from the West Bank to the Golan
Heights.176
Use of U.S. Funds within Israel’s Pre-June 1967 Borders
In some instances, U.S. assistance to Israel may be used only in areas subject to the
administration of Israel prior to June 1967 (see Loan Guarantees). For example, U.S. State
Department-provided Migration and Refugee Assistance (MRA, see Migration and Refugee
Assistance
), per agreement between the State Department and United Israel Appeal, may only
be used for absorption centers, ulpanim (intensive Hebrew-language schools, many of which are
located at immigrant absorption centers with particular focus on immigrants to Israel), or youth
aliyah (relocation to Israel) institutions located within Israel’s pre-June 1967 area of control.177
Until recently, no program funded by the endowments of U.S.-Israeli binational foundations (see
U.S.-Israeli Scientific & Business Cooperation) could be “conducted in geographic areas
which came under the administration of the Government of Israel after June 5, 1967...”178 In
October 2020, the Trump Administration announced that it had removed geographic restrictions
from the founding agreements establishing the three main U.S.-Israeli binational foundations
(BIRD, BARD, BSF), thereby permitting universities in the West Bank to apply for grant
funding.179 According to an October 2020 press statement released by the U.S. Embassy in Israel:
Established in the 1970s, the BIRD, BARD, and BSF Agreements for each of the three
Foundations have not permitted support for projects conducted in areas that came under
the administration of the Government of Israel after June 5, 1967. These geographic
restrictions are no longer consistent with U.S. policy following (i) the Administration’s
opposition to the provisions of United Nations Security Council Resolution 2334, (ii) the
Administration’s recognition of Jerusalem as Israel’s capital and moving the U.S. Embassy
from Tel Aviv to Jerusalem, (iii) the Administration’s recognition of Israel’s sovereignty
over the Golan Heights, and (iv) the Administration’s announcement that the U.S. will no
longer consider that the establishment of civilian settlements in the West Bank is per se
inconsistent with international law.... Updating the Agreements further strengthens the
special bilateral relationship between the United States and Israel and continues efforts to
generate significant mutual scientific and economic benefits.180
In the 117th Congress, Section 5 of H.R.5344, the Two-State Solution Act, would have, among
other things, restricted the United States government from providing “support for projects

175 Amos Harel, “U.S. Examining Allegations Against Israel's Orthodox West Bank Battalion,” Ha’aretz, September 6,
2022.
176 Amos Harel, “Violent ultra-Orthodox Battalion Moves to Golan Heights,” Ha’aretz, January 2, 2023.
177 This stipulation is found in grant agreements between the U.S. State Department’s Bureau of Population, Refugees,
and Migration (PRM) and United Israel Appeal (clause 8. F. 2—Use in Territories Subject to the Administration of the
State of Israel Prior to June 1967).
178 See “Regulations” document at http://www.bsf.org.il/BSFPublic/DefaultPage1.aspx?PageId=221&innerTextID=
221.
179 Noa Landau, Hagar Shezaf, and Shira Kadari-Ovadia, “Netanyahu, Ambassador Friedman Ink Deal Expanding
Scientific Cooperation to Settlements,” Ha’aretz, October 28, 2020.
180 U.S. State Department, U.S., Israel Expand Reach of Binational Foundations and Establish New Scientific and
Technological Cooperation Agreement, U.S. Embassy Jerusalem, Press Release, October 28, 2020.
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conducted in geographic areas which came under the administration of the Government of Israel
after June 5, 1967.” The bill was not considered.
Israeli Arms Transfers to Third Parties
Per Section 3(a) of the AECA (22 U.S.C. §2753) and Section 505(e) of the FAA (22 U.S.C.
§2314), the U.S. government must review and approve any transfer of U.S.-origin equipment
from a recipient to a third party that was not previously authorized in the original acquisition.181
Third Party Transfer (or TPT) is the retransfer of title, physical possession or control of defense
articles from the authorized recipient to any person or organization not an employee, officer or
agent of that recipient country.182
As previously mentioned, Israel is a major global manufacturer of armaments. It also possesses
significant quantities of major U.S.-origin defense equipment stemming from its decades-old
security partnership with the United States. At times, third parties have sought to procure U.S.
equipment held by Israel, and U.S.-Israel differences over approval of retransfer has at times
caused friction in the bilateral relationship. For example, in 2017, Croatia solicited bids for the
procurement of fighter aircraft and, a year later, chose to purchase 12 used F-16 Barak fighters
from Israel in a deal worth an estimated $500 million, conditioned on U.S. TPT approval. In
December 2018, the Trump Administration notified Congress that it had approved the sale, but
only if all Israeli modifications were removed beforehand. Reportedly, Croatia did not want the F-
16s returned to their original condition, and canceled the deal after high-level negotiations
between Israeli and U.S. officials did not resolve the issue.183
Israel and China
Amidst ongoing global U.S.-Chinese competition in various fields, Israel’s defense and
technology trade with China has at times come under U.S. scrutiny.184 Since the middle of the last
decade, Israeli defense exports to China have nearly ceased. Two planned Israeli sales to China
drew significant opposition both from successive Administrations and from Congress
(PHALCON airborne radar systems in 2000 and upgrade of Chinese Harpy Killer drone aircraft
in 2004/2005).185 Apparently as a result of U.S. pressure on Israel to cease its long-standing and
sometimes clandestine defense relationship with China, Israel created its own arms export control
agency, known as the Defense Export Control Agency (DECA – see textbox “Israeli Exports of
Spyware”
). The United States and Israel signed a 2005 bilateral agreement, known as the
“Declaration of Understanding on Technology Exports,” whereby both countries pledged to

181 See, U.S. State Department, “Third Party Transfer Process and Documentation,” Bureau of Political-Military
Affairs, December 17, 2018.
182 See, Defense Institute of Security Cooperation Studies, “The Management of Security Cooperation (Green Book),”
Edition 39, January 2019.
183 “Croatia cancels F-16 Deal with Israel due to U.S. Objections,” Axios, January 10, 2019.
184 See, “The Evolving Israel-China Relationship,” RAND Corporation, 2019.
185 Representative Callahan of Alabama, then Chairman of the Foreign Operations Subcommittee of the House
Appropriations Committee, told a hearing on April 6, 2000, that he would block $250 million in FY2001 military
assistance to Israel unless Israel cancelled the PHALCON sale to China. Representative Callahan offered an
amendment during a June 20 subcommittee markup to withhold $250 million from the $2.88 billion in total economic
and military assistance proposed for Israel for FY2001, but the amendment failed by a vote of nine to six. See, “Israel-
China Radar Deal Opposed,” Washington Post, April 7, 2000 and “U.S. Congressman: We’ll Block Israeli Aid Unless
China Deal Cancelled,” Jerusalem Post, April 7, 2000.
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ensure defense export transparency, with the United States pledging not to ban Israel’s defense
deals on commercial grounds to ensure Israeli competitiveness globally.186
Though official Israeli-Chinese defense ties have essentially ended,187 China is now Israel’s
second largest single-state trading partner (after the United States). There is concern that China
will use Israeli technology transfer in the commercial sphere to compete with the United States
and potentially threaten its national security in various fields, such as cybersecurity, artificial
intelligence, and robotics.188 Partly due to U.S. concerns regarding China’s involvement in
Israel’s economy, Israel created an advisory panel on foreign investment in Israel in late 2019.189
However, this panel reportedly does not have the authority to review investments in sectors such
as high-tech that accounted for most of China’s investments in Israel in the previous decade.190
Successive Administrations and Congress have urged Israel to do more to limit Chinese
investment. Section 1289 of P.L. 116-92, the National Defense Authorization Act for FY2020,
expressed a sense of the Senate that the United States government should “urge the Government
of Israel to consider the security implications of foreign investment in Israel.” According to one
Israeli analysis, President Donald Trump reportedly warned Prime Minister Netanyahu in March
2019 that U.S. security assistance for and cooperation with Israel could be limited if Chinese
companies establish a 5G communications network in Israel, in line with similar warnings that
the Administration had communicated to other U.S. allies and partners.191 In spring 2020, after
the United States again raised concern over Chinese investment in major Israeli projects, the
subsidiary of a Hong Kong-based company lost a bid to build Israel’s largest desalination plant.
Shortly before Israel announced the bid decision, then-Secretary of State Michael Pompeo visited
Israel and publicly stated, “We do not want the Chinese Communist Party to have access to Israeli
infrastructure, Israeli communication systems, all of the things that put Israeli citizens at risk and
in turn put the capacity for America to work alongside Israel on important projects at risk as
well.”192
The Biden Administration also has continued to warn regional partners about Chinese investment
in critical infrastructure. According to one unnamed U.S. Embassy in Israel spokesperson, “We
would like to see Israel’s investment screening system strengthened and expanded, especially in
the field of high tech.... We have been candid with our Israeli friends over risks to our shared
national security interests.”193 In 2022, after repeated high level U.S. engagement with Israel on

186 “Israel, U.S. Draft Agreement for Openness, Equality in Arms Deals,” Ha’aretz, June 27, 2005.
187 In late 2021, three Israeli companies and 10 suspects were indicted on charges of exporting cruise missiles to China
without a permit. According to one report, “Israel is home to some 1,600 licensed arms exporters, which employ
150,000 to 200,000 people. In addition, there is a large supply chain of subcontractors who supply software, hardware,
raw materials, and other goods necessary for arms production. DECA is supposed to watch over this massive system,
guided by strict rules governing Israel’s arms export industry. The body, which operates with nearly no transparency, is
supposed to vet deals to ensure that arms do not go to enemy countries, endanger Israel in any way, include classified
technology, or stand to harm Israel’s international standing.” See, “10 Israelis set to be Indicted for Illegally Exporting
Missiles to China,” Times of Israel, December 20, 2021.
188 “China Tech Push in Israel Stirs Security Fears,” Wall Street Journal, February 12, 2019.
189 Arie Egozi, “Israelis Create Foreign Investment Overseer; China Targeted,” Breaking Defense, November 13, 2019.
190 Shira Efron et al., Chinese Investment in Israeli Technology and Infrastructure: Security Implications for Israel and
the United States
, RAND Corporation, 2020, pp. 24-25.
191 Hiddai Segev, Doron Ella, and Assaf Orion, “My Way or the Huawei? The United States-China Race for 5G
Dominance,” Institute for National Security Studies, Insight No. 1193, July 15, 2019.
192 Shirley Zhao and Ivan Levingston, “Li Ka-Shing Hong Kong Group Loses Israel Deal amid U.S. Push,” Bloomberg,
May 26, 2020.
193 Sarah Zheng and Coco Liu, “The US is Thwarting China’s Love Affair with Israeli Tech,” Bloomberg, July 12,
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China, Israel reportedly agreed to “update Washington about any major deals with Beijing,
especially in infrastructure and technology” and said it “would reconsider any such deals at
America’s request.”194 In early 2022, Israel chose other foreign companies over Chinese bidders
for the next phase of Tel Aviv’s light rail construction. During President Biden’s visit to Israel in
summer 2022, the United States and Israel launched the “U.S.-Israel Strategic High-Level
Dialogue on Technology,” which, among other things, will focus on managing “risks to our
respective technology ecosystems, including in research security, export controls, and investment
screening.”195
In summer 2022 testimony before the Senate Foreign Relations Committee, Assistant Secretary of
State for Near Eastern Affairs Barbara Leaf noted:
We have been frank with our Israeli friends about our concerns, and the value of rigorous
investment screening mechanisms to ensure that technology, strategic infrastructure, and
other critical assets are not compromised by external funding. Israel's adoption of such a
mechanism has been a critical first step, and one we would like to help them improve upon.
We also hope to work together on other issues like monitoring research institutions and
expanding export controls to protect Israel's valuable technological contributions from
being exploited by PRC companies.196













2022.
194 Lahav Harkov, “Israel Agrees to Update US about China Trade to Avoid Tension,” Jerusalem Post, January 3,
2022.
195 The White House, Fact Sheet: U.S.-Israel Strategic High-Level Dialogue on Technology, September 30, 2022.
196 Senate Foreign Relations Committee, Near East, South Asia, Central Asia and Counterterrorism Subcommittee,
Hearing entitled, “China's Role in the Middle East,” Testimony of Barbara Leaf, Assistant Secretary of State for Near
Eastern Affairs, U.S. State Department, August 4, 2022.
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Other Ongoing Assistance and
Cooperative Programs

Migration and Refugee Assistance
Since 1973, Israel has received a total of approximately $1.69 billion in grants from the State
Department’s Migration and Refugee Assistance account (MRA) to assist in the resettlement of
migrants to Israel.197 Funds are paid to the
United Israel Appeal, a private philanthropic
Table 7. Migration and Refugee
organization in the United States, which in
Assistance Funding Levels for Israel
turn transfers the funds to the Jewish Agency
current U.S. dollars in millions
for Israel.198 Between 1973 and 1991, the
United States provided about $460 million for
Fiscal Year
Total
resettling Jewish refugees in Israel. From 1992
to 1999, after the collapse of the Soviet Union
FY2000-FY2012
$519.3
and the resettlement of hundreds of thousands
FY2013
$15.0
of Jewish immigrants in Israel, MRA grants to
FY2014
$15.0
Israel increased to almost $80 million per year
FY2015
$10.0
($630 million). Since then, annual grants have
decreased based at least in part on the
FY2016
$10.0
declining number of Jews leaving the former
FY2017
$7.5
Soviet Union and other areas for Israel (see
FY2018
$7.5
Table 7). MRA assistance largely supports
Jews who have migrated from Ethiopia.
FY2019
$5.0

FY2020
$5.0
Congress has changed the directive language
since the first refugee resettlement funds were
FY2021
$5.0
appropriated in 1973. At first, the
FY2022
$5.0
congressional language said the funds were
FY2023
$5.0
for “resettlement in Israel of refugees from the
Union of Soviet Socialist Republics and from
Total
$609.3
Communist countries in Eastern Europe.” But
Source: U.S. State Department.
starting in 1985, the language was simplified
to “refugees resettling in Israel” to ensure that Ethiopian Jews would be covered by the funding.
Technically, the legislative language designates funds for refugee resettlement, but in Israel little
differentiation is made between Jewish “refugees” and other Jewish immigrants, and the funds are
used to support the absorption of all Jewish immigrants.


197 The MRA account is authorized by 22 U.S.C. § 2601. Funding for the account comes from appropriations in the
foreign operations appropriations bill.
198 The Jewish Agency for Israel’s website is available at http://www.jafi.org.il/.
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Loan Guarantees
Overview
Since 1972, the United States has extended loan guarantees to Israel to assist with housing
shortages, Israel’s absorption of new immigrants from the former Soviet Union and Ethiopia, and
its economic recovery following the 2000-2003 recession, which was probably caused in part by
the Israeli-Palestinian conflict known as the second intifada. Loan guarantees are a form of
indirect U.S. assistance to Israel; they enable Israel to borrow from commercial sources at lower
rates. Congress directs that subsidies be set aside in a U.S. Treasury account in case of a possible
Israeli default. These subsidies, which are a percentage of the total loan (based in part on the
credit rating of the borrowing country), have come from the U.S. or Israeli government.199 Israel
has never defaulted on a U.S.-backed loan guarantee.
Loan Guarantees for Economic Recovery
In 2003, then-Prime Minister Ariel Sharon requested an additional $8 billion in loan guarantees to
help the Israeli government stimulate Israel’s then-ailing economy. The loan guarantee request
accompanied a request for an additional $4 billion in military grants to help Israel prepare for
possible attacks during an anticipated U.S. war with Iraq. P.L. 108-11, the FY2003 Emergency
Wartime Supplemental Appropriations Act, authorized $9 billion in loan guarantees over three
years for Israel’s economic recovery and $1 billion in military grants. P.L. 108-11 stated that the
proceeds from the loan guarantees could be used only within Israel’s pre-June 5, 1967, area of
control; that the annual loan guarantees could be reduced by an amount equal to the amount Israel
spends on settlements outside of Israel’s pre-June 1967 area of control; that Israel would pay all
fees and subsidies; and that the President would consider Israel’s economic reforms when
determining terms and conditions for the loan guarantees.200
On November 26, 2003, the Department of State announced that the $3 billion in loan guarantees
for FY2003 were reduced by $289.5 million because Israel continued building settlements in the
occupied territories and constructing of a security barrier separating key Israeli and Palestinian
population centers.201 In FY2005, the U.S. government reduced the amount available for Israel to
borrow by an additional $795.8 million. Since then, Israel has not borrowed any funds.
According to the U.S. Department of the Treasury, Israel is legally obligated to use the proceeds
of guaranteed loans for refinancing its government debt and also has agreed that proceeds shall
not be used for military purposes or to support activities in areas outside its pre-June 5, 1967,
areas of control. However, U.S. officials in 2009 noted that because Israel’s national budget is

199 Office of Management and Budget, Credit Supplement, Budget of the U.S. Government, Fiscal Year 2023.
200 According to P.L. 108-11, “[Loan] guarantees may be issued under this section only to support activities in the
geographic areas which were subject to the administration of the Government of Israel before June 5, 1967: Provided
further
, That the amount of guarantees that may be issued shall be reduced by an amount equal to the amount extended
or estimated to have been extended by the Government of Israel during the period from March 1, 2003, to the date of
issue of the guarantee, for activities which the President determines are inconsistent with the objectives and
understandings reached between the United States and the Government of Israel regarding the implementation of the
loan guarantee program: Provided further, That the President shall submit a report to Congress no later than September
30 of each fiscal year during the pendency of the program specifying the amount calculated under the preceding
proviso and that will be deducted from the amount of guarantees authorized to be issued in the next fiscal year.”
201 U.S. State Department, “Boucher Cites Concerns over Settlement Building and Security Fence Route,” State
Department Press Releases And Documents, November 26, 2003.
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fungible, proceeds from the issuance of U.S.-guaranteed debt that are used to refinance Israeli
government debt free up domestic Israeli funds for other uses.202
As of 2023, Israel had issued $4.1 billion in U.S.-backed bonds.203 After deducting the amounts
mentioned above, Israel might still be authorized to issue up to $3.814 billion in U.S.-backed
bonds. However, if the Israeli government sought to issue new U.S.-backed bonds, it is unclear
whether the loan guarantees available to Israel might be subject to reduction based on Israel’s
estimated cumulative subsequent expenditures for settlements in the West Bank. The original loan
guarantee program authorization for Israel was through FY2005. Since then, Congress has
extended the program five times.204 The program is currently authorized through the end of
FY2023.
In general, Israel may view U.S. loan guarantees as an option of last resort, which its treasury
could use if unguaranteed local and international bond issuances become too expensive.
According to one Israeli official in 2012, “We consider the loan guarantees as preparation for a
rainy day.... This is a safety net for war, natural disaster and economic crisis, which allows Israel
to maintain economic stability in unstable surroundings.”205 Israeli officials may believe that
although they have not used the loan guarantees in the last 18 years, maintaining the program
boosts the country’s fiscal standing among international creditors in capital markets.
American Schools and Hospitals Abroad Program (ASHA)206
Through Foreign Operations appropriations bills, Congress has funded the ASHA program as part
of the overall Development Assistance (DA) appropriation to the United States Agency for
International Development (USAID). According to USAID, ASHA is designed to strengthen self-
sustaining schools, libraries, and medical centers that best demonstrate American ideals and
practices abroad. ASHA has been providing support to institutions in the Middle East since 1957,
and a number of universities and hospitals in Israel have been recipients of ASHA grants.
Institutions based in Israel combined receive $2-$4 million annually in ASHA grants. In FY2021,
(the most recent year for which data are available), ASHA grant recipients in Israel/West Bank
included American Committee for Shaare Zedek Hospital in Jerusalem, Trustees of the Feinberg
Graduate School, and the Nazareth Project, Inc. According to USAID, institutions based in Israel
have received the most program funding in the Middle East region.207
U.S.-Israeli Scientific & Business Cooperation
In the early 1970s, Israeli academics and business professionals began looking for ways to
expand investment in Israel’s nascent technology sector. The sector, which would later become

202 CRS correspondence with the U.S. Department of the Treasury’s Office of International Affairs, October 2009.
203 This includes $1.6 billion in FY2003; $1.75 billion in FY2004; and $750 million in FY2005.
204 P.L. 116-6, the FY2019 Consolidated Appropriations Act, extended the program until September 30, 2023, allowing
unused amounts to be carried over into FY2024.
205 “U.S. to Grant Three-year Extension of Loan Guarantees to Israel,” Ha’aretz, January 24, 2012.
206 According to USAID, recipients of ASHA grants on behalf of overseas institutions must be private U.S.
organizations, headquartered in the United States, and tax-exempt. The U.S. organization also must serve as the
founder and/or sponsor of the overseas institution. Schools must be for secondary or higher education and hospital
centers must conduct medical education and research outside the United States. Grants are made to U.S. sponsors for
the exclusive benefit of institutions abroad. See https://www.usaid.gov/work-usaid/business-funding/grant-
programs/american-schools-and-hospitals-abroad.
207 CRS correspondence with USAID ASHA, October 2018.
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the driving force in the country’s economy, was in need of private capital for research and
development. The United States and Israel launched several programs to stimulate Israeli
industrial and scientific research, and Congress has on several occasions authorized and
appropriated funds for this purpose to the following organizations: 208
The BIRD Foundation (Israel-U.S. Binational Research & Development
Foundation).209 BIRD, which was established in 1977, provides matchmaking
services between Israeli and American companies in research and development
with the goal of expanding cooperation between U.S. and Israeli private high-
tech industries. The mission of the Foundation is “to stimulate, promote and
support joint (nondefense) industrial R&D of mutual benefit to…” the two
countries.210 Projects are supported in the areas of homeland security,
communications, electronics, electro-optics, software, life sciences, and
renewable and alternative energy, among others.211 According to the Foundation,
$381 million in grants have been awarded to 1,033 projects. Awards typically
range from $700,000 to $900,000 and vary based on total project budget and
other considerations. The recipients must provide at least 50% of the total project
budget.
The BSF Foundation (U.S.-Israel Binational Science Foundation).212 BSF,
which was started in 1972, promotes cooperation in scientific and technological
research. Since 2012, BSF has partnered with the National Science Foundation
(NSF) to jointly fund collaborative U.S.-Israeli scientific research. In August
2019, Israel’s Council of Research announced that it would provide $56 million
over a five-year period to expand the BSF-NSF program.
The BARD Foundation (Binational Agriculture and Research and Development
Fund). BARD was created in 1978213 and supports U.S.-Israeli cooperation in
agricultural research.214 As of 2020, it had disbursed $315 million in grants

208 With the exception of funding for specific fields of research (for example, see “U.S.-Israeli Energy Cooperation”
section), Congress has not appropriated funding directly to the binational foundations for operational expenses since the
mid-1980s.The foundations have been able to sustain grant making with interest earned from their respective
endowments and fees (repayments) collected from companies who successfully profited after receiving research
support from the foundations. Since its founding, BIRD has received $115 million in fees from 477 companies.
209 See https://www.birdf.com/. Congress helped establish BIRD’s endowment with appropriations of $30 million and
$15 million in 1977 (P.L. 95-26) and 1985 (P.L. 98-473), respectively. These grants were matched by the Israeli
government for a total endowment of $90 million.
210 Eitan Ydilevich, “Building U.S.-Israel Economic Partnerships, The BIRD Model,” Washington, D.C., June 10,
2010, p. 2.
211 BIRD Foundation, “What is BIRD?” available at https://www.birdf.com/what-is-bird/.
212 See, https://www.bsf.org.il/. In 1972 and 1984, the United States and Israel contributed a total of $100 million ($50
million each) for BSF’s endowment. The U.S. share ($50 million) first came in 1972 in the form of a $30 million
accelerated Israeli repayment of earlier food aid debt to the United States. A second tranche followed in 1984 with $20
million congressional appropriation (P.L. 98-473). According to the treaty establishing the Foundation, the Foundation
shall use the interest, as well as any funds derived from its activities, for the operations of the Foundation.
213 Congress originally authorized BARD in Section 1458(e) of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. §3291(e)).
214 See http://www.bard-isus.com/. Congress helped establish BARD’s endowment with appropriations of $40 million
and $15 million in 1979 (P.L. 95-481) and 1985 (P.L. 98-473), respectively. These grants were matched by the State of
Israel for a total endowment of $110 million. Congress had provided funds for BARD in annual Agriculture
Appropriations legislation at approximately $500,000 to $1 million a year. For FY2023, Congress appropriated $2
million for BARD to expand programming for food and nutrition, technology acceleration, and artificial intelligence.
See, House Report Language (House Report 117-392 accompanying H.R.8239, the Agriculture, Rural Development,
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(typically three-year, $310,000 grants) for over 1,330 projects.215 In the 115th
Congress, P.L. 115-334 amended the original 1977 authorization of binational
agricultural cooperation by adding that BARD should promote research in “drip
irrigation, pesticides, aquaculture, livestock, poultry, disease control, and farm
equipment.” In 2018, BARD signed a cooperative agreement with the National
Institute of Food and Agriculture. Congress has encouraged cooperation between
those two entities.216
 In 1995, the United States and Israel established the U.S.-Israel Science and
Technology Foundation (USISTF) to fund and administer projects mandated by
the U.S.-Israel Science and Technology Commission (USISTC),217 a bilateral
entity jointly established by the United States Department of Commerce and the
Israel Ministry of Industry, Trade, and Labor in 1994 to foster scientific,
technological, and economic cooperation between the two countries.
Since 2007, Congress has repeatedly authorized and appropriated funds for the creation of new
U.S.-Israeli cooperative programs in various fields. Most of these new programs fall under the
administrative purview of the BIRD Foundation. They include the following:
U.S.-Israeli Energy Cooperation (BIRD Energy)
BIRD Energy is a cooperative program between the U.S. Department of Energy and the Israeli
Ministry of Energy designed to further research in renewable energy and energy efficiency. It is
nominally part of the BIRD Foundation. Congress authorized the creation of the program in
Section 917 of P.L. 110-140, the Renewable Fuels, Consumer Protection, and Energy Efficiency
Act of 2007.218 Although the law did not appropriate any funds for joint research and
development, it did establish a grant program to support research, development, and
commercialization of renewable energy or energy efficiency. The law also authorized the
Secretary of Energy to provide funds for the grant program as needed. Congress authorized the
program for seven years from the time of enactment, which was on December 19, 2007. Then, in
December 2014, President Obama signed into law P.L. 113-296, the United States-Israel Strategic
Partnership Act of 2014, which reauthorized the U.S.-Israeli Energy Cooperation program for an
additional 10 years until September 30, 2024.

Food and Drug Administration, and Related Agencies Appropriations Bill, 2023).
215 Shoshanna Solomon, “20 Agriculture Projects of US-Israel Fund Added $3 Billion to Economies,” Times of Israel,
November 16, 2020.
216 See, the Explanatory Statement for Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Bill, 2021, accompanying the FY2021 Consolidated Appropriations Act.
217 See, http://usistf.org/. The U.S.-Israel Science and Technology Commission (USISTC) was established in 1993 to
facilitate cooperative ventures between high tech industries in the two countries. The goal of the program is to “to
maximize the contribution of technology to economic growth.” While the collaborative work may be somewhat similar
to that supported by the BIRD Foundation, “the Science and Technology Commission assists in the commercialization
of new technologies with longer lead times to market. These projects involve higher risk and require substantial capital
commitments.” The ventures are funded and administered by the U.S.-Israel Science and Technology Foundation. The
U.S. and Israeli governments each committed $15 million to the effort over three years for a total of $30 million.
218 Congress first considered authorizing a program to expand U.S.-Israeli scientific cooperation in the field of
renewable energy in legislation entitled, The United States-Israel Energy Cooperation Act (H.R. 1838—110th
Congress).
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Through FY2023, Congress and the Administration have provided a total of $27.7 million for
BIRD Energy.219 As of 2023, total combined U.S. and Israeli investment in BIRD Energy for 54
signed projects stood at $45.7 million.
U.S.-Israel Center of Excellence in Energy, Engineering and Water Technology
(Energy Center)

In 2018, the U.S. Department of Energy and the Israeli Energy Ministry agreed to establish a new
program known as the U.S.-Israel Center of Excellence in Energy, Engineering and Water
Technology (“the Energy Center”). To date, Congress has appropriated220 $24 million for the
center, and the Israeli government and private sector partners have matched those funds.221
Potential research areas identified by the Energy Center include energy cybersecurity in critical
infrastructure, energy storage, and production and utilization of natural gas. According to the
Center, the total expected government funding for the Energy Center is $40 million for 5 years.222
BIRD Homeland Security (BIRD HLS)
The BIRD Foundation also manages the BIRD Homeland Security Program, a cooperative
undertaking between the U.S. Department of Homeland Security (DHS) and the Israel Ministry of
Public Security (MOPS) to further joint research of advanced technologies for Homeland
Security.223 Currently, DHS’s Science and Technology Directorate (S&T) is working together
with Israeli counterparts to develop technologies for first responders.224 To date, Congress has
provided a total of $15 million in funding for BIRD HLS.225 Other examples of bilateral
homeland security projects include search and rescue systems, wearable indoor positioning
systems, and an artificial intelligence-based analytics video security solution used to protect
public facilities.

219 Congress specifies funds for BIRD Energy in conference report language accompanying energy and water
appropriations legislation. For FY2023, see Division D of the Joint Explanatory Statement accompanying the FY2023
Consolidated Appropriations Act.
220 For FY2023, see Division D of the Explanatory Statement accompanying the FY2023 Consolidated Appropriations
Act.
221 The U.S.-Israel Strategic Partnership Act (P.L. 113-296) authorized the President to promote cooperative programs
with Israel in the fields of energy, water, agriculture, and alternative fuel technologies. P.L. 114-322, the WIIN Act
(Water Infrastructure Improvements for the Nation Act), called on the White House Office of Science and Technology
Policy to develop a coordinated strategic plan that, among other things, strengthened “research and development
cooperation with international partners, such as the State of Israel, in the area of desalination technology.”
222 BIRD Foundation, Annual Report, 2020.
223 The U.S.-Israel Strategic Partnership Act (P.L. 113-296) authorized the Secretary of Homeland Security, acting
through the Director of the Homeland Security Advanced Research Projects Agency and with the concurrence of the
Secretary of State, to enter into cooperative research pilot programs with Israel to enhance Israel’s capabilities in
border, maritime, and aviation security, explosives detection, and emergency services. In 2016, Congress passed P.L.
114-304, the United States-Israel Advanced Research Partnership Act of 2016, a law that permanently authorized the
expansion of BIRD HLS to include cybersecurity technologies.
224 U.S. Department of Homeland Security, “Snapshot: Israel & U.S.: A Unique Partnership in Science, Technology
and Business,” January 23, 2018.
225 See Division F of the Joint Explanatory Statement accompanying the FY2023 Consolidated Appropriations Act.
Report language for Division F, FY2023 Department of Homeland Security Appropriations, states that “Unless
otherwise specifically noted in this Joint Explanatory Statement, directives set forth in House Report 117-396 carry the
same weight as those included in the JES.” In House Report 117-396, appropriators provided $2 million for the BIRD
Homeland Security Program.
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BIRD Cyber
Israel is one of the global leaders in cybersecurity technology. According to one report, nearly
40% of private global investment in cybersecurity now takes place in Israel.226 Section 1551 of
P.L.117-81, the National Defense Authorization Act for Fiscal Year 2022, required the
Department of Homeland Security to establish a grant program to support U.S.-Israeli
cooperation in cybersecurity research and commercialization of cybersecurity technology. The act
authorized not less than $6 million a year for such activities from FY2022 through FY2026. The
BIRD Cyber program is a collaboration between the foundation, DHS, Israel’s National Cyber
Directorate, and private industry and academia. BIRD Cyber has identified various sectors of
concentration, such as, among other things, secure architecture for protecting operational
processes; and risk assessment solutions for airports.227 In FY2023, Congress appropriated $6
million
for BIRD Cyber.228
Other Congressionally Authorized Cooperative Endeavors
The following is a list of other congressionally authorized cooperative endeavors between the
United States and Israel, which could lead to the establishment of grant programs managed by
both governments.
Health/COVID-19 Cooperation – Section 1280A of P.L.116-283, the 2021
NDAA, authorized $4 million a year (FY2021-FY2023) for bilateral cooperation
between the U.S. Department of Health and Human Services and the
Government of Israel to focus on health technologies to address the challenge of
the Coronavirus Disease 2019 (COVID-19) pandemic. U.S.-Israeli health
cooperation is longstanding. Since 1978, medical and health researchers from the
U.S. Army and Israel Defense Forces have held the biennial Shoresh conference
to share information on military operational medicine, infectious disease, and
combat care.229 To date, Congress has appropriated $9.08 million for this
cooperative health program.230
U.S.-Israel Cooperation in International Development - In 1985, Congress
first authorized (by amending Section 106 of the FAA) and appropriated foreign
assistance funds to “finance cooperative projects among the United States, Israel,
and developing countries.”231 Based on this congressional mandate, USAID
launched two programs in partnership with Israel: the Cooperative Development
Program (CDP - training and technical assistance projects run by Israel in the
developing world) and the Cooperative Development Research Program (CDR -
scientific research on problems of developing countries). 232 For nearly two

226 op.cit., Bloomberg, July 12, 2022.
227 Yonah Jeremy Bob, “US- Israel joint cybersecurity investment announced,” Jerusalem Post, July 4, 2022.
228 See Division F of the FY2023 Consolidated Appropriations Act.
229 U.S. Army, U.S. and Israeli Collaboration at 20th Shoresh Meeting Promotes Advancement of CBRN Medical
Countermeasure Development, December 8, 2022.
230 See Division H of the FY2023 Consolidated Appropriations Act.
231 See Section 307 of P.L. 99-83, the International Security and Development Cooperation Act of 1985 and P.L. 98-
473, the FY1985 Continuing Appropriations Act. This original legislative concept for U.S.-Israeli cooperation in
international development came from the 98th Congress and was based on H.R.5424, “A bill to provide for joint United
States-Israeli development assistance projects.”
232 USAID partnered with Mashav, Israel's Agency for International Development Cooperation in the Ministry of
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decades, Israel used cash aid grants (either from the ESF or DA accounts) to train
their development personnel in Israel and in foreign nations. USAID phased out
the CDP program after FY2003.233 Section 1278 of P.L.116-283, the 2021
NDAA, further amended Section 106 of the FAA of 1961 (22 U.S.C. §2151d) to
authorize $2 million a year (FY2021-FY2023) to finance cooperative projects
among “the United States, Israel, and developing countries that identify and
support local solutions to address sustainability challenges relating to water
resources, agriculture, and energy storage.” To date, Congress has appropriated
$4 million for this program.234

Foreign Affairs.
233 See Subcommittee on Foreign Operations, Export Financing, Related Programs, House Committee on
Appropriations, Hearings on Foreign Operations, Export Financing, and Related Program, FY2004.
234 Report language for Division K of the FY2023 Consolidated Appropriations Act states that “In implementing this
agreement, Federal departments, agencies, commissions, and other entities are directed to comply with the directives,
reporting requirements, and instructions contained in the H. Rept. 117-401 (House report) accompanying H.R. 8282
(House bill) as though stated in this explanatory statement, unless specifically directed to the contrary.” In House
Report 117-401, appropriators provided $2 million for the U.S. Agency for International Development-Israel
international development cooperation program to respond to challenges relating to water scarcity, agriculture, and
energy storage.
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link to page 51 U.S. Foreign Aid to Israel

Appendix A. Bilateral Aid to Israel
Table A-1
shows cumulative U.S. aid to Israel for FY1946 through FY2020 in current dollars.
Table A-1. U.S. Bilateral Aid to Israel
current U.S. dollars in millions (current non-inflation-adjusted)
Fiscal Year
Economic
Military
Total
1946-2016
34,267.2
91,628.1
125,895.3
2017
50.1
3,178.0
3,228.1
2018
10.8
3,100.1
3,110.9
2019
8.5
3,300.0
3,308.5
2020
10.9
3,300.0
3,310.9
Total
34,347.5
104,506.2
138,853.7
Source: U.S. Agency for International Development (USAID), U.S. Overseas Loans and Grants: Obligations and
Loan Authorizations, July 1, 1945–September 30, 2020.

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Appendix B. Israel and FY2023 Legislation
The following tables (Table 1 and Table 2) delineate all U.S. foreign aid authorized and
appropriated by Congress for Israel for fiscal year (FY) 2023. They include U.S. foreign military
aid and funding for joint missile defense pledged to Israel as part of the ongoing 10-year, $38
billion Memorandum of Understanding (MOU) on military aid, covering FY2019 to FY2028.
Under the terms of the MOU, successive administrations have requested from Congress $3.3
billion
in Foreign Military Financing (FMF) per year for Israel and $500 million in joint missile
defense programs ($3.8 billion total). MOU-related authorizations (missile defense only235) and
appropriations totaling $3.8 billion are in italics within each cell. Items relating to U.S. funding
for joint defense and nondefense cooperative programs, but that fall outside the MOU, are not in
italics.
Overall, Congress specifically authorized $520 million for joint U.S.-Israel defense programs in
the FY2023 NDAA. Per the terms of the MOU, Congress appropriated $3.8 billion for Israel in
the FY2023 Consolidated Appropriations Act, and added $98.58 million in funding for other
cooperative defense and nondefense programs.
Table B-1. Authorized Aid for Israel in P.L. 117-263, the James M. Inhofe National
Defense Authorization Act (NDAA) for Fiscal Year 2023
Authorization
Section Title
Description
Amount
Section 1277 -
Modifies the authorization for the U.S.-Israeli Counter
n/a
Modification and
Unmanned Aerial Systems (C-UAS) program to include
extension of United
“directed energy capabilities.” Raises the cap on annual U.S.
States-Israel cooperation contributions to the program from $25 to $40 mil ion.
to counter unmanned
Extends the program’s authorization through calendar year
aerial systems
2026.
Section 1659 - Iron Dome
Authorizes “not more than” $80 million for Israel to procure
$80 million
short-range rocket defense
components for the Iron Dome Short-Range Rocket Defense
system and Israeli
System through co-production in the United States. Prior to the
cooperative missile defense initial obligation of funds, the Under Secretary of Defense for
program co-development

Acquisition and Sustainment must make various certifications that,
and co-production
among other things, the United States and Israel are adhering to
bilateral agreements on Iron Dome
.

Authorizes “not more than” $40 million for Israel to procure
$40 million
components for the David’s Sling Weapon System through co-
production in the United States. The Under Secretary of Defense for
Acquisition and Sustainment must certify that Israel has
demonstrated successful completion of various knowledge points in
its co-production agreement with the United States.


Authorizes “not more than” $80 million for Israel to procure
$80 million
components for the Arrow 3 Upper Tier Interceptor Program
through co-production in the United States. The Under Secretary of
Defense for Acquisition and Sustainment must certify that, among
other things, Israel has demonstrated successful completion of
various knowledge points in its co-production agreement with the
United States.


235 Congress authorized FY2023 FMF for Israel in P.L.116-283, the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021.
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Authorization
Section Title
Description
Amount
Section 4201 - Research,
Authorizes funds from the Combating Terrorism Technology
$20 mil ion
Development, Test, and
Support account for U.S.-Israeli C-UAS cooperation,
Evaluation
specifically for Joint Laser development ($15 mil ion). The
authorization also includes cooperation on developing Vertical
Take-off and Landing (VTOL) loitering munitions ($5 mil ion).

Authorizes $300 of the remaining $500 million in MOU-pledged
$300 million
joint missile defense programs for U.S.-Israeli cooperation.
Section 5599D - Sense
Among other things, states that “It is essential to the strategic
n/a
Of Congress Regarding
interest of the United States to continue to offer security
Israel
assistance and related support to Israel; and such assistance
and support is especial y vital as Israel confronts a number of
potential challenges at the present time, including continuing
threats from Iran.”
Source: Congress.gov.
Note: Italics indicates amounts in line with the US-Israel MOU on assistance.
Table B-2. Appropriated Aid to Israel in P.L. 117-328, the
Consolidated Appropriations Act, 2023
Bill Text, House
Report Language, or
Joint Explanatory
Appropriations
Statement (JES)
Section Title
Description
Amount
Bill Text
Division C - Department of
Provides $500 million for
$500 million
Defense Appropriations Act,
U.S.-Israeli cooperative
2023, Section 8073
missile defense programs,
including: $80 million for
the Iron Dome, $167
million for David’s Sling,
$80 million for Arrow III,
and $173 million for the
Arrow System Improvement
Program.

Bil Text
Division K - Department
Provides $5 mil ion in
$5 mil ion
of State, Foreign
grants from the State
Operations, and Related
Department's Migration
Programs Appropriations
and Refugee Assistance
Act, 2023, Migration and
account (MRA) to assist
Refugee Assistance
in the resettlement of
migrants to Israel.
Bil Text
Division K - Department
Extends the authorization
n/a
of State, Foreign
of loan guarantees to
Operations, and Related
Israel through FY2028.
Programs Appropriations
Act, 2023, Special
Provisions, Section 7034
(k)(6)
Bill Text
Division K - Department of
Provides “not less than”
$3.3 billion
State, Foreign Operations,
$3.3 billion in FMF grants
and Related Programs
for Israel. These funds must
Appropriations Act, 2023,
be disbursed within 30 days
after the bill’s enactment.

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Bill Text, House
Report Language, or
Joint Explanatory
Appropriations
Statement (JES)
Section Title
Description
Amount
Middle East and North
Of the $3.3 billion, $775.3
Africa, Section 7041(d)
million is for use in Israel,
also known as off-shore
procurement (OSP).

JES
Division C - Department
Provides $72.5 mil ion for
$72.5 mil ion
of Defense
multiple U.S.-Israeli
Appropriations Act, 2023, cooperative defense
Research, Development,
programs, including anti-
Test and Evaluation,
tunneling ($47.5 mil ion)
Defense-Wide
and C-UAS ($25 mil ion).
House Report Language
Committee Provisions
Report language for
$2 mil ion
(House Report 117-392
Division A, FY2023
accompanying H.R.8239,
Agricultural
the Agriculture, Rural
Appropriations, states
Development, Food and
that “Unless otherwise
Drug Administration, and
noted, the language set
Related Agencies
forth in House Report
Appropriations Bil , 2023)
117-392 carries the same
weight as language
included in this joint
explanatory statement
and should be complied
with unless specifically
addressed to the contrary
in this joint explanatory
statement.”

In House Report 117-392,
appropriators provided a
$1 mil ion increase to the
U.S.-Israeli Binational
Agricultural Research and
Development (BARD)
Foundation to support
BARD’s “historical grant-
making functions and
expand programming for
food and nutrition,
technology acceleration,
and artificial intelligence.”
This increase raised the
annual U.S. contribution
to BARD to $2 mil ion.
JES
Division D - Energy and
Provides $2 mil ion for
$6 mil ion
Water Development and
the Israel Binational
Related Agencies
Industrial Research and
Appropriations Act, 2023
Development (BIRD)
Foundation and $4 mil ion
to continue the U.S. Israel
Center of Excellence in
Energy Engineering and
Water Technology.
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Bill Text, House
Report Language, or
Joint Explanatory
Appropriations
Statement (JES)
Section Title
Description
Amount
JES
Division F - Department
Provides $6 mil ion for
$6 mil ion
of Homeland Security
U.S.-Israel Cybersecurity
Appropriations Act, 2023
Cooperation grant
program.
JES
Division H - Departments
Provides $3.08 mil ion for
$3.08 mil ion
of Labor, Health and
a bilateral cooperative
Human Services, and
program with Israel for
Education, and Related
the development of health
Agencies Appropriations
technologies (to fight
Act, 2023
COVID-19).
House Report Language
Middle East and North
Report language for
$2 mil ion
(House Report 117-401
Africa
Division K, FY2023
accompanying H.R.8282,
Department of State,
the Department of State,
Foreign Operations, and
Foreign Operations, and
Related Programs
Related Programs
Appropriations, states
Appropriations Bil , 2023)
that “In implementing this
agreement, Federal
departments, agencies,
commissions, and other
entities are directed to
comply with the
directives, reporting
requirements, and
instructions contained in
the H. Rept. 117-401
(House report)
accompanying H.R. 8282
(House bil ) as though
stated in this explanatory
statement, unless
specifically directed to the
contrary.”

In House Report 117-401,
appropriators provided
$2 mil ion for the U.S.
Agency for International
Development-Israel
international development
cooperation program to
respond to challenges
relating to water scarcity,
agriculture, and energy
storage.
House Report Language
Research, Development,
Report language for
$2 mil ion
(House Report 117-396,
and Innovation
Division F, FY2023
accompanying H.R.8257,
Department of Homeland
the Department of
Security Appropriations,
Homeland Security
states that “Unless
Appropriations Bil , 2023)
otherwise specifically
noted in this JES [Joint
Explanatory Statement],
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Bill Text, House
Report Language, or
Joint Explanatory
Appropriations
Statement (JES)
Section Title
Description
Amount
directives set forth in
House Report 117-396
carry the same weight as
those included in the JES.”
In House Report 117-396,
appropriators provided
$2 mil ion for the BIRD
Homeland Security (BIRD
HLS) Program.
Sources: Congress.gov, Senate Appropriations Committee.
Note: Italics indicates amounts in line with the US-Israel MOU on assistance.
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Appendix C. Common Acronyms and Abbreviations
used in this Report

AECA
Arms Export Control Act
DOD
Department of Defense
DSCA
Defense Security Cooperation Agency
ESF
Economic Support Fund
FAA
Foreign Assistance Act
FMF
Foreign Military Financing
FMS
Foreign Military Sale
HFAC
House Foreign Affairs Committee
IDF
Israel Defense Forces
LOA
Letter of Offer and Acceptance
MOU
Memorandum of Understanding
MRA
Migration and Refugee Assistance
NDAA
National Defense Authorization Act
OSP
Off-Shore Procurement
QME
Qualitative Military Edge
SFOPS
Department of State, Foreign Operations, and Related Programs
SFRC
Senate Foreign Relations Committee
UAE
United Arab Emirates
USAID
U.S. Agency for International Development
WRSA
War Reserves Stock Allies



Author Information

Jeremy M. Sharp

Specialist in Middle Eastern Affairs

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Congressional Research Service
RL33222 · VERSION 45 · UPDATED
54
interceptors within Israel. Rafael claims that its Iron Dome systems have made over 5,000 successful interceptions with a reported mission record success rate of over 90%.198

U.S. Marines Testing Iron Dome Components

As the U.S. Marines prepare to field a new missile defense capability, known as the Medium-Range Intercept Capability, or MRIC, the Corps has integrated elements of Iron Dome into the MRIC and testing is ongoing.199 According to one report, the Marine Corps purchased 80 Tamir Interceptors from Israel in FY2024 with plans to purchase an additional 240 additional interceptors from a new production line in East Camden, Arkansas200, by RTX and Rafael.201 Several years ago, the U.S. Army procured two Iron Dome batteries from Rafael at a cost of $373 million. In 2023, those batteries were leased back to Israel.

David's Sling

David's Sling is a short/medium-range system designed to counter long-range rockets and slower-flying cruise missiles fired at ranges from 25 to 186 miles, such as those possessed by Iran and Hezbollah in Lebanon. In August 2008, Israel and the United States officially signed a "project agreement" to co-develop the David's Sling system.202 David's Sling is designed to intercept missiles with ranges and trajectories for which Iron Dome and/or Arrow interceptors are not optimally configured. It has been developed jointly by Rafael Advanced Defense Systems and RTX.203 David's Sling uses RTX's Stunner missile for interception, and each launcher can hold up to 12 missiles. Unlike Iron Dome, the Stunner missile is a "hit-to-kill" interceptor with more maneuverability and a much higher per unit cost.204 In April 2017, Israel declared David's Sling operational.

Since FY2006, the United States has contributed over $3.8 billion to the development of David's Sling (see Table 5). In June 2018, the United States and Israel signed a co-production agreement for the joint manufacture of the Stunner interceptor. Some interceptor components are built in Tucson, Arizona, by RTX.

The Arrow and Arrow II

Under a 1986 agreement allowing Israel to participate in the Strategic Defense Initiative (SDI), the United States and Israel have co-developed different versions of the Arrow anti-ballistic missile, and, since 1988, have engaged in joint development.205 The Arrow is designed to counter short-range ballistic missiles. The United States has funded just under half of the annual costs of the development of the Arrow Weapon System, with Israel supplying the remainder. The total U.S. financial contribution (for all Arrow systems) has exceeded $4.7 billion (see Table 4). The system became operational in 2000 in Israel and has been tested successfully. The Arrow II program (officially referred to as the Arrow System Improvement Program or ASIP), a joint effort of Boeing and IAI, is designed to defeat longer-range ballistic missiles in the upper atmosphere.

High Altitude Missile Defense System (Arrow III)

Citing a potential nuclear threat from Iran, Israel has sought a missile interceptor that operates at a higher altitude and greater range than the original Arrow systems. In October 2007, the United States and Israel agreed to establish a committee to evaluate Israel's proposed "Arrow III," an upper-tier system designed to intercept medium-range ballistic missiles outside the atmosphere. The Arrow III is a more advanced version—in terms of speed, range and altitude—of the current Arrow II interceptor. In 2008, Israel decided to begin development of the Arrow III and the United States agreed to co-fund its development despite an initial proposal by Lockheed Martin and the DOD urging Israel to purchase the Terminal High-Altitude Area Defense (THAAD) missile defense system instead.206

The Arrow III, made (like the Arrow II) by IAI and Boeing, has been operational since January 2017. The United States and Israel signed an Arrow III co-production agreement in June 2019; their co-production of Arrow III components is ongoing.207 A U.S.-based subsidiary of IAI, Stark Aerospace Inc. based in Columbus, Mississippi, is producing canisters for the Arrow III system. Since co-development began in 2008, Congress has appropriated $1.5 billion for Arrow III (see Table 5).

Table 4. U.S. Contributions to the Arrow Program (Arrow, Arrow II, and Arrow III)

current U.S. dollars in millions

Fiscal Year

Total

Fiscal Year

Total

Fiscal Year

Total

1990

52.000

2004

144.803

2018

392.300

1991

42.000

2005

155.290

2019

243.000

1992

54.400

2006

122.866

2020

214.000

1993

57.776

2007

117.494

2021

250.000

1994

56.424

2008

118.572

2022

235.000

1995

47.400

2009

104.342

2023

253.000

1996

59.352

2010

122.342

2024

253.000

1997

35.000

2011

125.393

2025

253.000

1998

98.874

2012

125.175

1999

46.924

2013

115.500

2000

81.650

2014

119.070

2001

95.214

2015

130.908

2002

131.700

2016

146.069

2003

135.749

2017

272.224

Total

4,754.811

Source: U.S. Missile Defense Agency.

Iron Beam

In 2014, Rafael Advanced Defense Systems announced that the company was developing a mobile, ground-based high energy laser (HEL) interception system. After eight years of development, Israel publicly demonstrated the capabilities of Iron Beam in 2022. Iron Beam first tracks an incoming rocket, artillery, or mortar (RAM) or unmanned aerial vehicle (UAV), then fires two electrically sourced high energy lasers at the target, destroying it at a range of up to 2.7 miles away.208 If successfully tested and operational, Iron Beam could significantly enhance Israel's national counter-RAM and counter-drone defenses. Each use of the Iron Beam would cost between two and four dollars, compared to tens of thousands of dollars to manufacture a conventional interceptor.209 However, HEL interception systems are intended to complement, rather than substitute for, Israel's current multi-layered defense system. It is difficult for laser systems to operate in inclement weather and their range is typically shorter than existing kinetic systems, like Iron Dome. In addition, if Israel faced a barrage of RAMs or a swarm of drones, it would require a number of HEL batteries to protect its homeland.210

In December 2022, Lockheed Martin and Rafael signed a teaming agreement to jointly develop and manufacture a HEL system based on "the assets that have been developed independently by Rafael and the Ministry of Defense's Directorate of Defense Research and Development (DDR&D) within the framework of the IRON BEAM project."211

As previously mentioned, Congress first appropriated funding for Iron Beam in P.L. 118-50, Division A - Israel Security Supplemental Appropriations Act, FY2024. On October 21, 2024, the United States and Israel completed an "exchange of letters" outlining how U.S. supplemental aid for missile defense and Iron Beam will be allocated.212 Israeli defense contractor Elbit Systems has joined Rafael as a co-developer of Iron Beam, which is set to be deployed in 2025.

Table 5. Defense Budget Appropriations for U.S.-Israeli Missile Defense:FY2006-FY2023

current U.S. dollars in millions

Fiscal Year

Arrow II

Arrow III (High Altitude)

David's Sling (Short-Range)

Iron Dome

Iron Beam

Total

FY2006

122.866

10.0

132.866

FY2007

117.494

20.4

137.894

FY2008

98.572

20.0

37.0

155.572

FY2009

74.342

30.0

72.895

177.237

FY2010

72.306

50.036

80.092

202.434

FY2011

66.427

58.966

84.722

205.000

415.115

FY2012

58.955

66.220

110.525

70.000a

305.700

FY2013 After Sequestration

40.800

74.700

137.500

194.000

447.000

FY2014

44.363

74.707

149.712

460.309 (includes supp)

729.091

FY2015

56.201

74.707

137.934

350.972

619.814

FY2016

56.519

89.550

286.526

55.000

487.595

FY2017

67.331

204.893

266.511

62.000

600.735

FY2018

82.300

310.000

221.500

92.000

705.800

FY2019

163.000

80.000

187.000

70.000

500.000

FY2020

159.000

55.000

191.000

95.000

500.000

FY2021

173.000

77.000

177.000

73.000

500.000

FY2022

173.000

62.000

157.000

1,108.000b

1,500.000

FY2023

173.000

80.000

167.000

80.000

500.000

FY2024

173.000

80.000

167.000

80.000

500.000

FY2024 (Supp)

-

-

1,000.000

3,000.000

1,200.000

5,200.000

FY2025

173.000

80.000

167.000

80.000

-

500.000

Total

2,145.476

1,567.779

3,828.317

6,075.281

1,200.000

14,816.853

Source: http://www.congress.gov.

Notes:

a. These funds were not appropriated by Congress but reprogrammed by the Obama Administration from other Department of Defense accounts.

b. P.L. 117-103, the FY2022 Consolidated Appropriations Act provided $108 million in Iron Dome appropriations from the Defense Department's Procurement, Defense-Wide and Research, Development, Test and Evaluation Defense-Wide accounts. Section 8142 of the act also provided $1 billion in supplemental aid for Iron Dome for FY2022-FY2024.

U.S.-Israeli Missile Defense Cooperation During Wartime: 2023-2025

Amongst the many coordinated tactics Hamas terrorists employed in attacking Israel on October 7, 2023 was its barrage of rocket fire into Israel; the IDF estimated that during the first few hours of the attacks, an estimated 2,500 to 3,000 rockets were fired from the Gaza Strip.213 An estimated 18 civilians were killed from rocket fire from Gaza on October 7 and the ensuing days,214 and there was extensive infrastructure damage in southern Israel.215 Though Iron Dome batteries actively intercepted many incoming rockets, the quantity of incoming projectiles may have temporarily overwhelmed Israeli defenses. Days later, IDF officials refused to provide interception performance figures, as many Israeli officials cautioned about divulging sensitive information to Israel's enemies.216 Israel may further investigate its standing missile defense architecture if/when Israel officially forms a state commission of inquiry on the intelligence failures of October 7.

In the weeks and months following the attacks of October 7 and the ensuing war in Gaza, Israel faced incoming projectiles fired from Iran, Syria, Lebanon, Iraq, Gaza, and Yemen. Never before had Israel faced incoming fire from so many fronts and from so many different threat elements, ranging from long-range ballistic missiles to low-flying high-speed unmanned aerial vehicles designed to evade radar detection. All told, various monitoring organizations estimate that between October 7, 2023 and January 19, 2025 (the start of a Gaza ceasefire that lasted until March), Israel faced somewhere between 27,000 and 34,000 incoming projectiles (e.g., rockets, drone, ballistic missiles).217 Some attacks against Israel came on a daily or near-daily basis (Hezbollah), and others came in episodic and/or coordinated waves (e.g., Iran's April and October 2024 attacks).

Figure 13. Israel Launches Arrow Interceptor

November 2023

Source: Israeli Ministry of Defense.

Throughout the conflict, Israel's multi-layered system of defenses, Iron Dome (short range), David's Sling (low to mid-range), Arrow II (upper-atmospheric), and Arrow III (exo-atmospheric), was successfully used on multiple occasions to defend Israel's civilian population and military installations.218 According to accounts, no Israeli died during Iran's two missile/drone barrages in 2024. No Israeli died from any Houthi missile attack against Israel, and one Israeli died from a Houthi drone attack against Tel Aviv in July 2024. In April 2024, a seven-year-old Israeli Bedouin girl was injured by falling shrapnel. In October 2024, a Palestinian in the West Bank died from falling shrapnel.

The United States (along with some European and Arab partners) also played a significant role in defending Israel and commercial Red Sea shipping by deploying various assets to Israel and the Middle East region. Between 2023 and 2025, U.S. guided missile cruisers fired standard missiles at Houthi projectiles and incoming Iranian ballistic missiles headed toward Israel.219 In October 2024, the United States deployed a Terminal High Altitude Area Defense battery (along with nearly 100 U.S. personnel) to Israel to augment Israel's multi-layered missile defense. Five years earlier, U.S. and Israeli forces had reportedly tested THAAD and Israeli systems together to enhance integration and interoperability.220 According to one late 2024 analysis by the New York Times, "When combined with U.S. antimissile systems in the region [THAAD, Patriot], Israel currently has the most layers of missile defense in the world."221 According to testimony from Lieutenant General Heath A. Collins, the Director of the U.S. Missile Defense Agency, "Israeli missile defenses and the U.S. Missile Defense System demonstrated combat-proven interoperability by detecting, tracking, and engaging the most complex, dense, and stressing ballistic missile attacks in history, saving countless Israeli and American lives."222

While Israeli officials credit U.S.-Israeli co-produced systems for saving many lives in conflict against Hamas, Hezbollah, Iran, and the Houthis,223 they also acknowledge that no missile defense system can 100% accurately defend against all threats. At times, human operators must make split-second decisions over the choice to intercept,224 and adversaries adapt to changing circumstances. At times between 2023 and 2025, Israel's adversaries managed to penetrate its multi-layered defense system. According to one report, after Iranian-supplied drones repeatedly failed to penetrate Israeli air space, the Houthis altered their approach routes into southern Israel.225 In its conflict with Israel, Iran has demonstrated more sophisticated capabilities, such as ballistic missiles that not only can reach Israel in 12 minutes, but can reportedly evade interceptors through post-reentry maneuvering.226 Iran's October 2024 attack against Israel consisted of an estimated 180 ballistic missiles fired, some of which landed in areas around Israeli military bases.227 Iran's October barrage featured more ballistic missiles than its April attacks, and, unlike in April, Iran reportedly did not warn the United States in advance.

Between 2023 and 2024, Hezbollah inflicted damage against northern Israel; Israeli civilian evacuations of the north may have reduced casualties. During Israel's Operation Northern Arrows against Hezbollah in fall 2024, one research center estimates that Hezbollah launched approximately 16,000 munitions into Israel (rockets, drones, and anti-tank missiles); approximately 1,000 munitions hit, killing 77 Israelis (47 civilians and 30 soldiers) and wounding several thousand people.228 While Israeli systems performed well against Hezbollah's rockets and missiles, Hezbollah's low-flying, high speed drones and anti-tank missiles caused casualties.

As U.S. and Israeli policymakers review joint missile defense projects in light of the 2023-2025 conflicts, some observers have advocated for further investigation of what informally has been referred to as "missile economics" (i.e., the per interception costs incurred by the target nation and the costs to retain sufficient stockpiles of interceptors in a prolonged conflict).229 While there are no official estimates of Israeli per unit interceptor costs, certain systems, such as the Arrow 3, have interceptors that cost millions of dollars to produce.230 According to one former Israeli general, Iran's April 2024 attack against Israel cost Israel, the United States, and its allies an estimated $1.1 billion to defend against when accounting for all the interceptors and combat aircraft used in the operation.231According to one analysis by the Swiss newspaper NZZ, throughout the war, Israel has been "paying a lot for its missile shield – at least in the single-digit billions of dollars."232 Since the United States provides significant missile defense funding for Israel, the strain on Israel's defense budget is somewhat softened. According to one Israeli observer, "When it comes to air defense, without American funding, it would be a heavy burden on the defense budget."233

Emergency U.S. Stockpile in Israel

The War Reserve Stocks for Allies-Israel (WRSA–I, also referred to as the War Reserve Stockpile for Allies-Israel) is a Defense Department program, whereby various branches of the U.S. military pre-position stockpiles of U.S. defense equipment inside Israel intended for Israel's use during wartime. WRSA-I is a U.S.-owned, Israeli-maintained arms depot, which both countries can use; in Israel's case, the presence of U.S. equipment in-country can obviate the need for a quick U.S. resupply of certain defense items in emergency circumstances. Congress has authorized Israel's use of the stockpile in statute and sets annual caps on the amounts of U.S. materiel that may be added to WRSA-I (see below).

Background

In the early 1980s, Israeli leaders sought to expand what they called their "strategic collaboration" with the U.S. military by inviting the United States to stockpile arms and equipment at Israeli bases for American use in wartime.234 Beginning in 1984, the United States began to stockpile military equipment in Israel, but only "single-use" armaments that could not be used by the IDF.235 In 1989, the George H. W. Bush Administration altered the terms of the stockpile to provide Israel access to it in emergency situations.236 At the time, the United States was attempting to sell Saudi Arabia M1A1 tanks, and U.S. officials were seeking Israel's acquiescence to the deal.

Since 1989, there have been several instances in which Israel or the United States have accessed the stockpile, including the following:

  • During the summer 2006 war between Israel and Hezbollah, Israel requested that the United States expedite the delivery of precision-guided munitions to Israel. The George W. Bush Administration did not use the emergency authority codified in the AECA, but rather allowed Israel to access the WRSA-I stockpile.
  • In July 2014, during Israeli military operations against Hamas in the Gaza Strip, the Defense Department permitted Israel to draw from the stockpile, paid with FMF, to replenish 120-mm tank rounds and 40-mm illumination rounds fired from grenade launchers.237
  • In 2022 and 2023, the United States reportedly withdrew 300,000 155-millimeter artillery shells from WRSA-I (and additional materiel from the U.S. stockpile in South Korea) to send to Ukraine.238 According to multiple reports, Israeli officials acceded to the Pentagon's request in order to avoid confrontation with the United States and because, according to one Israeli official, "it's their ammunition and they don't really need our permission to take it."239 In January 2025, the United States again accessed WRSA-I and sent 90 Patriot air defense interceptors from Israel to Ukraine after Israel decommissioned its Patriot air defense batteries.240
  • In December 2023, the Biden Administration notified Congress of proposed sales to Israel of tank cartridges ($106.5 million on December 8) and artillery shells ($147.5 million on December 29). In both instances, the Administration said it was invoking emergency authorities codified in the Arms Export Control Act (22 U.S.C. 2776) that allow the President to waive congressional review of an arms sale if the President states in a formal notification to Congress that "an emergency exists" requiring an immediate sale "in the national security interests of the United States."241 According to the Department of Defense, both sales came from WRSA-I. At the time, several Members of Congress objected to the Administration's use of emergency authority to bypass congressional review.242
Legal Authority and Legislative History In 1984, Congress amended the Foreign Assistance of 1961 by adding Section 514 of the FAA of 1961 (22 U.S.C. §2321h), a global authority that allows U.S. defense articles stored in war reserve stocks to be transferred to a foreign government through FMS or through grant military assistance, such as FMF. Congress limited the value of assets transferred into WRSA stockpiles in any fiscal year through authorizing legislation (see below). The United States retains title to the WRSA stocks, and title must be transferred before the foreign country may use them.

WRSA-I and Congressional Notification

Section 12001 of P.L. 108-287, the Department of Defense Appropriations Act, 2005, required that Congress be notified in advance of a transfer. However, since withdrawals from the stockpile to Israel could have been done under emergency circumstances, a degree of incongruity developed between the notification procedures in the law and how the stockpile worked in practice. According to one report, decades ago, a U.S. defense official developed a mechanism for "for shipping U.S. weapons from Israel to Israel—without the need for a cumbersome, politically fraught signoff from the White House."243 One former U.S. government official, who has criticized U.S. security assistance to Israel, characterized the process of building an FMS case for a stockpile withdrawal as something that was done "retroactively."244 During the war in Gaza, the Biden Administration attempted to resolve this incongruity both by using emergency authorities in the AECA, and by proposing changes to the law in its supplemental request to Congress. Congress ultimately adopted these changes in P.L. 118-50. Section 305 of that act amends Section 12001 of P.L. 108-287 to, among other things, allow the President to notify Congress "as far in advance of such transfer as is practicable as determined by the President on a case-by-case basis during extraordinary circumstances impacting the national security of the United States."

Twenty years later, during the second Iraq War, Congress began considering provisions to amend Section 514 in foreign assistance authorization legislation and create an Israel-specific WRSA authority.245 Congress later enacted a new WRSA-I transfer authority in Section 12001 of P.L.108-287, the Department of Defense Appropriations Act, 2005. That authority stated that "notwithstanding" Section 514 of the FAA, the President may transfer to Israel, "in exchange for concessions to be negotiated," (e.g., possibly cash or other fair market value services) obsolete or surplus items from the inventory of the Department of Defense, such as armor, artillery, automatic weapons ammunition, and missiles, which are located in a stockpile in Israel. This authority also required that "Not later than 30 days before making a transfer under the authority of this section, the President shall transmit a notification of the proposed transfer" to congressional committees of jurisdiction.

Congress also has amended the WRSA-I authorization to allow the President to store more precision-guided munitions in Israel.246 The contents of WRSA-I are not publicly available,247 though for years, various reports have suggested that the types of munitions stored inside WRSA-I were unguided.248 Section 1275 of P.L. 116-283, the 2021 NDAA, amended Section 514 of the FAA (for a three-year period only) to enable the President to transfer PGMs to Israel without regard to annual limits on their value once they were stored in Israel, provided that such a transfer, among other things, does not harm the U.S. supply of PGMs and the combat readiness of the United States. This provision required the President to certify to Congress that any transfer meets these statutory conditions. It also required another assessment of the quantity and type of PGMs necessary for Israel in the event of a prolonged war.

Before this provision expired, Congress reauthorized it through January 1, 2027 in P.L.118-31, the National Defense Authorization Act for Fiscal Year 2024. That act eliminated previous assessment and reporting requirements and replaced them with an annual Defense Department assessment of the "current quantity and type of precision-guided munitions in the stockpile" and a report to Congress detailing actions being taken by the United States to ensure that WRSA-I has "sufficient quantities and types of munitions, including precision-guided munitions, to conduct the operations."

For decades, Congress has reauthorized WRSA-I in either annual appropriations legislation or national defense authorization acts—or both. P.L.118-31, the National Defense Authorization Act for Fiscal Year 2024, has reauthorized WRSA-I until January 1, 2027.

Congress also has enacted provisions, in appropriations legislation, authorizing the U.S. military to increase the value of materiel stored in Israel. According to DSCA, "no new procurements are involved in establishing and maintaining these stockpiles. Rather, the defense articles used to establish a stockpile and the annual authorized additions represent defense articles that are already within the stocks of the U.S. armed forces. The stockpile authorizing legislation simply identifies a level of value for which a stockpile may be established or increased."249 In statute, there are two authorities capping annual U.S. contributions to stockpiles, an Israel-specific cap ($200 million annually) and a global one ($500 million annually).250 Section 306 of P.L.118-50, the FY2024 Emergency Supplemental Act, eliminated the annual cap on U.S. additions to WRSA-I for FY2024.

Until 2021, the United States European Command (EUCOM) managed the WRSA-I program; in January 2021, President Trump directed that Israel be transferred from the area of responsibility (AOR) of EUCOM to that of CENTCOM. CENTCOM formalized that move in September 2021. Since the transfer, CENTCOM has managed WRSA-I.251 In June 2024, the Defense Department's Office of Inspector General announced its intention to assess the effectiveness of CENTCOM's accountability controls over WRSA-I.252

Defense Budget Appropriations for Anti-Tunnel Defense In 2016, the Israeli and U.S. governments began collaborating on a system to detect underground smuggling tunnels and to counter cross-border tunnels used to infiltrate Israel. Section 1279 of P.L. 114-92, the FY2016 National Defense Authorization Act, authorized the establishment of a U.S.-Israeli anti-tunnel cooperation program.253 This authorization allowed funds from the research, development, test, and evaluation defense-wide account to be used (in combination with Israeli funds) to establish anti-tunnel capabilities that "detect, map, and neutralize" underground tunnels that threaten the United States or Israel (Congress later amended the authorization by adding "maneuver in"). The authorization requires the Secretary of Defense to report to Congress on, among other things, the sharing of research and development costs between the United States and Israel. P.L.118-31, the FY2024 National Defense Authorization Act, reauthorized the anti-tunnel program through 2026. The FY2025 National Defense Authorization Act raised the program's annual funding cap from $50 million to $80 million, though average annual appropriations have been below these amounts (see Table 6).254 Table 6. U.S.-Israeli Anti-Tunnel Cooperation

current U.S. dollars in millions

Fiscal Year

Appropriation

FY2016

40.0

FY2017

42.5

FY2018

47.5

FY2019

47.5

FY2020

-

FY2021

47.5

FY2022

47.5

FY2023

47.5

FY2024

47.5

FY2025

47.5

Total

415.0

Source: Joint Explanatory Statements accompanying Consolidated Appropriations Acts for FY2016-FY2024. See – "Combatting Terrorism Technology Support" in Defense Explanatory Statement. For FY2025, see U.S. Department of Defense, DD14, Base for Reprogramming Actions, April 18, 2025.

Within the Department of Defense, the Irregular Warfare Technical Support Directorate (IWTSD) manages the counter-tunnel program with Israel (IWTSD also conducts joint research and development defense programs with Australia, Canada, Singapore, and the United Kingdom). Though there is little public information about specific technologies in development, one budget report notes that the United States and Israel plan on creating a "testing and training fixture that will closely replicate subterranean and hard and deeply buried targets in threat countries to allow for Units of Action to research and develop technological solutions."255

Israel's tactics in counter-tunnel warfare continue to evolve as its adversaries have become more adept in constructing underground military facilities. Ironically, Israeli counter-tunnel measures taken with regard to Gaza-Israel cross-border tunnels in previous years may have led the October 7, 2023 attackers to focus mainly on above-ground incursions into Israeli territory.256 Since October 7, Hamas's use of previously undetected tunnels have illustrated the difficulty the Israel Defense Forces (IDF) have encountered in detecting and neutralizing Hamas's vast subterranean network, colloquially referred to as the "Gaza metro." According to one former senior Israeli official, the depth of Hamas's tunnels initially surprised many Israelis, as Israel's Ground Penetration Radar could only detect major tunnels 50 to 65 feet below ground; the deepest Hamas tunnels were 230 feet below ground.257 During the war, there has been no public reporting on whether co-developed U.S.-Israel systems have been used in tunnel detection and demolition. Multiple reports describe Israeli combat engineer units, such as Yahalom, using drones, robots, and dogs for tunnel detection.258

Defense Budget Appropriations for Countering Unmanned Aerial Systems (C-UAS) and Supporting Directed Energy Capabilities

As UAV technology has proliferated across the Middle East, Israel has sought U.S. assistance in countering various systems used by state and non-state actors. In an effort to counter unmanned drones, states are researching various methods to detect incoming unmanned aircraft (using radio or optical sensors) and then either disabling, destroying, or seizing them by jamming their communications, intercepting their flight paths, or hacking their electronic systems.259 Several Israeli companies have counter-drone solutions in development, including Drone Dome (Rafael), ReDrone (Elbit Systems), and Drone Guard (IAI). According to one unnamed executive at IAI, "Drone defense is an expensive business as countries have a large number of facilities to protect.... It's a crazy arms race because the technological possibilities for drone use continue to increase."260

Table 7. U.S.-Israeli Anti-Drone Cooperation

current U.S. dollars in millions

Fiscal Year

Appropriation

FY2020

13.0

FY2021

25.0

FY2022

25.0

FY2023

25.0

FY2024

40.0

FY2025

55.0

Total

183.0

Source: Joint Explanatory Statements accompanying Consolidated Appropriations Acts 2020-2024. See "Combatting Terrorism Technology Support" in Defense Explanatory Statement. For FY2025, see U.S. Department of Defense, DD14, Base for Reprogramming Actions, April 18, 2025.

Congress first authorized a cooperative U.S.-Israeli Counter Unmanned Aerial Systems (C-UAS) program by expanding the scope of the anti-tunnel cooperation program for FY2019.261 In the FY2020 NDAA (P.L. 116-92), Congress created a separate authority (Section 1278), which authorized the Secretary of Defense to "carry out research, development, test, and evaluation activities, on a joint basis with Israel, to establish capabilities for countering unmanned aerial systems that threaten the United States or Israel." Section 1278 required a matching contribution from the government of Israel and capped the annual U.S. contribution at $25 million. Congress initially authorized the program through FY2024.

Section 1277 of P.L. 117-263, the James M. Inhofe National Defense Authorization Act for FY2023, modified the authorization for the C-UAS program to include "directed energy capabilities."262 It also raised the cap on annual U.S. contributions to the program from $25 to $40 million and extended the program's authorization through calendar year 2026. P.L.118-31, the National Defense Authorization Act for FY2024, further raised the cap on the C-UAS program from $40 million to $55 million.

Like U.S.-Israeli counter-tunnel cooperation, the IWTSD manages the U.S.-Israeli C-UAS/Directed Energy program. According to IWTSD's contract solicitation documents, "Current C-UAS solutions are air domain centric, and do not address the proliferation of technology extending into the multi-domain arena.... it is imperative to stay ahead of the threat by developing new detection and mitigation technologies and delivering new capabilities to U.S. and Israeli warfighters."263 In 2022, the U.S. Army awarded an Israeli company named Smart Shooter a contract to provide the Army with its Smash 2000L optics for rifles as part of a counter-UAS program.264

IWTSD, with specific guidance and funding from Congress, also has been developing the ROC-X, a hand-launched, vertical takeoff and landing (VTOL), loitering munition that can target transient objects.265 In House Appropriations Committee reports for both FY2024 and FY2025, lawmakers expressed interest in the development of the ROC–X "as it transitions through the operational test and evaluation phase."266 IWTSD awarded IAI the contract to develop the ROC-X. P.L. 117-263, the James M. Inhofe National Defense Authorization Act for FY2023, authorized $5 million for its development.

Aid Restrictions and Possible Violations

U.S. aid and arms sales to Israel, like those to other foreign recipients, are subject to U.S. law. Some U.S. citizens and interest groups have called upon Congress to ensure that U.S. military assistance to Israel complies with applicable U.S. laws and policies, and with international humanitarian law.

Arms Sales and Use of U.S.-Supplied Equipment267

The 1952 Mutual Defense Assistance Agreement and subsequent arms agreements between Israel and the United States limit Israel's use of U.S. military equipment to defensive purposes.268 The AECA (22 U.S.C. §2754) authorizes the sale of U.S. defense articles and services for specific purposes, including "legitimate self-defense."269 The AECA (22 U.S.C. §2753) states that recipients may not use such articles "for purposes other than those for which [they have been] furnished" without prior presidential consent. The AECA also states in 22 U.S.C. §2753 that the consent of the President shall not be required for the transfer by a foreign country or international organization of defense articles sold by the United States, if the recipient of the third-country transfer is the government of a member country of NATO, Australia, Japan, South Korea, Israel, or New Zealand. The act stipulates that sale agreements entered into after November 29, 1999 must grant the U.S. government the right to verify "credible reports" that articles have been used for unauthorized purposes. Neither the AECA nor FAA explicitly requires that recipients of U.S.-origin defense articles follow International Humanitarian Law (IHL).

The AECA requires the President to submit a formal notification of arms sales transactions to Congress before issuing a Letter of Offer and Acceptance for an FMS transfer or an export license for a DCS transfer. The executive branch may not proceed with notified transfers if Congress adopts a joint resolution of disapproval within an AECA-prescribed time period (15 days for Israel). Under the regular legislative process, Congress may act to regulate or prohibit any sale of U.S.-origin defense articles up to the time of delivery to the recipient country.

End-Use Monitoring

It is the statutory responsibility of the Departments of State and Defense, pursuant to the AECA, to conduct end-use monitoring (EUM) to ensure that recipients of U.S. defense articles use such items solely for their intended purposes. The AECA also provides specific authority to the President (through a presidential determination) and Congress (joint resolution) to prohibit the sale or delivery of U.S.-origin defense articles to a recipient country if it has used such articles "for a purpose not authorized" by the AECA or the FAA.270

Human Rights-Related Prohibitions in Legislation Section 502B of the Foreign Assistance Act

The FAA of 1961, as amended, also contains general provisions on the use of U.S.-supplied military equipment.271 Section 502B(a)(2) of the FAA (22 U.S.C. §2304(a)(2)) stipulates that, absent the exercise of certain presidential waivers due to extraordinary circumstances, "no security assistance may be provided to any country the government of which engages in a consistent pattern of gross violations of internationally recognized human rights."272 For the purposes of Section 502B, "security assistance" is defined broadly to include sales of defense articles or services, extensions of credits, and guaranties of loans under the AECA, licenses for exports to foreign government military or security forces, and certain categories of assistance authorized under the FAA. The term "gross violations of internationally recognized human rights" is defined to include 1) "torture or cruel, inhuman, or degrading treatment or punishment"; 2) "prolonged detention without charges and trial"; 3) forced disappearance; and 4) "other flagrant denial of the right to life, liberty, or the security of person." Pursuant to this provision, the executive branch may make a determination that a foreign government has engaged in "a consistent pattern of gross violations of internationally recognized human rights" and is therefore ineligible for security assistance. As a general matter, the executive branch appears to have rarely restricted assistance pursuant to this provision. There is no statutory requirement for the executive branch to notify Congress when it chooses to unilaterally invoke 502B.

Pursuant to Section 502B(c), Congress also may, through a resolution of the House or Senate or by request of the Senate Foreign Relations Committee (SFRC) or House Foreign Affairs Committee (HFAC), require a report within 30 days from the Secretary of State concerning human rights in a specific country, including an assessment of whether extraordinary circumstances exist that necessitate a continuation of security assistance. After receiving such report, Congress, by joint resolution, may act to terminate, restrict, or continue security assistance to such country (See, "Early Congressional Attempts to Condition Aid"). In the Senate, a resolution would be privileged under section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, allowing a Senator to discharge the resolution from the Senate Foreign Relations Committee after 10 days. Human Rights Vetting (Leahy Law)

Section 620M of the FAA of 1961 (codified as 22 U.S.C. §2378d), as amended, prohibits the furnishing of assistance authorized by the FAA and the AECA to any foreign security force unit where there is credible information that the unit has committed a gross violation of human rights. The State Department and U.S. embassies overseas implement Leahy vetting to determine which foreign security individuals and units are eligible to receive U.S. assistance or training. Building on and consistent with provisions contained in FY2020 and FY2021 appropriations laws, Congress in 2022 amended 22 U.S.C. §2378d to address cases in which the specific unit(s) that will ultimately receive assistance cannot be identified prior to the transfer of assistance.273 For such cases, the Secretary of State is to regularly provide the recipient government a list of units that are prohibited from receiving assistance and such assistance "shall only be made available subject to a written agreement that the recipient government will comply with such prohibition." The United States and Israel maintain such an agreement.274

Pursuant to 22 U.S.C. §2378d(d), the Secretary of State is required to establish and maintain certain procedures for collecting, validating, and preserving security assistance recipient and vetting information. The Secretary also is required to publicly identify those foreign security forces units that the department barred from U.S. assistance under the law unless the Secretary, "on a case-by-case basis, determines and reports" to the appropriate committees that public disclosure is not in the U.S. national security interest, and "provides a detailed justification for such determination." The prohibition of assistance to otherwise barred units may be excepted if the Secretary of State determines and reports to Congress that the foreign government "is taking effective steps to bring the responsible members of the security forces unit to justice." See also CRS In Focus IF10575, Global Human Rights: Security Forces Vetting ("Leahy Laws").

Some human rights advocates have argued that the State Department should make greater efforts to comply with the Leahy Law as it pertains to Israel, with some (including then-Senator Patrick Leahy)275 arguing that the department had effectively failed to apply the law.276 Since the October 7, 2023 Hamas-led attacks and the subsequent war in Gaza, some former State Department employees have asserted that the process and standards for determining whether allegations of human rights violations by Israeli units are credible are more onerous than for other recipients of U.S. military assistance.277 In response, then-Secretary of State Blinken denied that the United States had a double standard for Israel.278 Some Israeli officials have claimed that during the Gaza war, the State Department subjected Israel to higher levels of oversight than other aid recipients globally in their respective use of U.S. weapons.279

Allegations of Israeli Abuse of Prisoners and the Leahy Law

Within the IDF, the Military Advocate General Corps is responsible for implementing the rule of law and providing legal advice concerning the Law of Armed Conflict. Since the start of the Gaza war in 2023, the Corps has conducted various investigations of alleged human rights abuses by Israeli soldiers, police, and prison guards. After numerous allegations of abuse of Palestinian prisoners at the Sde Teiman detention facility located in the Negev desert, the State Department and the Corps began investigating Israeli prison guard behavior. According to one report, in 2024, the State Department had assessed that two Israeli military police units (Force 100 and Force 504) had engaged in credible reports of abuse of Palestinian detainees at Sde Teiman, but Secretary of State Blinken never made a determination that either unit would be ineligible for U.S. assistance.280 After months of the Corps' investigating abuse allegations, in February 2025, an Israeli military court convicted an Israeli army reservist of abusing Palestinian security detainees.281 Weeks later, Israeli prosecutors indicted five reserve soldiers for severely abusing a Palestinian detainee at Sde Teiman detention facility.282

To date, there is no public record of the State Department having ever delivered to Israel a list of ineligible Israeli units for assistance; there have been State Department-led determinations of Israeli units committing gross violations of human rights, but these units retained their eligibility for military aid because the Biden Administration determined at the time that, Israel had taken, or was in the process of taking, steps to remediate the units' conduct. Some former State Department officials have argued that the actions taken did not meet the Leahy Law remediation standards as those are applied to other governments.283 The law (22 U.S.C. §2378d(b)) does not further define remediation, but the Departments of State and Defense have produced a joint remediation policy that centers on impartial and thorough investigations; credible judicial or administrative adjudications; and appropriate and proportional sentencing.284 Section 620I of the Foreign Assistance Act

In 1996, Congress amended the Foreign Assistance Act by adding Section 620I (22 U.S.C. §2378-1), which prohibits providing certain assistance to foreign countries that block or impede delivery of U.S. humanitarian assistance.285 The President may waive the prohibition for national security reasons and must report to Congress prior to the use of a waiver. It is unclear how Section 620I determinations are made. The language of the provision appears to provide wide discretion to the executive branch.

During the war in Gaza, the Biden Administration was at times critical of some aspects of Israel's actions, including the October 2024 letter by Secretaries Blinken and Lloyd Austin that, according to an Administration spokesperson, "was simply meant to reiterate the sense of urgency we feel and the seriousness with which we feel it, about the need for an increase, a dramatic increase in humanitarian assistance."286 Some Members of Congress called upon President Biden to enforce Section 620I.287 There is no public record of the Biden Administration having done so.

Use of U.S. Funds Within Israel's Pre-June 1967 Borders In some instances, U.S. assistance to Israel may be used only in areas subject to the administration of Israel prior to June 1967 (see "Loan Guarantees"). For example, State Department-provided Migration and Refugee Assistance (MRA, see "Migration and Refugee Assistance"), per agreement between the State Department and United Israel Appeal, may only be used for absorption centers, ulpanim (intensive Hebrew-language schools, many of which are located at immigrant absorption centers and focus on immigrants to Israel), or youth aliyah (relocation to Israel) institutions located within Israel's pre-June 1967 area of control.288

Over the past five years, geographic restrictions within the rules and policies governing programs funded by the endowments of U.S.-Israeli binational foundations (see "The U.S.-Israeli Binational Foundations (BIRD, BARD, and BSF)" have fluctuated between the Trump and Biden Administrations. From the early 1970s until 2020, according to bilateral agreements between the U.S. and Israeli governments, no program funded by the endowments of U.S.-Israeli binational foundations could be "conducted in geographic areas which came under the administration of the Government of Israel after June 5, 1967."289

In October 2020, the first Trump Administration announced that it had removed geographic restrictions from the founding agreements establishing the three main U.S.-Israeli binational foundations (BIRD, BARD, BSF), thereby permitting Israeli universities in the West Bank to apply for grant funding.290

In June 2023, the State Department, rather than reversing the Trump Administration's 2020 amendments to the binational foundations founding agreements, instead issued guidance to relevant U.S. Government agencies and officials that "it would not be consistent with U.S. foreign policy objectives to support bilateral scientific and technological cooperation with Israel in geographic areas which came under the administration of Israel after June 5, 1967, and which remain subject to final status negotiations between the parties.... This includes bilateral activities of the Binational Science Foundation (BSF), the Binational Industrial Research and Development Foundation (BIRD), and the Binational Agricultural Research and Development Fund (BARD)."291

As of May 2025, the second Trump Administration has not publicly stated its stance on the issue.

Israeli Arms Transfers to Third Parties

Per Section 3(a) of the AECA (22 U.S.C. §2753) and Section 505(e) of the FAA (22 U.S.C. §2314), the U.S. government must review and approve any transfer of U.S.-origin equipment from a recipient to a third party that was not previously authorized in the original acquisition.292 Third Party Transfer (or TPT) is the retransfer of title, physical possession or control of defense articles from the authorized recipient to any person or organization not an employee, officer or agent of that recipient country.293

As previously mentioned, Israel is a major global manufacturer of armaments. It also possesses significant quantities of major U.S.-origin defense equipment stemming from its decades-old security partnership with the United States. In 2023, the United States approved Israel's exports of David's Sling to Finland and Arrow 3 to Germany.

Israel and China

Israel has ended any formal defense and or security ties to China. Two planned Israeli sales to China drew opposition from successive Administrations and from Congress (PHALCON airborne radar systems in 2000 and upgrade of Chinese Harpy Killer drone aircraft in 2004/2005).294 Apparently as a result of U.S. pressure on Israel to cease its long-standing and sometimes clandestine defense relationship with China, Israel created its own arms export control agency, known as the Defense Export Control Agency (DECA – see textbox "Israeli Exports of Spyware"). The United States and Israel signed a 2005 bilateral agreement, known as the "Declaration of Understanding on Technology Exports," whereby both countries pledged to ensure defense export transparency, with the United States pledging not to ban Israel's defense deals on commercial grounds, thus bolstering Israeli competitiveness globally.295

Israel does export weapons and other surveillance systems to some of China's neighbors and rivals.296 According to one report, in March 2025 Israel Aerospace Industries sold Vietnam two spy satellites for $680 million.297

Bilateral Israeli-Chinese non-military commercial trade continues, as does Chinese investment in Israel. According to Israel's Central Bureau of Statistics, from 2021 to 2023, the total volume of bilateral trade between the countries averaged $15.7 billion a year (see Figure 16). After the United States and the European Union (as a whole), China is Israel's third-largest trading partner. Chinese investment in Israel is predominantly in the technology sector, with companies such as Xiaomi, Lenovo, ChemChina, and Alibaba having a presence inside Israel.298As successive Administrations and some Members of Congress have raised concerns about China's expanding global influence, Israeli security agencies, such as the Shin Bet and the National Security Bureau (NSB), have heightened scrutiny of China's investment in Israel. In late 2019, Israel created an advisory panel on foreign investment in Israel.299 However, this panel reportedly does not have the authority to review investments in sectors such as high-tech that accounted for most of China's investments in Israel in the previous decade.300 In 2022, Israel updated the regulations for this panel in an apparent effort to expand the range of reviewable investments, though the panel still does not have authority to review investment in the Israeli high-tech sector.301

Additionally, U.S. officials have discouraged Chinese involvement in specific Israeli infrastructure projects.302 After reported warnings from the first Trump Administration, Israeli officials apparently blocked Chinese companies from working on Israeli communications infrastructure such as 5G.303 In February 2025, one report noted that Israel is investigating the possible participation of China's state-owned CRRC, or China Railway Rolling Stock Corporation, in various light rail project.304

In 2021, after Israel had begun selling its state-owned ports to cut costs and improve vessel wait times, it opened a new terminal in Haifa (Bay Port Haifa) and awarded China's state-owned company the Shanghai International Port Group (SIPG) operation of the seaport for 25 years. China's state-owned presence at the port, where the U.S. 6th Fleet naval ships dock, drew scrutiny from both the Biden and first Trump Administrations.305 Haifa's older port is now run by India's Adani Group in a joint venture with Israel's Gadot Chemical Terminals; a new port terminal in Ashdod is run by a Switzerland-based company. 306

Figure 14. Israel-China Bilateral Trade

(excluding diamonds or HK)

Source: Tomer Fadlon, "Israel – China Trade Slump: Turning Point or Correction?" The Institute for National Strategic Studies (INSS), April 7, 2024.

Other Ongoing Assistance and Cooperative Programs Migration and Refugee Assistance

Since 1973, Israel has received a total of approximately $1.74 billion in grants from the State Department's Migration and Refugee Assistance account (MRA) to assist in the resettlement of migrants to Israel.307 Funds are paid to the United Israel Appeal, a private philanthropic organization in the United States, which in turn transfers the funds to the Jewish Agency for Israel.308 Between 1973 and 1991, the United States provided about $460 million for resettling Jewish refugees in Israel. From 1992 to 1999, after the collapse of the Soviet Union and the resettlement of hundreds of thousands of Jewish immigrants in Israel, MRA grants to Israel increased to almost $80 million per year ($630 million total). Since then, annual grants have decreased based at least in part on the declining number of Jews leaving the former Soviet Union and other areas for Israel (see Table 8). MRA assistance now largely supports Jews who have migrated from Ethiopia.

Table 8. Migration and Refugee Assistance Funding Levels for Israel

current U.S. dollars in millions

Fiscal Year

Total

FY2000-FY2012

$519.3

FY2013

$15.0

FY2014

$15.0

FY2015

$10.0

FY2016

$10.0

FY2017

$7.5

FY2018

$7.5

FY2019

$5.0

FY2020

$5.0

FY2021

$5.0

FY2022

$5.0

FY2023

$5.0

FY2024

$5.0

Total

$614.3

Source: U.S. State Department.

Congress has changed the directive language since the first refugee resettlement funds were appropriated in 1973. At first, the congressional language said the funds were for "resettlement in Israel of refugees from the Union of Soviet Socialist Republics and from Communist countries in Eastern Europe." But starting in 1985, the language was simplified to "refugees resettling in Israel," to ensure that Ethiopian Jews would be covered by the funding. Technically, the legislative language designates funds for refugee resettlement, but in Israel little differentiation is made between Jewish "refugees" and other Jewish immigrants, and the funds are used to support the absorption of all Jewish immigrants.

Loan Guarantees

Since 1972, the United States has extended loan guarantees to Israel to assist with housing shortages, Israel's absorption of new immigrants from the former Soviet Union and Ethiopia, and economic recovery following the 2000-2003 recession, which was probably caused in part by the Israeli-Palestinian conflict known as the second intifada. Loan guarantees are a form of indirect U.S. assistance to Israel; they enable Israel to borrow from commercial sources at lower rates. Israel has never defaulted on a U.S.-backed loan guarantee.

In 2003, then-Prime Minister Ariel Sharon requested an additional $8 billion in loan guarantees to help the Israeli government stimulate Israel's then-ailing economy.309 P.L. 108-11, the FY2003 Emergency Wartime Supplemental Appropriations Act, authorized $9 billion in loan guarantees over three years for Israel's economic recovery and $1 billion in military grants. P.L. 108-11 stated that the proceeds from the loan guarantees could be used only within Israel's pre-June 5, 1967, area of control; that the annual loan guarantees would be reduced by an amount equal to the amount Israel spends on settlements outside of Israel's pre-June 1967 area of control; that Israel would pay all fees and subsidies; and that the President would consider Israel's economic reforms when determining terms and conditions for the loan guarantees.310

On November 26, 2003, the Department of State announced that the $3 billion in loan guarantees for FY2003 were reduced by $289.5 million because Israel continued building settlements in the occupied territories and constructing of a security barrier separating key Israeli and Palestinian population centers.311 In FY2005, the U.S. government reduced the amount available for Israel to borrow by an additional $795.8 million. Since then, Israel has not borrowed any funds.

As of 2025, Israel had issued $4.1 billion in U.S.-backed bonds.312 After deducting the amounts mentioned above, Israel might still be authorized to issue up to $3.814 billion in U.S.-backed bonds. If the Israeli government sought to issue new U.S.-backed bonds, it is unclear whether the loan guarantees available to Israel might be subject to reduction based on Israel's estimated cumulative subsequent expenditures for settlements in the West Bank. The original loan guarantee program authorization for Israel was through FY2005. Since then, Congress has extended the program seven times.313 The program is currently authorized through the end of FY2030.

American Schools and Hospitals Abroad Program (ASHA)

As of May 2025, following Trump Administration steps to reduce the role of the United States Agency for International Development (USAID) in providing foreign assistance and transfer some of the functions assigned to USAID to the Department of State, the status of the American Schools and Hospitals Abroad (ASHA) program is unclear. Due to recent Trump Administration changes to foreign assistance and USAID operations, all active ASHA grants to Israel-based institutions have been terminated, though it is possible they could be reinstated through alternative funding mechanisms.

For decades, the office of American Schools and Hospitals Abroad (ASHA) had been an organizational unit within the USAID that provided grants to schools, libraries, and medical centers that best demonstrate American ideals and practices abroad. ASHA had been providing support to institutions in the Middle East since 1957, and a number of universities and hospitals in Israel have been recipients of ASHA grants. Through appropriations bills, Congress had funded the ASHA program as part of the overall Development Assistance (DA) appropriation to USAID.

Institutions based in Israel combined receive $3-$5 million annually in ASHA grants. ASHA grant recipients in Israel/West Bank included the American Committee for Shaare Zedek Hospital in Jerusalem, Trustees of the Feinberg Graduate School, and the Nazareth Project, Inc.

According to the American Committee for Shaare Zedek Medical Center in Jerusalem, the hospital does not receive any funding from the Israeli government, and USAID/ASHA has helped to rebuild the emergency room, provide mammography equipment, and sponsor an angiography system.314 Since 1995, the Nazareth Project has received a total of $10.3 million from ASHA and has allocated its most recent award for an expansion of its cardiac unit at Nazareth Hospital.315

Table 9. Recent ASHA Grants to Israeli Institutions

current U.S. dollars in millions

Fiscal Year

Grantee

Award

2024

Shaare Zedek Hospital

$1.929

2024

Nazareth Project

$1.995

2024

The Galilee Society

$0.366

2023

Shaare Zedek Hospital

$1.970

2023

Feinberg Graduate School

$1.800

2023

Nazareth Project

$1.500

2022

Shaare Zedek Hospital

$1.359

2022

Feinberg Graduate School

$1.275

2022

Nazareth Project

$1.500

Source: Foreign Assistance.gov.

The U.S.-Israeli Binational Foundations (BIRD, BARD, and BSF) For over 50 years, the United States and Israel have jointly maintained several binational foundations which actively fund a number of endeavors across multiple disciplines. The origin of these funds dates back to the early 1970s, when Israeli academics and business professionals began looking for ways to expand investment in Israel's nascent technology sector, which would later become the driving force in the country's economy. The United States and Israel launched several programs to stimulate Israeli industrial and scientific research, and Congress has on several occasions authorized and appropriated funds for this purpose to the following organizations:316
  • The BIRD Foundation (Israel-U.S. Binational Research & Development Foundation).317 BIRD, which was established in 1977, provides matchmaking services between Israeli and American companies in research and development with the goal of expanding cooperation between U.S. and Israeli private high-tech industries. The stated mission of the Foundation is "to stimulate, promote and support joint (non-defense) industrial R&D of mutual benefit" to the two countries.318 Projects are supported in the areas of homeland security, communications, electronics, electro-optics, software, life sciences, and renewable and alternative energy, among others.319 According to the Foundation, it has awarded $396 million in grants to 1,070 projects. Awards have typically have ranged from $700,000 to $900,000 and varied based on total project budget and other considerations. The recipients must provide at least 50% of the total project budget.
  • The BSF Foundation (U.S.-Israel Binational Science Foundation).320 BSF, which was started in 1972, promotes cooperation in scientific and technological research. Since 2012, BSF has partnered with the National Science Foundation (NSF) to jointly fund collaborative U.S.-Israeli scientific research. Since its founding, BSF has had 13,829 grantees.321
  • The BARD Foundation (Binational Agriculture and Research and Development Fund). BARD was created in 1978322 and supports U.S.-Israeli cooperation in agricultural research.323 As of 2025, it has funded 1,450 projects and disbursed $345 million in grants (typically three-year, $310,000 grants). From 1977 to 2021, Congress appropriated half-a-million dollars annually for BARD in annual Agriculture Appropriations legislation.324 Starting in FY2022, BARD received an additional $1 million annually and in FY2023 and FY2024, it received an additional half-a-million-dollar increase.325 In 2018, BARD signed a cooperative agreement with the National Institute of Food and Agriculture. Currently, the Israel Innovation Authority, BARD, and the Israeli Ministry of Finance are cooperating on a multi-year program to fund food and nutrition research.326
  • In 1995, the United States and Israel established the U.S.-Israel Science and Technology Foundation (USISTF) to fund and administer projects mandated by the U.S.-Israel Science and Technology Commission (USISTC),327 a bilateral entity established jointly by the United States Department of Commerce and the Israel Ministry of Industry, Trade, and Labor in 1994 to foster scientific, technological, and economic cooperation between the two countries.
  • Since 2007, Congress has authorized and appropriated funds for the creation of new U.S.-Israeli cooperative programs in various fields. Most of these new programs fall under the administrative purview of the BIRD Foundation. They include the following:

    U.S.-Israeli Energy Cooperation (BIRD Energy)

    BIRD Energy is a cooperative program between the U.S. Department of Energy and the Israeli Ministry of Energy designed to further research in renewable energy and energy efficiency. It is nominally part of the BIRD Foundation. Congress authorized the creation of the program in Section 917 of P.L. 110-140, the Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007.328 Although the law did not appropriate any funds for joint research and development, it did establish a grant program to support research, development, and commercialization of renewable energy or energy efficiency. The law also authorized the Secretary of Energy to provide funds for the grant program as needed. Congress authorized funding for the program for seven years from the time of enactment, which was on December 19, 2007. Then, in December 2014, Congress passed P.L. 113-296, the United States-Israel Strategic Partnership Act of 2014, which reauthorized the U.S.-Israeli Energy Cooperation program for an additional 10 years, until September 30, 2024. In the 118th Congress, H.R.9713, the BIRD Energy and U.S.-Israel Energy Center Reauthorization Act of 2024, would have reauthorized BIRD Energy through 2034. Through FY2024, Congress and the Administration have provided a total of $29.7 million for BIRD Energy.329 As of 2023, total combined U.S. and Israeli investment in BIRD Energy for 61 signed projects stood at $53.7 million.

    U.S.-Israel Center of Excellence in Energy, Engineering and Water Technology (Energy Center)

    In 2018, the U.S. Department of Energy and the Israeli Energy Ministry agreed to establish a new program known as the U.S.-Israel Center of Excellence in Energy, Engineering and Water Technology ("the Energy Center").330 To date, Congress has appropriated331 $28 million for the center, and the Israeli government and private sector partners have matched those funds.332 The Center focuses on fossil energy, energy storage, cyber, and the energy-water nexus; for each topic, there is a consortium of U.S. and Israeli companies and/or research institutions jointly performing research and development. To date, there have been 61 signed projects and total government funding for the Center of $53.7 million.

    BIRD Homeland Security (BIRD HLS)

    The BIRD Foundation also manages the BIRD Homeland Security Program, a cooperative undertaking between the U.S. Department of Homeland Security (DHS) and the Israel Ministry of Public Security (MOPS) to further joint research of advanced technologies for Homeland Security.333 To date, Congress has provided a total of $17 million in funding for BIRD HLS.334 Other examples of bilateral homeland security projects include search and rescue systems, wearable indoor positioning systems, and an artificial intelligence-based analytics video security solution used to protect public facilities.

    BIRD Cyber

    Israel is one of the global leaders in cybersecurity technology. According to one report from 2022, nearly 40% of private global investment in cybersecurity takes place in Israel.335 Section 1551 of P.L. 117-81, the National Defense Authorization Act for FY2022, required the Department of Homeland Security to establish a grant program to support U.S.-Israeli cooperation in cybersecurity research and commercialization of cybersecurity technology. The act authorized not less than $6 million a year for such activities from FY2022 through FY2026. The BIRD Cyber program is a collaboration between the foundation, DHS, Israel's National Cyber Directorate, and private industry and academia. BIRD Cyber has identified various sectors of concentration, such as, among other things, secure architecture for protecting operational processes; and risk assessment solutions for airports.336 To date, Congress has appropriated $12 million for BIRD Cyber.337

    Other Congressionally Authorized Cooperative Endeavors

    The following is a list of other congressionally authorized cooperative endeavors between the United States and Israel:

    U.S.-Israel Cooperation in International Development In 1985, Congress first authorized (by amending Section 106 of the FAA) and appropriated foreign assistance funds to "finance cooperative projects among the United States, Israel, and developing countries."338 Based on this congressional mandate, USAID launched two programs in partnership with Israel: the Cooperative Development Program (CDP - training and technical assistance projects run by Israel in the developing world) and the Cooperative Development Research Program (CDR - scientific research on problems of developing countries).339 For nearly two decades, Israel used cash aid grants to train development personnel in Israel and in foreign nations. USAID phased out the CDP program after FY2003.340 Section 1278 of P.L. 116-283, the 2021 NDAA, further amended Section 106 of the FAA of 1961 (22 U.S.C. §2151d) to authorize $2 million a year (FY2021-FY2023) to finance cooperative projects among "the United States, Israel, and developing countries that identify and support local solutions to address sustainability challenges relating to water resources, agriculture, and energy storage." To date, Congress has appropriated $7 million for this program.341 Given recent Trump Administration changes to USAID, the future status of this program is unclear.
  • Health Technologies Cooperation342 – Section 1280A of P.L. 116-283, the 2021 NDAA, authorized $4 million a year (FY2021-FY2023) for bilateral cooperation between the U.S. Department of Health and Human Services and the Government of Israel to focus on health technologies to address the challenge of the COVID-19 pandemic. After the expiration of the program, lawmakers continued funding for U.S.-Israeli health cooperation in FY2024 legislation ($4 million).343 The Administration for Strategic Preparedness and Response (ASPR) manages the current program in conjunction with Duke University.344 To date, Congress has appropriated $13.08 million for this cooperative health program.345
  • Military Trauma Education and Training – P.L.118-159, the FY2025 National Defense Authorization Act, authorizes the Secretary of State to establish a joint education and training program with appropriate personnel of the Medical Corps of the IDF to share best practices for general trauma care, among other things.
  • Appendix A. Israel and Recent Legislation The following tables (Table A-1 and Table A-2) delineate all U.S. foreign aid authorized and appropriated by Congress for Israel for fiscal years (FY) 2024 and 2025. They include U.S. foreign military aid and funding for joint missile defense pledged to Israel as part of the ongoing 10-year, $38 billion Memorandum of Understanding (MOU) on military aid, covering FY2019 to FY2028. Under the terms of the MOU, successive administrations have requested from Congress $3.3 billion in Foreign Military Financing (FMF) per year for Israel and $500 million in joint missile defense programs ($3.8 billion total). MOU-related authorizations346 and appropriations totaling $3.8 billion are in italics within each cell. Items relating to U.S. funding for joint defense and nondefense cooperative programs, but that fall outside the MOU, are not in italics. Supplemental assistance is not in italics. Table A-1. P.L. 119-4, the FY2025 Continuing Resolution

    Section Title

    Description

    Appropriation Amount

    Section 11206(1)

    Specifies FY2025 FMF for Off-Shore Procurement for Israel (per the terms of the MOU).

    $450.3 million

    Section 11208(c) Reauthorizes loan guarantees to Israel through 2030.

    n/a

    Section 11208(d) Reauthorizes annual global funding caps for foreign stockpiles, including WRSA-I through FY2027.

    n/a

    Source: Congress.gov.

    Notes: Italics indicates amounts in line with the U.S.-Israel MOU on assistance.

    Table A-2. P.L.118-159, the FY2025 National Defense Authorization Act

    Section Title

    Description

    Authorization Amount

    Section 1644 - Iron Dome short-range rocket defense system and Israeli cooperative missile defense program co-development and co-production

    Authorizes not more than $110 million to the Government of Israel to procure components for the Iron Dome short-range rocket defense system through co-production of such components in the United States by industry of the United States.

    $110 million

    Authorizes "not more than" $40 million for Israel to procure components for the David's Sling Weapon System through co-production in the United States.

    $40 million

    Authorizes "not more than" $50 million for Israel to procure components for the Arrow 3 Upper Tier Interceptor Program through co-production in the United States.

    $50 million

    Section 4201 - Research, Development, Test, and Evaluation

    Authorizes $300 of the remaining $500 million in MOU-pledged joint missile defense programs for U.S.-Israeli cooperation.

    $300 million

    Section 4201 - Research, Development, Test, and Evaluation

    Authorizes Combating Terrorism Technology Support funds, including increases to the U.S.-Israeli anti-tunneling program above the President's request.

    $30 million

    Section 4201 - Research, Development, Test, and Evaluation

    Authorizes Combating Terrorism Technology Support funds, including $47.5 million for U.S.-Israel cooperation on emerging defense technologies.

    $47.5 million

    Source: Congress.gov.

    Notes: Italics indicates amounts in line with the U.S.-Israel MOU on assistance. The act also raised the authorization cap on the anti-tunneling program to $80 million annually.

    Table A-3. P.L.118-50, Making emergency supplemental appropriations for the fiscal year ending September 30, 2024

    Section Title

    Description

    Appropriation Amount

    Title I Department of Defense, Procurement, Defense-Wide

    Procurement of the Iron Dome and David's Sling defense systems to counter short-range rocket threats.

    $4 billion

    Title I Department of Defense, Procurement, Defense-Wide

    Procurement of the Iron Beam defense system to counter short-range rocket threats.

    $1.2 billion

    Title III Department of State and Related Agency, Funds Appropriated to the President, Foreign Military Financing

    FMF to remain available until September 30, 2025, for assistance for Israel of which up to $769.3 million may be available for the procurement in Israel of defense articles (this limitation may be exceeded, if agreed by the United States and Israel, following consultation with the Committees on Appropriations). Any congressional notification requirement applicable to funds made available under this heading in this division for Israel may be waived if the Secretary of State determines that to do so is in the national security interest of the United States.

    $3.5 billion

    General Provisions, Section 305

    Amends WRSA-I authorization.

    n/a

    General Provisions, Section 306

    For FY2024 only, eliminates any caps on U.S. additions to WRSA-I.

    n/a

    Source: Congress.gov.

    Table A-4. P.L.118-47, the Further Consolidated Appropriations Act, FY2024

    Bill Text, House/Senate Report Language, or Joint Explanatory Statement (JES)

    Section Title

    Description

    Appropriation Amount

    Bill Text

    Division A, Department of Defense Appropriations Act, Section 8072,

    Appropriates $500 million for Israeli cooperative programs, including $80 million for Iron Dome, $127 million for David's Sling, $80 million for Arrow III, and $173 million for Arrow II.

    $500 million

    Bill Text

    Division F - Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024, Migration and Refugee Assistance

    Provides $5 million in grants from the State Department's Migration and Refugee Assistance account (MRA) to assist in the resettlement of migrants to Israel.

    $5 million

    Bill Text

    Division F - Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024, Special Provisions, Section 7034 (k)(6)

    Extends the authorization of loan guarantees to Israel through FY2029.

    n/a

    Bill Text

    Division F - Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024, Middle East and North Africa, Section 7041(d)

    Provides "not less than" $3.3 billion in FMF grants for Israel. These funds must be disbursed within 30 days after the bill's enactment. Of the $3.3 billion, $725.3 million is for use in Israel, also known as off-shore procurement (OSP).

    $3.3 billion

    JES

    Division F - State, Foreign Operations, and Related Programs Appropriations Act, 2024

    USAID-Israel development cooperation.

    $3 million

    JES

    Division A - Defense Appropriations Act, 2024

    Combating Terrorism Technology Support – U.S.-Israeli Counter-Tunneling Program.

    $47.5 million

    JES

    Division A - Defense Appropriations Act, 2024

    Combating Terrorism Technology Support – U.S.-Israeli Counter-Unmanned Aerial Systems and Directed Energy Program.

    $40 million

    JES

    Division D - Labor, Health and Human Services, Education and Related Agencies Appropriations Act, 2024 Congress,

    Health Technologies Cooperative Program, Preparedness and Response Innovation

    $4 million

    Report Language

    Division C – Homeland Security Appropriations Act, 2024, The joint explanatory statement accompanying this division is approved and indicates congressional intent. Unless otherwise noted, the language set forth in House Report 118-123 and Senate Report 118-85 carries the same weight as language included in this joint explanatory statement and should be complied with unless specifically addressed to the contrary in this joint

    explanatory statement.

    Provides $6 million for U.S.-Israel Cybersecurity Cooperation grant program

    $6 million

    Report Language

    Division C – Homeland Security Appropriations Act, 2024, The joint explanatory statement accompanying this division is approved and indicates congressional intent. Unless otherwise noted, the language set forth in House Report 118-123 and Senate Report 118-85 carries the same weight as language included in this joint explanatory statement and should be complied with unless specifically addressed to the contrary in this joint

    explanatory statement.

    Provides BIRD Homeland Security (BIRD HLS) Program.

    $2 million

    Source: Congress.gov.

    Notes: Italics indicates amounts in line with the U.S.-Israel MOU on assistance.

    Appendix B. Emergency or Supplemental Aid to Israel Table B-1. Emergency or Supplemental Aid to Israel

    Date Enacted

    Bill Name (Public Law)

    Congressional Action

    December 26, 1973

    Emergency Security Assistance Act of 1973 (P.L. 93-199)

    • Congress appropriated $2.2 billion for emergency military assistance or foreign military sales credits.

    August 15, 1985

    Supplemental Appropriations Act, 1985 (P.L. 99-88)

    • Congress appropriated $1.5 billion in ESF for Israel and which was made available as cash grant transfers (for Egypt too).

    November 5, 1990

    Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (P.L. 101-513)

    • Congress appropriated $1.2 billion in ESF as a cash transfer and specified that up to $200 million, during the period of the Desert Shield emergency, could be used by Israel.

    March 28, 1991

    Emergency Supplemental Assistance for Israel Act of 1991 (P.L.102-21)

    • Congress appropriated $650 million in ESF to Israel as a cash transfer for additional costs resulting from the conflict in the Persian Gulf region.

    October 6, 1992

    Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 (P.L. 102-391)

    • Congress authorized up to $10 billion in loan guarantees to Israel from FY1993 to FY1997 as a result of "Israel's extraordinary humanitarian effort to resettle and absorb immigrants into Israel from the republics of the former Soviet Union, Ethiopia and other countries."

    April 26, 1996

    Omnibus Consolidated Rescissions and Appropriations Act of 1996 (P.L. 104-134)

    • Congress appropriated $50 million to Israel "for emergency expenses necessary to meet unanticipated needs for the acquisition and provision of goods, services, and/or grants for Israel necessary to support the eradication of terrorism in and around Israel."

    August 2, 2002

    2002 Supplemental Appropriations Act for Further Recovery From and Response To Terrorist Attacks on the United States (P.L. 107-206)

    • Congress appropriated $200 million in ESF for Israel, "all or a portion of which may be transferred to, and merged with, funds appropriated by this act under the heading `nonproliferation, anti-terrorism, demining and related programs' for defensive, non-lethal anti-terrorism assistance."

    April 16, 2003

    Emergency Wartime Supplemental Appropriations Act (P.L. 108-11 FY2003)

    • Congress authorized $9 billion in loan guarantees for Israel.
    • Congress appropriated $1 billion in FMF for Israel.

    August 4, 2014

    Emergency Supplemental Appropriations Resolution, 2014 (P.L.113-145)

    • Congress appropriated $225 million to Israel for the Iron Dome defense system in support of Operation Protective Edge.

    March 15, 2022

    H.R.2471 - Consolidated Appropriations Act, 2022 (P.L.117-103)

    • Congress appropriated $1 billion to Israel for the Iron Dome defense systems for FY2022-FY2024.
    • In addition to other funding for Israel, the bill also provided $108 million in Iron Dome appropriations from the annual Defense Department's Procurement, Defense-Wide and Research, Development, Test and Evaluation Defense-Wide accounts.

    April 4, 2024

    Making emergency supplemental appropriations for the fiscal year ending September 30, 2024, and for other purposes (P.L.118-50)

    • Congress appropriated $3.5 billion in FMF for Israel ($769.3 million or more of which may be spent on Israeli equipment) and $5.2 billion in defense appropriations for missile defense ($4 billion) and Israel's new laser defense system, Iron Beam ($1.2 billion).
    Appendix C. Common Acronyms and Abbreviations used in this Report

    AECA

    Arms Export Control Act

    DOD

    Department of Defense

    DSCA

    Defense Security Cooperation Agency

    ESF

    Economic Support Fund

    FAA

    Foreign Assistance Act

    FMF

    Foreign Military Financing

    FMS

    Foreign Military Sale

    HFAC

    House Foreign Affairs Committee

    IDF

    Israel Defense Forces

    LOA

    Letter of Offer and Acceptance

    MOU

    Memorandum of Understanding

    MRA

    Migration and Refugee Assistance

    NDAA

    National Defense Authorization Act

    OSP

    Off-Shore Procurement

    QME

    Qualitative Military Edge

    SFOPS

    Department of State, Foreign Operations, and Related Programs

    SFRC

    Senate Foreign Relations Committee

    UAE

    United Arab Emirates

    USAID

    U.S. Agency for International Development

    WRSA

    War Reserves Stock Allies

    Footnotes

    1.

    The issue of what constitutes legitimate criticism of Israel (or U.S. policy toward Israel) and its actions toward the Palestinians, and what qualifies as the de-legitimization of Israel or even anti-Semitism, is legally and politically contested. The U.S. Department of State's working definition of anti-Semitism is drawn from the "non-legally binding working definition" adopted by the International Holocaust Remembrance Alliance (IHRA) in 2016. According to the IHRA, contemporary examples of anti-Semitism include, among other things, "Denying the Jewish people their right to self-determination, e.g., by claiming that the existence of a State of Israel is a racist endeavor," and "Holding Jews collectively responsible for actions of the state of Israel." See, International Holocaust Remembrance Alliance, "IHRA non-legally binding working definition of antisemitism," May 26, 2016. In the 118th Congress, H.R. 6090, the Antisemitism Awareness Act of 2023 (passed by the House 390-21 and received in the Senate), would have adopted the IHRA's definition of anti-Semitism for the purposes of the act. Some lawmakers who voted against the bill claimed that it would suppress "valid criticism of the state of Israel." See, Representative Jerry Nadler, "I'm Jewish. Here's why I voted against the Antisemitism Awareness Act," Washington Post, May 8, 2024.

    2.

    Jonathan Weisman, "Democratic Primaries Are Embroiled in Debate Over Support for Israel," New York Times, July 15, 2022; Alex Kane, "The New Debate Over Aid to Israel," Jewish Currents, August 8, 2023; and Ross Barkan, "How Oct. 7 Drove a Wedge into the Democratic Party," New York Times, February 7, 2024.

    3.

    Kayla Guo, "Liberal Democrats Urge 'No' Vote on Israel Aid to Pressure Biden on Gaza," New York Times, April 19, 2024 and Senator Bernie Sanders, "Sen. Bernie Sanders Has Become a Leading Critic of Israel's War in Gaza," May 29, 2024.

    4.

    House Majority Leader Steve Scalise, "Scalise's End-of-Congress Recap: House Republicans Delivered Wins Despite Slim Majority," December 22, 2024 and Michelle Boorstein, "Huckabee pick as Israel ambassador reflects long evangelical alliance," Washington Post, December 2, 2024.

    5.

    See CRS Report R48289, Fact Sheet: Congressional Votes Relating to the Israel-Hamas Conflict.

    6.

    Representative Pramila Jayapal, "Jayapal Introduces Legislation to Block Offensive Weapons Sales to Israel," March 31, 2025.

    7.

    For example, see U.S. Department of State, "U.S. Security Cooperation with Ukraine, Fact Sheet," May 10, 2024.

    8.

    U.S. Department of State, "U.S. Security Cooperation with Israel," October 19, 2023; "U.S. Security Cooperation with Israel: Fact Sheet," January 20, 2025.

    9.

    For additional background, see CRS Report R47754, Israel and Hamas October 2023 Conflict: Frequently Asked Questions (FAQs) and CRS Report R47828, Israel and Hamas Conflict In Brief: Overview, U.S. Policy, and Options for Congress.

    10.

    The White House, "Remarks by President Biden on the Terrorist Attacks in Israel," October 10, 2023.

    11.

    Yonah Jeremy Bob, "US sends 500th aircraft to Israel as airlifts of weapons, equipment continue," Jerusalem Post, August 26, 2024.

    12.

    The White House, "Remarks by President Biden on the United States' Response to Hamas's Terrorist Attacks Against Israel and Russia's Ongoing Brutal War Against Ukraine," October 20, 2024.

    13.

    The White House, "FACT SHEET: White House Calls on Congress to Advance Critical National Security Priorities," October 20, 2023.

    14.

    See, Senator Jacky Rosen, "Rosen Leads Bipartisan Group of Senate Armed Services Committee Members in Requesting Additional Iron Dome Batteries for Israel," October 11, 2023; and Representative Brian Mast, "Mast, Moskowitz, Bipartisan Coalition Urge DoD to Send Additional Iron Dome System to Israel," October 16, 2023.

    15.

    Noah Robertson, Bryant Harris, and Jen Judson, "US agrees to send two Iron Dome batteries to Israel," Defense News, October 24, 2023.

    16.

    Ashley Roque, "Army's Iron Dome batteries on 11-month lease with Israel, which could be extended," Breaking Defense, November 7, 2023.

    17.

    Roll Call Vote 118th Cong. - 2nd sess., available at https://www.congress.gov/bill/118th-congress/senate-resolution/504/actions?s=1&r=1&q=%7B%22search%22%3A%22s.res.504%22%7D.

    18.

    See, Jared Malsin and Nancy A. Youssef, "How the U.S. Arms Pipeline to Israel Avoids Public Disclosure," Wall Street Journal, March 6, 2024.

    19.

    Defense Security Cooperation Agency, "Israel—M830a1 120mm Tank Cartridges," December 9, 2023, and "Israel – 155mm Artillery Ammunition," December 29, 2023.

    20.

    The White House, "National Security Memorandum on Safeguards and Accountability with Respect to Transferred Defense Articles and Defense Services," February 8, 2024. Section 620I of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2378-1) says that "[n]o assistance shall be furnished under this chapter or the Arms Export Control Act [22 U.S.C. 2751 et seq.] to any country when it is made known to the President that the government of such country prohibits or otherwise restricts, directly or indirectly, the transport or delivery of United States humanitarian assistance."

    21.

    Senator Chris Van Hollen, "Van Hollen, Schatz, Colleagues Press Administration on Concerns with New Arms Sales to Netanyahu Government, Request Assurances Prior to Proceeding," February 23, 2024.

    22.

    Stephen Semler, "Gaza breakdown: 20 times Israel used US arms in likely war crimes," Responsible Statecraft, Quincy Institute for Responsible Statecraft, August 25, 2024.

    23.

    Yasmeen Abutaleb, "Biden cease-fire push falters again after new demand by Hamas," Washington Post, September 7, 2024.

    24.

    The White House, "Readout of President Joe Biden's Call with Prime Minister Netanyahu of Israel," April 4, 2024.

    25.

    "Biden ultimatum to Netanyahu: protect Gaza civilians, or else," Reuters, April 5, 2024.

    26.

    Just Security, "State Department Submits Key Report to Congress on Israel's Use of US Weapons," May 10, 2024.

    27.

    See CRS Report R48289, Fact Sheet: Congressional Votes Relating to the Israel-Hamas Conflict.

    28.

    Unlike regular FMF appropriations for Israel, which Congress annually mandates be apportioned within 30 days of passage, the FY2024 supplemental FMF for Israel was treated like all other global FMF allocations. The Office of Management and Budget (OMB) notified the relevant congressional committees of the Administration's intent to obligate FMF for Israel (August 2024); when that notification cleared, it apportioned the funds. See, "US releases $3.5 billion to Israel to spend on US weapons, military equipment," Reuters, August 9, 2025.

    29.

    The Biden Administration notified Congress of its intent to obligate the $3.5 billion in FMF in August 2024. See, "US releases $3.5 billion to Israel to spend on US weapons, military equipment," Reuters, August 9, 2024.

    30.

    In January 2025, sources noted that Israel had used $5.2 billion in supplemental appropriations to reach a contract with Rafael Advanced Defense Systems to fund procurement of Iron Dome, David's Sling, and Iron Beam components and systems. See, Lara Korte, "US aid package funds $5.2 billion deal to bolster Israeli air defenses," Stars & Stripes, January 16, 2025.

    31.

    U.S. Department of State, "Department of State Press Briefing," March 25, 2024.

    32. "Senior Democrat backs conditioning Israel aid if Rafah op launched sans provisions to protect civilians," Times of Israel, April 4, 2024. 33.

    "Erin Burnett Outfront: One-On-One with the President of the United States," CNN, May 8, 2024.

    34.

    U.S. Department of Defense, "Pentagon Press Secretary Air Force Maj. Gen. Pat Ryder Holds a Press Briefing," May 9, 2024.

    35.

    Nancy A. Youssef and Jared Malsin, "U.S. Agrees to Ship 500-Pound Bombs," Wall Street Journal, July 11, 2024.

    36.

    Oliver Holmes, "Which countries have banned or restricted arms sales to Israel?" The Guardian (UK), September 3, 2024.

    37.

    Astrid Suarez, "Colombia breaks diplomatic ties with Israel but its military relies on key Israeli-built equipment," Associated Press, May 3, 2024.

    38.

    "Germany has stopped approving war weapons exports to Israel, source says," Reuters, September 19, 2024. Some sources have claimed that contrary to reports of German restrictions on certain exports to Israel, overall, German defense exports to Israel actually increased in 2024. See, "German arms exports to Israel up sharply," Globes (Israel), October 28, 2024.

    39.

    "Italy arms exports to Israel continued despite block, minister says," Reuters, March 24, 2024.

    40.

    "FACTBOX-Who are Israel 's main weapons suppliers and who has halted exports?" Reuters, May 10, 2024.

    41.

    "Spain cancels purchase of police ammunition from Israeli firm," Reuters, October 29, 2024; and "Maersk container ship denied docking at Spanish port over arms to Israel," Agence France Presse, November 9, 2024.

    42.

    "Macron calls to halt arms deliveries to Israel in Gaza war," BBC News, October 5, 2024.

    43.

    Senator Peter Welch, "Welch Leads Colleagues Calling for Consistent Application of Leahy Law to the IDF," May 7, 2024; and Representative Jason Crow, "Reps. Crow, Deluzio Lead 86 Members in Letter Urging Biden to Enforce U.S. Law & Policy Regarding US Humanitarian Aid to Gaza," May 3, 2024.

    44.

    Speaker Mike Johnson (@SpeakerJohnson), "The President's ultimatums should be going to Hamas, not Israel," X post, April 4, 2024, https://twitter.com/SpeakerJohnson/status/1776046097086972393.

    45.

    Senator Tim Scott, "Scott, Cotton, 46 Senate GOP Colleagues to Biden-Harris Admin: Delaying Weapons to Israel Undermines Our Ally, Accommodates Iran," August 2, 2024.

    46.

    David Horowitz, "The ambassador's farewell warning: You can't ignore the impact of this war on future US policymakers," Times of Israel, January 12, 2025.

    47. Lulu Garcia-Navarro, "The Interview: Antony Blinken Insists He and Biden Made the Right Calls," New York Times, January 4, 2025. 48.

    Julia Frankel and Drew Callister "Israel's Netanyahu blames Biden for withholding weapons. US officials say that's not the whole story," Associated Press, June 18, 2024.

    49.

    John Hudson, "Key Democrats approve major arms sale to Israel, including F-15s," Washington Post, June 17, 2024.

    50.

    Robert Jimison, "After Delay, Top Democrats in Congress Sign Off on Sale of F-15 Jets to Israel," New York Times, June 17, 2024.

    51.

    See https://www.dsca.mil/tags/israel.

    52.

    Senators Peter Welch, Jeff Merkley, and Brian Schatz each cosponsored one or more of the JRDs.

    53.

    Senator Bernie Sanders, "Sanders and Colleagues Move to Block Arms Sales to Israel," September 25, 2024.

    54.

    X, Barak Ravid, October 15, 2024, 9:33am, at https://x.com/BarakRavid/status/1846182689222664471.

    55.

    U.S. Department of State, "Press Briefing," November 12, 2024.

    56.

    See CRS Report R48289, Fact Sheet: Congressional Votes Relating to the Israel-Hamas Conflict, by Travis A. Ferrell and Clayton M. Levy.

    57.

    Felicia Schwartz, "US to approve $680mn arms sale to Israel," Financial Times, November 27, 2024.

    58.

    Jared Malsin, Nancy A. Youssef, and Carrie Keller-Lynn, "U.S. Plans Big Arms Sale to Israel—Administration tells Congress $8 billion package will include bombs, missiles," Wall Street Journal, January 6, 2025.

    59.

    Adam Taylor, "Israel moves to make heavy bombs, but U.S. reliance hard to shake, experts say," Washington Post, January 12, 2025.

    60.

    Ha'aretz and Yaniv Kubovich, "Report: Israel Is Facing a 'Serious' Shortage of Interceptor Missiles," Ha'aretz, October 15, 2024.

    61.

    "Trump makes 2,000-pound bombs available to Israel, undoing Biden pause," Reuters, January 26, 2025.

    62.

    Edward Wong, "Sweeping Halt to Foreign Aid Does Not Apply to Arms for Israel and Egypt," New York Times, January 25, 2025.

    63.

    Defense Security Cooperation Agency, "Israel – Munitions, Guidance Kits, Fuzes, and Munitions Support," Transmittal No. 24-13, February 7, 2025.

    64.

    Jeremy Binnie, "US approves air-launched munitions for Israel," Jane's Defence Weekly, February 10, 2025.

    65.

    Felicia Schwartz, "US to approve $680mn arms sale to Israel," Financial Times, November 27, 2024.

    66.

    Edward Wong and Robert Jimison, "Trump Administration Moves to Send $8 Billion in Arms to Israel, Bypassing Some Lawmakers," New York Times, February 8, 2025.

    67.

    Some of the JRDs were duplicative due to updates in filing. In sum, they included S.J.Res. 20, S.J.Res. 21, S.J.Res. 22, S.J.Res. 23, S.J.Res. 26, and S.J.Res. 27.

    68.

    Alex Horton, Missy Ryan, and Meg Kelly, "Trump repeals Biden directive linking U.S. arms transfers to human rights," Washington Post, February 25, 2025.

    69.

    Horton, et al., "Trump Repeals Biden Directive."

    70.

    For example, Senate Foreign Relation Committee, "Risch Statement on Trump NSM-20 Revocation," February 24, 2025.

    71.

    See 22 U.S. Code §2776.

    72.

    For example, see Defense Security Cooperation Agency, "Israel – Munitions and Munitions Support," Transmittal No. 25-34, February 28, 2025.

    73.

    Yoav Zitun, "D9 bulldozer shipment stalled by US embargo, leaving Israeli soldiers exposed," YnetNews.com, November 10, 2024.

    74.

    Yehuda Shlezinger, "US partially lifts arms embargo on Israel ahead of ceasefire," Israel Hayom, January 19, 2025; and Danny Zaken, "Revealed: How US-Israel deal helped Netanyahu sign off on ceasefire," Israel Hayom, November 27, 2024.

    75.

    Laura Kelly, "Congress puts hold on Trump's $1 billion arms sale to Israel," The Hill, February 4, 2025.

    76.

    U.S. Department of State, "Military Assistance to Israel," March 1, 2025.

    77.

    Michael Crowley and Edward Wong, "Gaza War Turns Spotlight on Long Pipeline of U.S. Weapons to Israel," New York Times, April 7, 2024.

    78.

    Edward Wong, "U.S. Considers Sending Israel 24,000 Assault Rifles Held Back Under Biden," New York Times, January 31, 2025.

    79.

    Emanuel Fabian, "Israel marks 800th planeload of US guns, bombs and ammo as war nears day 600," Times of Israel, May 27, 2025.

    80.

    For many years, U.S. economic aid helped subsidize a lackluster Israeli economy, but since the rapid expansion of Israel's high-tech sector and overall economy in the 1990s (sparked partially by U.S.-Israeli scientific cooperation), Israel has become one of the world's most dynamic economies (as of 2025, according to the International Monetary Fund, Israel's Gross Domestic Product per capita ranks 21st worldwide). Israel and the United States agreed to gradually phase out economic grant aid to Israel. In FY2008, Israel stopped receiving bilateral Economic Support Fund (ESF) grants. The country had been a large-scale recipient of grant ESF assistance since 1971.

    81.

    According to the Stockholm International Peace Research Institute (SIPRI), from 2020 to 2024, Israel was the 8th largest arms exporter worldwide, accounting for 3.1% of world deliveries. See "Trends in International Arms Transfers, 2024," SIPRI Fact Sheet, March 2025.

    82.

    Sasson Hadad, Tomer Fadlon, and Shmuel Even (editors), "Israel's Defense Industry and US Security Aid," INSS, Memorandum No. 202, July 2020.

    83.

    Dov Lieber, "Defense Industry Is Booming in Israel—Regional war, quest for aerial-defense systems fuel a surge despite embargoes," Wall Street Journal, January 9, 2025.

    84.

    See Zain Hussain and Dr Alaa Tartir, "Recent trends in international arms transfers in the Middle East and North Africa," Stockholm International Peace Research Institute (SIPRI), April 10, 2025.

    85.

    See, for example, Dov Lieber, "Defense Industry Is Booming in Israel—Regional war, quest for aerial-defense systems fuel a surge despite embargoes," Wall Street Journal, January 9, 2025.

    86.

    Due to U.S. participation in the David's Sling and Arrow 3 programs, the United States approved Israel's sale to Finland and Germany respectively in 2023, several months before both final sales agreements had been signed.

    87.

    Per a 1987 Memorandum of Understanding between the United States and Israel, as amended (Reciprocal Defense Procurement and Acquisition Policy Memorandum of Understanding), Israeli and U.S. defense contractors are able to compete for contracts in both countries on an equal basis. For the text of the MOU, see https://www.acq.osd.mil/dpap/Docs/mou-israel.pdf.

    88.

    See CRS In Focus IF11894, Security of Supply Arrangements (SOSAs): Background and Issues.

    89.

    U.S. Department of Defense, Security of Supply, available at https://www.businessdefense.gov/security-of-supply.html.

    90.

    See "Israel Issues Stricter Guidelines for use of its Cyber Tech Exports," Reuters, December 6, 2021.

    91.

    Omer Benjakob, Josh Breiner, and Avi Scharf, "Israeli Firm Suspected of Illegally Selling Classified Spy Tech," Ha'aretz, March 8, 2023.

    92.

    "US to restrict visas for those who misuse commercial spyware," Reuters, February 5, 2024.

    93.

    P.L. 118-50, the FY2024 Emergency Supplemental Act, did permit up to up to $769.3 million (out of $3.5 billion) in FMF to be used for Off-Shore Procurement.

    94.

    Ora Coren, "Israel's Arms Makers to Become more American under New Military-Aid Pact," Ha'aretz, updated April 10, 2018.

    95. Available online at https://elbitsystems.com/globalpresence/. 96.

    Stephen Losey, "Ukraine lessons helped drive acquisition of RADA, Leonardo DRS chief says," Defense News, June 22, 2022.

    97.

    General Atomics, "General Atomics Partners with Rafael to Build Precision-Guided Missile for U.S. Defense Customers," April 7, 2025.

    98.

    CRS conversation with U.S. State Department, Bureau of Political-Military Affairs (PM), January 6, 2022.

    99.

    Direct Commercial Contracts Division (DCC)/DCS allow a foreign entity to contract directly with a U.S.-based company in order to obtain needed supplies or services (subject to U.S. Government review and approval). This process takes the U.S. Government out of the "middleman" role that it plays in facilitating FMS transactions. See CRS In Focus IF11441, Transfer of Defense Articles: Direct Commercial Sales (DCS).

    100.

    Defense Security Cooperation Agency, Guidelines for Foreign Military Financing of Direct Commercial Contracts, March 2017.

    101.

    See, for example, Section 7035(b)(3), "Commercial Leasing of Defense Articles" in P.L. 118-47, the Further Consolidated Appropriations Act, 2024.

    102.

    P.L. 101-167, the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, states that "Only those countries for which assistance was justified for the Foreign Military Sales Financing Program in the fiscal year 1989 congressional presentation for security assistance programs may utilize funds made available under this heading for procurement of defense articles, defense services or design and construction services that are not sold by the United States Government under the Arms Export Control Act." The Defense Security Cooperation Agency's Security Assistance Manual further states that "DSCA (Directorate for Security Assistance (DSA) Direct Commercial Contracts Division (DCC)) approves DCCs to be financed with FMF on a case-by-case basis." See Chapter 9.7.3, Security Assistance Management Manual (SAMM) as Defense Security Cooperation Agency Manual 5105.38-M, DSCA Policy 12-20.

    103.

    U.S. Department of Commerce, International Trade Administration, "Israel - Country Commercial Guide, Aerospace and Defense," October 6, 2023.

    104.

    Dov S. Zakheim, "Is Turkey a threat to Israel?" The Hill, January 10, 2025.

    105.

    Alisa Odenheimer, "Israel Must Be More Independent in Weapons Production, PM Says," Bloomberg, March 31, 2025.

    106.

    Lilach Shoval, "Amid US tensions, Israel pivots to self-reliance on homegrown arms," Israel Hayom, August 13, 2024.

    107.

    Jeremy Binnie, "Israeli MoD orders locally produced bombs," Jane's Defence Weekly, January 7, 2025.

    108.

    For example, see Written Statement of General William O. Gribble Jr., Hearings on Research, Development, Test, and Evaluation Program for Fiscal Year 1973, Before Subcommittee No. 1 of Committee on Armed Services, House of Representatives, 92nd Cong., 2nd sess., February 2, 3, 7, 9, 22, 23, 24, March 6, 7, and 8, 1972.

    109.

    Secretary of State Alexander Haig, Statement for the Record submitted in response to Question from Hon. Clarence Long, House Appropriations Subcommittee on Foreign Operations Appropriations, April 28, 1981.

    110.

    In 1977, P.L. 95–92 provided that "In accordance with the historic special relationship between the United States and Israel and previous agreements and continuing understandings, the Congress joins with the President in reaffirming that a policy of restraint in United States arms transfers, including arms sales ceilings, shall not impair Israel's deterrent strength or undermine the military balance in the Middle East."

    111.

    "The Double Edged Sword of the Qualitative Military Edge," Israel Policy Forum, April 11, 2016.

    112.

    See Section 131, Certification Concerning AWACS sold to Saudi Arabia, P.L. 99-83, the International Security and Development Cooperation Act of 1985.

    113.

    Prior to 2008, during congressional review of possible U.S. arms sales to the Middle East, QME concerns were addressed on an ad hoc basis, usually through consultations between the military and committee staff. Some congressional staff argued that assessments for specific arms sales tended to be overly subjective and asserted that codifying the requirement would rationalize the process, make it more objective, and incorporate it as a regular component of the U.S. arms sales review process to Middle Eastern governments. CRS conversation with Senate Foreign Relations Committee staff member, September 24, 2020.

    114.

    Section 201(d)(2) defines QME as "the ability to counter and defeat any credible conventional military threat from any individual state or possible coalition of states or from non-state actors, while sustaining minimal damage and casualties, through the use of superior military means, possessed in sufficient quantity, including weapons, command, control, communication, intelligence, surveillance, and reconnaissance capabilities that in their technical characteristics are superior in capability to those of such other individual or possible coalition of states or non-state actors."

    115.

    See, e.g., U.S. Department of State, Remarks by Andrew J. Shapiro, Assistant Secretary, Bureau of Political-Military Affairs, November 4, 2011; "U.S.-Israel Strategic Cooperation: U.S. Provides Israel a Qualitative Military Advantage," Jewish Virtual Library.

    116.

    See Israel Ministry of Foreign Affairs, White House Statement on US Military Assistance to Israel, September 26, 1992, VOLUME 13-14: 1992-1994.

    117.

    Dan Williams, "Israel to get 'Smarter' U.S.-made Bombs than Saudis," Reuters, January 13, 2020.

    118.

    Eli Lake, "In Gates Book, Details of Israel's Hard Bargaining over Saudi Arms," Daily Beast, January 10, 2014.

    119.

    "U.S. Near $10 Billion Arms Deal with Israel, Saudi Arabia, UAE," Reuters, April 19, 2013.

    120.

    See https://www.samm.dsca.mil/chapter/chapter-5.

    121.

    See, The White House, "Joint Statement by President Clinton and Prime Minister Ehud Barak," July 19, 1999.

    122.

    United States-Israel Memorandum of Understanding, Signed by then U.S. Under Secretary of State R. Nicholas Burns and Israeli Ministry of Foreign Affairs Director General Aaron Abramovich, August 16, 2007.

    123.

    Memorandum of Understanding between the United States and Israel, September 14, 2016.

    124.

    Peter Baker and Julie Hirschfeld Davis, "U.S. Finalizes Deal to Give Israel $38 Billion in Military Aid," New York Times, September 13, 2016.

    125.

    Daniel B. Shapiro, "A Review of the Negotiations on the 2016 US-Israel MOU on Military Assistance," in Sasson Hadad, Tomer Fadlon, and Shmuel Even, Editors, Israel's Defense Industry and US Security Aid, INSS, pp. 61-68.

    126.

    Section 42(c) (22 U.S.C. §2791(c)) of the AECA prohibits using funds made available under this act for procurement outside the United States unless the President determines that such procurement does not have an adverse effect on the U.S. economy or the industrial mobilization base. Executive Order 13637 designated this authority to the Secretary of Defense and the issuance of an OSP waiver requires concurrence by the Departments of State and Commerce. See U.S. Department of Defense, Defense Security Cooperation Agency, Security Assistance Manual, Chapter 9.

    127.

    "Israeli UAV Firm agrees deal for Unnamed US Company," Jane's Defence Weekly, July 18, 2017.

    128.

    In FY2022, Congress appropriated $1 billion in additional missile defense funding for Israel. In FY2024, Congress appropriated $8.7 billion in combined FMF and missile defense funding (see Table 2).

    129.

    "By Itself, With U.S.: The Case for a U.S.-Israel Mutual Defense Treaty Post-10/7," The Jewish Institute for National Security of America (JINSA), October 7, 2024. Lahav Harkov, "Meet the Likud lawmaker advocating for the U.S. to phase out military aid to Israel," Jewish Insider, March 13, 2025; and "U.S.–Israel Strategy: From Special Relationship to Strategic Partnership, 2029–2047," The Heritage Foundation, March 12, 2025.

    130.

    Lahav Harkov, "Netanyahu calls to 'wean' Israel off U.S. aid amid growing tensions," Jewish Insider, May 12, 2025.

    131.

    Carrie Keller-Lynn, "Israel Must Bolster Military, Panel Warns," Wall Street Journal, January 8, 2025.

    132.

    Daniel B. Shapiro, "Let's talk about the next US-Israel military-assistance agreement," Defense One, January 31, 2025.

    133.

    The Israeli Ministry of Defense provides funding figures for its domestic defense budget but excludes some procurement spending and spending on civil defense. The estimate referenced above is based on figures published by Jane's, "Israel Defence Budget," January 12, 2024. Jane's removes FMF from its Israeli defense budget calculations to reflect how much Israel independently spends on defense.

    134.

    United States General Accounting Office, "U.S. Assistance to the State of Israel," Report by the Comptroller General of the United States, June 24, 1983.

    135.

    According to the Stockholm International Peace Research Institute (SIPRI), "Military spending as a share of GDP rose from 5.4 per cent in 2023 to 8.8 per cent in 2024, giving Israel the second highest military burden in the world behind Ukraine." See, Xiao Liang, Nan Tian, Diego Lopes da Silva, Lorenzo Scarazzato, Zubaida Karim, and Jade Guiberteau Ricard, "Trends in World Military Expenditure, 2024," SIPRI Fact Sheet, Stockholm International Peace Research Institute (SIPRI), April 2025.

    136.

    Defense Security Cooperation Agency (DSCA), Historical Sales Book Fiscal Years 1950 to 2022, FY2022 edition.

    137.

    U.S. Department of State, Bureau of Political-Military Affairs, "U.S. Security Cooperation with Israel: Fact Sheet," April 25, 2025.

    138.

    Cash flow financing is defined in Section 25(d) of the AECA and Section 503(a)(3) of the Foreign Assistance Act of 1961, as amended.

    139.

    See "U.S. Decides to Sell Some Arms to Israel That It Blocked in the Past," New York Times, October 12, 1976.

    140.

    Under this arrangement, Lockheed Martin sells Citibank a legal claim on its defense contract with Israel. The Defense Department then repays Citibank using the available FMF allocation for Israel. The Israeli government uses its own national funds to pay interest on the Citibank loans. One organization in support of continued U.S. support for Israel has advocated for Congress to authorize the use of FMF to cover Israeli interest payments on weapons deals to creditors. See Jonathan Ruhe, Charles B. Perkins, and Ari Cicurel, "Israel's Acceleration of U.S. Weapons Procurement: Analysis and Recommendations," The Jewish Institute for National Security of America (JINSA), February 2021. However, according to DSCA, it is unclear whether FMF is legally available for that purpose.

    141.

    CRS Correspondence with DSCA, January 2022.

    142.

    See Chapter 9.10.2, Security Assistance Management Manual (SAMM) as Defense Security Cooperation Agency Manual 5105.38-M, DSCA Policy 12-20.

    143.

    According to DSCA, "Since requirements and procedures are unique to each country, they are normally established in an agreement between the customer country, DSCA, and the appropriate banking institutions in the U.S. and the purchaser's country." See Defense Security Cooperation University, Security Cooperation Management, Chapter 12, edition 41, May 2021.

    144.

    On at least one occasion when government operations were funded by a continuing resolution, Congress has included provisions in the resolution preventing the early transfer of FMF to Israel until the final appropriations bill for that fiscal year was passed. See Section 109 of P.L. 113-46, the Continuing Appropriations Act, 2014.

    145.

    According to DSCA, "Some countries may establish an account with the federal reserve bank (FRB), New York, for their FMS [Foreign Military Sales] deposits. An agreement between the FMS purchaser's defense organization, the purchaser's central bank, FRB New York and DSCA identifies the terms, conditions, and mechanics of the account's operation. Countries receiving FMFP funds must maintain their interest-bearing account in the FRB." See Defense Institute of Security Assistance Management (DISAM), "The Management of Security Cooperation (Green Book)," 34th edition, April 2015.

    146.

    Foreign Credit Reporting System (FCRS), Amounts Due the U.S. Government, United States Department of the Treasury, Office of Global Economics and Debt. Israel finished paying off long-standing debts to the U.S. government in June 2023.

    147.

    See CRS Report RL31675, Arms Sales: Congressional Review Process, by Paul K. Kerr.

    148.

    In September 2008, DSCA notified Congress of a possible Foreign Military Sale of up to 75 F-35s to Israel in a deal with a possible total value of $15.2 billion. See Defense Security Cooperation Agency, "Israel - F-35 Joint Strike Fighter Aircraft," Transmittal No. 08-83, September 29, 2008.

    149.

    Emanuel Fabian, "Israel inks deal to buy 25 more F-35 fighter jets for $3 billion," Times of Israel, June 4, 2024.

    150.

    Yaakov Lappin, "Israeli Air Force Favouring Additional F-35s," Jane's Defence Weekly, September 10, 2020.

    151.

    Anna Ahronheim, "IAF commander: Israel first to use F-35 jet in combat," Jerusalem Post, May 22, 2018.

    152.

    For example, see "F-35 Stealth Fighter Sees First Combat, in Israeli Operation," BBC News, May 22, 2018 and "Israel - Air Force," Jane's World Air Forces, July 5, 2019, Yaakov Lappin and Jeremy Binnie, "IDF details Iranian UAV incursions," Jane's Defence Weekly, March 9, 2022, Jake Epstein, "The F-35 stealth fighter's victory against Iran's air defenses highlights its ability to wage a higher level of war," Business Insider, December 14, 2024.

    153.

    Aaron Spray, "5 Times The F-35 5th-Generation Fighter Has Been Used in Combat," Simpleflying.com, November 11, 2024.

    154.

    CQ Transcripts, "House Armed Services Subcommittee on Tactical Air and Land Forces Holds Hearing on F-35 Acquisition Program Update," December 12, 2023.

    155.

    See CRS Report R48304, F-35 Lightning II: Background and Issues for Congress.

    156.

    "Israel," Jane's World Air Forces, September 1, 2020.

    157.

    According to Jane's, FMF‐funded contracts in Israel (see Off-Shore Procurement) cannot be used for direct offsets. See, "Israel – Market Report," Jane's Emerging Markets Reports, January 17, 2024.

    158.

    Charles Forrester, "Lockheed Martin signs umbrella offset agreement with Israel," Jane's Defence Weekly, August 17, 2020.

    159.

    U.S. Department of Defense, U.S. Navy, Contracts for February 2, 2018.

    160.

    Gareth Jennings, "Israel Stands-Up Second F-35 Unit," Jane's Defence Weekly, January 17, 2020.

    161.

    Gareth Jennings, "Lockheed Martin to Design and Develop F-35 Variant 'Tailored' for Foreign Customer," Jane's Defence Weekly, December 29, 2021.

    162.

    Arie Egozi, "Israel formally requests 25 F-15 EX from the US: Sources," Breaking Defense, January 19, 2023.

    163.

    Defense Security Cooperation Agency, "Israel – F-15IA and F-15I+ Aircraft," Transmittal 24-01, August 13, 2024.

    164.

    "Israel signs $5.2 billion deal to acquire 25 F-15 fighter jets from Boeing," Reuters, November 7, 2024.

    165.

    Emanuel Fabian, "Defense Ministry signs $5.2 billion deal to buy 25 advanced F-15IA fighter jets," Times of Israel, November 7, 2024.

    166.

    Robert Tollast and Thomas Helm, "How Israel could strike back against Iran: Experts outline high-risk options," The National (UAE), April 14, 2024.

    167.

    Reps. August Pfluger and Rob Wittman, and Chris Stewart and Michael Makovsky, "U.S. must expedite delivery of KC-46A aerial refueling tanker to Israel," Washington Times, May 1, 2024.

    168.

    Defense Security Cooperation Agency, "Israel—KC-46A Aerial Refueling Aircraft," Transmittal No. 20-12, March 3, 2020.

    169.

    Joseph Trevithick, "Israel's Request to Speed Delivery Of KC-46 Tankers Critical for Striking Iran Denied - The War Zone," The Drive, December 14, 2021.

    170.

    Seth Frantzman, "Israel inks $3 Billion deal for KC-46 Tankers, CH-53 helos," Defense News, January 4, 2022.

    171.

    Executive Office of the President, Office of Management and Budget, July 27, 2023, Follow-on to Statement of Administration Policy, S. 2226 – National Defense Authorization Act for FY2024.

    172.

    Jeremy Binnie, "Israeli airbase to be upgraded for new KC-46 tankers," Jane's Defence Weekly, January 4, 2024.

    173.

    Conti Federal, "Conti Federal Awarded Task Order Contract for Taxiway and Runway Rehabilitation in Israel," July 11, 2024.

    174.

    U.S. Department of Defense, U.S. Central Command, "Completion of Juniper Oak 23.2 Exercise," January 26, 2023.

    175.

    A 1981 MOU laid out in broad terms which issues U.S.-Israeli defense working groups would cover. See, Memorandum of Understanding between the Government of the United States and the Government of Israel on Strategic Cooperation, November 30, 1981. The parties reached this MOU several months after the U.S. sale to Saudi Arabia of AWACs. See, Bernard Gwertzman, "U.S. and Israel Sign Strategic Accord to Counter Soviet: Senate Vote," New York Times, December 1, 1981.

    176.

    This group was established in 1999 at a time when the Clinton Administration sought to improve bilateral ties with the Ehud Barak government. See, Norman Kempster, "Clinton, Barak Agree on Plan to Strengthen Military Ties," Los Angeles Times, July 20, 1999.

    177.

    For example, see Section 1299M of P.L. 116-283, the William M. (Mac) Thornberry National Defense Authorization Act for FY2021.

    178.

    See, for example, U.S. Department of Defense, "Austin Deploys Missile Battery, Personnel to Israel," October 15, 2024.

    179.

    Judah Ari Gross, "In first, US establishes permanent military base in Israel," Times of Israel, September 17, 2018.

    180.

    Jeremy Binnie, "US building combined joint ops centre in Israel," Jane's Defense, July 14, 2021.

    181.

    P.L. 110-417, the Duncan Hunter National Defense Authorization Act for FY2009, authorized up to $89 million for the activation and deployment of the AN/TPY-2 forward-based X-band radar to a "classified location." In report language (H.Rept. 110-652) accompanying H.R. 5658, the House-passed FY2009 Defense Authorization bill, Members stated that "The State of Israel faces a real and growing threat from short- and medium-range ballistic missiles from states such as the Syrian Arab Republic and the Islamic Republic of Iran. The committee believes that the deployment of a U.S. Army-Navy/Transportable-2 (AN/TPY-2) missile defense discrimination radar to Israel would greatly increase the capabilities of both Israel and U.S. forces deployed in support of Israel to defend against ballistic missile threats. Therefore, the committee urges the Department of Defense to begin discussions with Israel about the possibility of deploying an AN/TPY-2 radar on its territory at the earliest feasible date." The Senate version, S. 3001, included an amendment making funds available for the deployment of the AN/TPY-2 forward-based X-band radar.

    182.

    Defense Security Cooperation Agency, "Israel – CH-53K Heavy Lift Helicopters with Support," Transmittal No. 21-52, July 30, 2021.

    183.

    U.S. Naval Air Systems Command, "Israel to purchase CH-53K King Stallion," NAVAIR News, January 4, 2022.

    184.

    Justin Katz, "Sikorsky awarded $2.7B contract for 35 CH-53K King Stallions, some bound for Israel," Breaking Defense, August 25, 2023.

    185.

    To access DSCA's Excess Defense Articles database, see http://www.dsca.mil/programs/eda.

    186.

    Excess Defense Articles Database Tool, Defense Security Cooperation Agency.

    187.

    U.S. Department of State, "U.S. Security Cooperation with Israel: Fact Sheet," January 20, 2025.

    188.

    See "Israel seeks to obtain the kind of Financial Aid that NATO Members get from U.S. Government," Wall Street Journal, February 3, 1987.

    189.

    See 22 U.S.C. §2321j.

    190.

    CRS Meeting with Missile Defense Agency, February 20, 2025.

    191.

    Israel also maintains its own proprietary missile defense platforms, such as Rafael's SPYDER air-defense system.

    192.

    Udi Shaham, "Israel, US developing Arrow-4," Jerusalem Post, February 19, 2021.

    193.

    Anna Ahronheim, "Lockheed Martin, Rafael Join Forces to Build 'Ground-Based' Laser Weapon," Jerusalem Post, July 28, 2021.

    194.

    In conference report language accompanying P.L. 112-239, the National Defense Authorization Act for FY2013, conferees agreed: "The Department of Defense needs to obtain appropriate data rights to Iron Dome technology to ensure us the ability to use that data for U.S. defense purposes and to explore potential co-production opportunities. The conferees support this policy and expect the Department to keep the congressional defense committees informed of developments and progress on this issue."

    195.

    The co-production agreement is formally titled, "Agreement Between the Department of Defense of the United States of America and the Ministry of Defense of the State of Israel Concerning Iron Dome Defense System Procurement."

    196.

    Testimony of Vice Admiral Jon A. Hill, USN, Director, Missile Defense Agency, House Armed Services Committee, Strategic Forces Subcommittee, April 18, 2023.

    197.

    The FY2014 Emergency Supplemental Appropriations Resolution, P.L. 113-145, exempted $225 million in Iron Dome funding—requested by Israel on an expedited basis during the summer 2014 Israel-Gaza conflict—from the co-production requirements agreed upon in March 2014.

    198.

    Rafael, Iron Dome Family, available at https://www.rafael.co.il/system/iron-dome/.

    199.

    Meredith Roaten, "MRIC nears end of FY2024 evaluation for US marines," Jane's Defence Weekly, July 29, 2024.

    200.

    In 2023, RTX and Rafael jointly announced a $33 million capital investment to establish an interceptor production facility at this location.

    201.

    Ashley Roque, "Marines eye 2025 fielding of 3 new, mobile air defense systems," Breaking Defense, May 3, 2024.

    202.

    This joint agreement is a Research, Development, Test and Evaluation (RDT&E) Framework agreement between the United States and Israel. The joint program to implement the agreement is known as the Short Range Ballistic Missile Defense (SRBMD) David's Sling Weapon System (DSWS) Project. The Department of Defense/U.S.-Israeli Cooperative Program Office manages the SRBMD/DSWS program, which is equitably funded between the United States and Israel.

    203.

    See Raytheon Missile and Defense, David's Sling System and SkyCeptor Missile at https://www.raytheonmissilesanddefense.com/capabilities/products/davidssling.

    204.

    Thomas Newdick, "Israel's Vaunted Integrated Air Defense System Explained," The War Zone, October 20, 2023.

    205.

    Shortly after the start of the Strategic Defense Initiative (SDI) in 1985, the Reagan Administration sought allied political support through various cooperative technology agreements on ballistic missile defense (BMD). A memorandum of understanding was signed with Israel on May 6, 1986, to jointly develop an indigenous Israeli capability to defend against ballistic missiles. Subsequently, a number of additional agreements were signed, including, for example, an April 1989 Memorandum of Agreement (MOA) to develop an Israeli computer facility as part of the Arrow BMD program, a June 1991 agreement to develop a second-generation Arrow BMD capability, and a September 2008 agreement to develop a short-range BMD system to defend against very short-range missiles and rockets. Israeli interest in BMD was strengthened by the missile war between Iran and Iraq in the later 1980s, and the experience of being attacked by Scud missiles from Iraq during Operation Desert Storm in 1991.

    206.

    For additional information on THAAD see CRS In Focus IF12645, The Terminal High Altitude Area Defense (THAAD) System.

    207.

    In July 2010, the United States and Israel signed a bilateral agreement (The Upper-Tier Interceptor Project Agreement) to extend their cooperation in developing and producing the Arrow III, including an equitable U.S.-Israeli cost share.

    208.

    Gareth Jennings, "Israel to deploy protective 'laser wall', likely Iron Beam," Jane's Defence Weekly, February 2, 2022.

    209.

    "Israel says laser missile shield to cost just $2 per interception," Reuters, June 1, 2022.

    210.

    Yaakov Lappin, "Israeli PM announces 'laser wall' air defence plan," Jane's Defence Weekly, February 2, 2022.

    211.

    Lockheed Martin press release, "Lockheed Martin and Rafael Advanced Defense Systems to Collaborate on High-Energy Laser System," December 5, 2022.

    212.

    "US initiates $5.2 billion aid package to strengthen Israel's air defenses," Israel National News (Arutz Sheva), October 21, 2024.

    213.

    Emanuel Fabian, "IDF: 9,500 rockets fired at Israel since Oct. 7, including 3,000 in 1st hours of onslaught," Times of Israel, November 9, 2023.

    214.

    Israeli Ministry of Foreign Affairs, Swords of Iron: Civilian Casualties, Updated to January 10, 2025.

    215.

    "The October 7 Massacre: Explained," The Israeli Defense Forces, October 6, 2024.

    216.

    "Israel refuses to publish Iron Dome rate of successful interceptions so far," All Israel News, October 26, 2023.

    217.

    For example, see Jewish Institute for National Security of America (JINSA), "Iran Projectile Tracker"; Armed Conflict Location & Event Data (ACLED), "Key figures on attacks by and against Israel since 7 October 2023,"; and the Institute for National Security Studies (INSS), "Swords of Iron: An Overview."

    218.

    Arrow II and Arrow III began intercepting missiles fired by the Houthis from Yemen in October and November 2023. Arrow II and III also were used to defend against Iran's direct attacks on Israel. David's Sling intercepted a Hezbollah missile headed toward Tel Aviv in fall 2024.

    219.

    For example, see Sam Lagrone, "SM-3 Ballistic Missile Interceptor Used for First Time in Combat, Officials Confirm," USNI News, April 15, 2024.

    220.

    U.S. Army, "U.S. Deploys THAAD to Israel," March 15, 2019.

    221.

    Agnes Chang and Samuel Granados, "How Missile Defense Works (and Why It Fails)," New York Times, November 2, 2024.

    222.

    Testimony of Lieutenant General Heath A. Collins, USAF, Director, Missile Defense Agency, Before the House Armed Services Committee, Strategic Forces Subcommittee, April 30, 2025.

    223.

    See, "Israel's Missile Defense Engagements Since October 7th," Interview with Moshe Patel, director of the Israeli Missile Defense Organization, Center for Strategic and International Studies (CSIS), July 12, 2024.

    224.

    Lior Ohana, "'There are nights we'll never forget': Up close with the Arrow air defense system," YnetNews.com, January 13, 2025.

    225.

    Yossi Yehoshua, "'Second Arrow needed': IDF reviews strategy amid Houthi escalation," YnetNews.com, December 21, 2024.

    226.

    Udi Etzion, "Faulty systems or surprise: Why hasn't IAF intercepted missiles aimed at central Israel? – analysis," Jerusalem Post, December 21, 2024.

    227.

    Thomas Newdick, Tyler Rogoway, "Clearer Picture Of Damage To Israeli Airbase From Iranian Ballistic Missiles Emerges," The War Zone, October 4, 2024.

    228.

    See, https://besacenter.org/the-gaza-terror-offensive-october-7-8-2023/.

    229.

    Alistair MacDonald, Doug Cameron and Heather Somerville, "Drone, Missile Warfare Tests Strapped Defense Systems," Wall Street Journal, April 18, 2024.

    230.

    For example, see these estimates by the Missile Defense Advocacy Alliance at https://missiledefenseadvocacy.org/missile-defense-systems-2/missile-defense-systems/missile-interceptors-by-cost/.

    231.

    Galit Altstein, "Foiling Iran's Missile Attack Probably Cost More Than $1 Billion," Bloomberg, April 17, 2024.

    232.

    Jonas Roth, Adina Renner, Ida Götz, "Israel has shot down tens of thousands of rockets over the last year. How much did it cost?" NZZ, December 23, 2024.

    233.

    Udi Ezion, "'Defense is more expensive than offense': The cost of Iran's missile attack and Israel's defense," Jerusalem Post, October 4, 2024.

    234.

    "U.S. - Israel Strategic Link: Both Sides Take Stock," New York Times, October 2, 1981.

    235.

    "U.S. Tells Israel it Plans to Sell Saudis 300 Tanks," New York Times, September 29, 1989.

    236.

    In October 1989, the United States and Israel agreed to pre-position $100 million worth of defense equipment in Israel accessible by both countries.

    237.

    "U.S. Defends Supplying Israel Ammunition during Gaza Conflict," Reuters, July 31, 2014.

    238.

    Eric Schmitt, Adam Entous, Ronen Bergman, John Ismay, and Thomas Gibbons-Neff, "Pentagon Sends U.S. Arms Stored in Israel to Ukraine," New York Times, January 17, 2023.

    239.

    Barak Ravid, "U.S. sends weapons stored in Israel to Ukraine," Axios, January 18, 2023.

    240.

    Barak Ravid, "U.S. sending dozens of Patriot missiles from Israel to Ukraine," Axios, January 29, 2025.

    241.

    Defense Security Cooperation Agency, "Israel—M830a1 120mm Tank Cartridges," December 9, 2023.

    242.

    Alex Gangitano, "Senate Democrats scoff at Biden's Israel arms sale," The Hill, January 3, 2024. See also, "Senator Risch Letter to Blinken," Senate Foreign Relations Committee, January 26, 2024.

    243.

    David Schenker, "Best Friends Don't Have to Ask," Politico Magazine, August 14, 2014.

    244.

    Harry Davies and Manisha Ganguly, "Gaza war puts US's extensive weapons stockpile in Israel under scrutiny," The Guardian, December 27, 2023.

    245.

    See, Markup before the Committee on International Relations, House of Representatives, 108th Cong., 1st sess., On H.R. 1950 and H.Con.Res. 160, May 7 and 8, 2003 and S. Rept. No. 108-56 to accompany S. 1161, the Foreign Assistance Authorization Act, FY2004.

    246.

    Section 1273 of P.L. 115-232, the John S. McCain National Defense Authorization Act for FY2019, first authorized the President to conduct a joint assessment of the quantity and type of PGMs necessary for Israel in the event of a prolonged war.

    247.

    Shortly after the October 7 attacks, Rep. Chip Roy called on the Defense Department to provide information about the contents of the stockpile. See, Representative Chip Roy, "Rep. Roy demands full accounting from Pentagon on US arms stockpiled for Israel," October 30, 2023. Annual reporting to Congress on the contents of pre-positioned war reserve materiel (PWRM) globally exclude treatment of WRSA. See, U.S. Defense Department Directive 3110.07 (Glossary).

    248.

    Admiral James Stavridis, "Sending 'Dumb' Weapons from Israel to Ukraine is Smart," Bloomberg, January 25, 2023.

    249.

    Defense Institute of Security Assistance Management (DISAM), DISAM's Online Greenbook, Chapter 2, Security Legislation and Policy.

    250.

    22 U.S.C. 2321h. In the Foreign Assistance Act of 1961 as amended, see Section 514(b)(2)(A) for the global cap and Section 514(b)(2)(B) for the Israel-specific cap. The Defense Department could use both funding authorities to add materiel to WRSA-I.

    251.

    The United States and Israel have a bilateral agreement that governs the storage, maintenance, in-country transit, and other WRSA-related costs. The government of Israel, using both its national funds and FMF, pays for the construction, maintenance and refurbishment costs of WRSA ammunition storage facilities. It also pays for the packaging, crating, handling and transportation of armaments to and from the stockpile. CRS exchange with EUCOM and DSCA officials, April 2012.

    252.

    U.S. Department of Defense, Office of Inspector General, "Audit of DoD's Accountability Controls Over War Reserve Stockpile Allies–Israel," June 10, 2024.

    253.

    Section 1279 of P.L. 116-92, the FY2020 National Defense Authorization Act, extended the authority of the anti-tunnel cooperation program through December 31, 2024.

    254.

    In the 118th Congress, Section 1206 of S. 4638, the Senate version of the FY2025 NDAA, would have raised the spending cap on the counter-tunnel program from $50 to $80 million. The House bill had no such provision. The Joint Explanatory Statement accompanying P.L. 118-159, the FY2025 NDAA, includes the Senate provision, thereby raising the cap since the explanatory statement "shall have the same effect with respect to the implementation of this legislation as if it were a joint explanatory statement of a committee of conference." See Servicemember Quality of Life Improvement and National Defense Authorization Act for FY2025, Legislative Text and Joint Explanatory Statement, To Accompany H.R. 5009, P.L. 118-159.

    255.

    U. S. Department of Defense, FY2024 Budget Estimates, Research, Development, Test & Evaluation, Defense-Wide (unclassified), March 2023.

    256.

    Majd Abuamer, "Gaza's Subterranean Warfare: Palestinian Resistance Tunnels vs. Israel's Military Strategy," Studies in Conflict and Terrorism, May 5, 2024; "10 Things to Know About Hamas Tunnels," Foundation for the Defense of Democracies, November 6, 2023.

    257.

    "Inside the tunnels of Gaza," Reuters, December 31, 2023.

    258.

    See, for example, John Spencer, "Israel's New Approach to Tunnels: A Paradigm Shift in Underground Warfare," Modern War Institute, December 2, 2024.

    259.

    Ilan Ben Zion, "As Attack Drones Multiply, Israeli Firms Develop Defenses," Associated Press, September 26, 2019.

    260.

    "Why Drones Are Becoming Iran's Weapons of Choice," The Economist, November 10, 2021.

    261.

    See Section 1272 of P.L. 115-232, the John S. McCain National Defense Authorization Act for FY2019.

    262.

    Section 1280 of P.L. 116-283, the 2021 NDAA, stated that the Defense Department may establish a program to carry out "research, development, test, and evaluation activities, on a joint basis with Israel, to promote directed energy capabilities of mutual benefit to both the United States and Israel." Section 1254 of P.L. 118-31, the FY2024 NDAA, further modified the authorization for U.S.-Israeli cooperation on directed energy capabilities.

    263.

    U.S. Department of Defense, Irregular Warfare Technical Support Directorate, Broad Agency Announcement, 24S4008, March 29, 2024.

    264.

    Seth J. Frantzman, "Israel's Smart Shooter wins US Army contract for anti-drone optics," C4ISRNET, October 12, 2022.

    265.

    Yaakov Lappin, "IAI unveils Point Blank manportable loitering munition," Jane's Defence Weekly, January 23, 2023.

    266.

    House Committee on Appropriations, Report accompanying H.R. 8774, the Department of Defense Appropriations Bill 2025, June 17, 2024; and House Committee on Appropriations, Report accompanying H.R. 4365, the Department of Defense Appropriations Bill 2024, June 27, 2023.

    267.

    For more on this topic, see CRS In Focus IF11197, U.S. Arms Sales and Human Rights: Legislative Basis and Frequently Asked Questions, by Paul K. Kerr and Liana W. Rosen.

    268.

    U.S. State Department, Treaties in Force, Agreement relating to mutual defense assistance, Entered into force July 23, 1952; TIAS 2675.

    269.

    Pursuant to the AECA, when Israel, like other foreign nations, purchases U.S. defense articles and services, it must sign a Letter of Offer and Acceptance (LOA) with the United States government. The LOA lists the items and/or services, estimated costs, and the terms and conditions of sale. Unless otherwise specified, the standard terms and conditions for Israel are consistent with the general terms for all U.S. arms sales abroad. For a sample LOA, see Defense Security Cooperation Agency, Security Assistance Management Manual, available at https://www.samm.dsca.mil/figure/figure-c5f4.

    270.

    See CRS In Focus IF11533, Modifying or Ending Sales of U.S.-Origin Defense Articles, by Paul K. Kerr and Liana W. Rosen, and CRS In Focus IF10392, Foreign Military Sales Congressional Review Process, by Paul K. Kerr.

    271.

    For example, see (among other sections), Section 502B, Human Rights (22 U.S.C. §2304), Section 505, Conditions of Eligibility (22 U.S.C. §2314), and Section 511, Considerations in Furnishing Military Assistance (22 U.S.C. §2321d).

    272.

    op.cit., (CRS In Focus IF11197, U.S. Arms Sales and Human Rights: Legislative Basis and Frequently Asked Questions).

    273.

    The scale and nature of annual military aid to recipients such as Israel, Egypt, and Ukraine may at times be too broad for the U.S. State and/or Defense Department bureaucracies to identify individual users of U.S. defense equipment prior to its transfer.

    274.

    U.S. Department of State, Treaties in Force, "Foreign Assistance, Agreement Between the United States of America and Israel," Entered into force December 30, 2021, Treaties and Other International Acts Series 21-1230.1.

    275.

    Patrick Leahy, "I created the Leahy law. It should be applied to Israel," Washington Post, May 20, 2024.

    276.

    Bryant Harris, "Pressure mounts on Biden to leverage human rights laws on Israel aid," Defense News, January 8, 2024.

    277.

    See, Stephanie Kirchgaessner, "Different rules': special policies keep US supplying weapons to Israel despite alleged abuses," The Guardian (UK), January 18, 2024.

    278.

    U.S. Department of State, Remarks, Antony J. Blinken, Secretary of State, April 22, 2024.

    279.

    "US State Department officials were 'hostile' towards Israel during war, former envoy says – report," Jerusalem Post, March 2, 2025.

    280.

    Missy Ryan, "U.S. declined to sanction Israeli military units over abuse finding," Washington Post, February 28, 2025.

    281.

    Ruth Levush, "Israel: Reservist Convicted by Military Court of Abusing Detainees," Global Legal Monitor, Law Library of Congress, February 11, 2025.

    282.

    Emanuel Fabian and Jeremy Sharon, "5 IDF reservists indicted for severe abuse of Palestinian detainee at Sde Teiman," Times of Israel, February 19, 2025.

    283.

    Charles O. (Cob) Blaha, "Israel and the Leahy Law," Just Security, June 10, 2024.

    284.

    U.S. Department of State, "About the Leahy Law: Fact Sheet," January 20, 2025.

    285.

    Section 620I made permanent a similar restriction that had been included as a year-to-year prohibition on the use of appropriated funds in previous appropriations acts.

    286.

    See CBS News, "U.S. tells Israel, boost humanitarian aid to Gaza or risk losing weapons funding," October 15, 2024.

    287.

    Representative Joaquin Castro, "As Humanitarian Crisis Mounts in Gaza, Senior House Democrats Urge President Biden to Enforce U.S. Law on Security Assistance to Israel," March 23, 2024; and "Reps. Crow, Dean, Houlahan Lead 74 Colleagues in Letter to the Biden Administration Seeking Assessment of Israel's Compliance with US Laws and Policies," December 12, 2024.

    288.

    This stipulation is found in grant agreements between the U.S. State Department's Bureau of Population, Refugees, and Migration (PRM) and United Israel Appeal (clause 8. F. 2—Use in Territories Subject to the Administration of the State of Israel Prior to June 1967).

    289.

    See, Article VIII Paragraph D, Agreement between the Government of the United States of America and the Government of Israel Establishing the Israel-United States Binational Industrial Research and Development Foundation.

    290.

    Protocol Amending the Agreement Establishing the United States-Israel Binational Industrial Research and Development Foundation and the September 27, 1972 Exchange of Letters Related to the Agreement on the United States-Israel Binational Science Foundation and with Respect to the Agreement to Establish the United States-Israel Agricultural Research and Development Fund, October 28, 2020.

    291.

    CRS Correspondence with U.S. Department of State, Office of Israeli and Palestinian Affairs (NEA/IPA), June 26, 2023 and U.S. Department of State, Department Press Briefing, June 26, 2023.

    292.

    See U.S. Department of State, "Third Party Transfer Process and Documentation," Bureau of Political-Military Affairs, December 17, 2018.

    293.

    See Defense Institute of Security Cooperation Studies, "The Management of Security Cooperation (Green Book)," edition 39, January 2019.

    294.

    Representative Callahan of Alabama, then chairman of the Foreign Operations Subcommittee of the House Appropriations Committee, told a hearing on April 6, 2000, that he would block $250 million in FY2001 military assistance to Israel unless Israel cancelled the PHALCON sale to China. Representative Callahan offered an amendment during a June 20 subcommittee markup to withhold $250 million from the $2.88 billion in total economic and military assistance proposed for Israel for FY2001, but the amendment failed by a vote of nine to six. See "Israel-China Radar Deal Opposed," Washington Post, April 7, 2000 and "U.S. Congressman: We'll Block Israeli Aid Unless China Deal Cancelled," Jerusalem Post, April 7, 2000.

    295.

    "Israel, U.S. Draft Agreement for Openness, Equality in Arms Deals," Ha'aretz, June 27, 2005.

    296.

    Yitzhak Shichor, "Out of Proportion: Israel's Paradox in China's Middle Eastern Policy," Middle East Policy, February 18, 2025.

    297.

    Yossi Melman, "Wary of China, Vietnam to Buy Two Spy Satellites from Israel," Ha'aretz, March 2, 2025.

    298.

    Divya Malhotra, "Israel-China economic diplomacy: The limits following the Hamas attack on Israel – opinion," Jerusalem Post, March 3, 2025.

    299.

    Arie Egozi, "Israelis Create Foreign Investment Overseer; China Targeted," Breaking Defense, November 13, 2019.

    300.

    Efron et al., Chinese Investment in Israeli Technology, 2020, pp. 24-25.

    301.

    U.S. Department of State, "2024 Investment Climate Statements: Israel"; "The Great Wall of China – Increasing Difficulty in Doing Business with China," JDSupra, November 10, 2022.

    302.

    "Amid US pressure, Israel taps local firm over China for $1.5b desalination plant," Times of Israel, May 26, 2020.

    303.

    Hiddai Segev and Assaf Orion, "The Great Power Competition over 5G Communications: Limited Success for the American Campaign against Huawei," Institute for National Security Studies, March 3, 2020.

    304.

    Yuval Sadeh, "Shin Bet and National Intelligence Service investigate Chinese company's involvement in Jerusalem light rail work," Mako (Israel), February 25, 2025. See also, Asad Zagrizak, "Israel sends mixed messages to China on infrastructure projects," Globes, April 29, 2025.

    305.

    Jack Detsch, "Pentagon repeats warning to Israel on Chinese port deal," Al-Monitor, August 7, 2019 and Arie Egozi, "US Presses Israel on Haifa Port amid China Espionage Concerns: Sources," Breaking Defense, October 5, 2021.

    306.

    Asaf Zagrizak, "New regulation for Israel's ports underway," Globes, March 2, 2025.

    307.

    The MRA account is authorized by 22 U.S.C. §2601. Funding for the account comes from appropriations in the foreign operations appropriations bill.

    308. The Jewish Agency for Israel's website is available at http://www.jafi.org.il/. 309.

    The loan guarantee request accompanied a request for an additional $4 billion in military grants to help Israel prepare for possible attacks during an anticipated U.S. war with Iraq.

    310.

    According to P.L. 108-11, "[Loan] guarantees may be issued under this section only to support activities in the geographic areas which were subject to the administration of the Government of Israel before June 5, 1967: Provided further, That the amount of guarantees that may be issued shall be reduced by an amount equal to the amount extended or estimated to have been extended by the Government of Israel during the period from March 1, 2003, to the date of issue of the guarantee, for activities which the President determines are inconsistent with the objectives and understandings reached between the United States and the Government of Israel regarding the implementation of the loan guarantee program: Provided further, That the President shall submit a report to Congress no later than September 30 of each fiscal year during the pendency of the program specifying the amount calculated under the preceding proviso and that will be deducted from the amount of guarantees authorized to be issued in the next fiscal year."

    311.

    U.S. Department of State, "Boucher Cites Concerns over Settlement Building and Security Fence Route," State Department Press Releases and Documents, November 26, 2003.

    312.

    This includes $1.6 billion in FY2003; $1.75 billion in FY2004; and $750 million in FY2005.

    313.

    See Section 7034(k)(6) of P.L. 118-47, the Further Consolidated Appropriations Act, 2024.

    314.

    See https://acsz.org/usaid-asha/.

    315.

    See https://nazarethproject.org/wp-content/uploads/2024/11/fall2024News-final-1.pdf.

    316.

    With the exception of funding for specific fields of research (for example, see "U.S.-Israeli Energy Cooperation" section), Congress has not appropriated funding directly to the binational foundations for operational expenses since the mid-1980s. The foundations have been able to sustain grant making with interest earned from their respective endowments and fees (repayments) collected from companies who successfully profited after receiving research support from the foundations. Since its founding, BIRD has received $117 million in fees from 477 companies.

    317.

    See https://www.birdf.com/. Congress helped establish BIRD's endowment with appropriations of $30 million and $15 million in 1977 (P.L. 95-26) and 1985 (P.L. 98-473), respectively. These grants were matched by the Israeli government for a total endowment of $90 million.

    318.

    Eitan Ydilevich, "Building U.S.-Israel Economic Partnerships, The BIRD Model," Washington, DC, June 10, 2010, p. 2.

    319.

    BIRD Foundation, "What is BIRD?" available at https://www.birdf.com/what-is-bird/.

    320. See https://www.bsf.org.il/. In 1972 and 1984, the United States and Israel contributed a total of $100 million ($50 million each) for BSF's endowment. The U.S. share ($50 million) first came in 1972 in the form of a $30 million accelerated Israeli repayment of earlier food aid debt to the United States. A second tranche followed in 1984 with $20 million congressional appropriation (P.L. 98-473). According to the treaty establishing the Foundation, the Foundation shall use the interest, as well as any funds derived from its activities, for the operations of the Foundation. 321.

    See https://www.bsf.org.il/about/scientific-achievements/.

    322.

    Congress originally authorized BARD in Section 1458(e) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. §3291(e)).

    323. See http://www.bard-isus.com/. Congress helped establish BARD's endowment with appropriations of $40 million and $15 million in 1979 (P.L. 95-481) and 1985 (P.L. 98-473), respectively. These grants were matched by the State of Israel for a total endowment of $110 million. 324.

    CRS correspondence with Center for International Programs (CIP), National Institute of Food and Agriculture, on May 1, 2024.

    325.

    See, H.Rept. 118-124, Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill, 2024. Division B of the Joint Explanatory Statement accompanying P.L. 118-42, the Consolidated Appropriations Act, 2024 states that the language set forth in H.Rept. 118-124 and S.Rept. 118-44 carries the same weight as language included in this joint explanatory statement.

    326.

    See https://innovationisrael.org.il/en/calls_for_proposal/bard-fund-food-and-nutrition-academic-collaborations/.

    327. See http://usistf.org/. The U.S.-Israel Science and Technology Commission (USISTC) was established in 1993 to facilitate cooperative ventures between high tech industries in the two countries. The goal of the program is to "to maximize the contribution of technology to economic growth." The U.S. and Israeli governments each committed $15 million to the effort over three years for a total of $30 million. 328.

    Congress first considered authorizing a program to expand U.S.-Israeli scientific cooperation in the field of renewable energy in legislation entitled, The United States-Israel Energy Cooperation Act (H.R. 1838—110th Congress).

    329.

    Congress specifies funds for BIRD Energy in conference report language accompanying energy and water appropriations legislation. For FY2024, see Joint Explanatory Statement for Consolidated Appropriations Act, 2024; S.Rept. 118-72, and H.Rept. 118-126, H.R. 4394.

    330.

    P.L. 113-296, the United States-Israel Strategic Partnership Act of 2014 (Section 12d), first authorized the creation of a joint United States-Israel Energy Center. The Energy Center was then first independently authorized as its own entity in Section 1280A(e) of the William M. (Mac) Thornberry National Defense Authorization Act for FY2021 (22 U.S.C. 8607(e)).

    331.

    For FY2024, see Joint Explanatory Statement for Consolidated Appropriations Act, 2024; S.Rept. 118-72, and H.Rept. 118-126, H.R. 4394.

    332.

    P.L. 114-322, the WIIN Act (Water Infrastructure Improvements for the Nation Act), called on the White House Office of Science and Technology Policy to develop a coordinated strategic plan that, among other things, strengthened "research and development cooperation with international partners, such as the State of Israel, in the area of desalination technology."

    333.

    The U.S.-Israel Strategic Partnership Act (P.L. 113-296) authorized the Secretary of Homeland Security, acting through the Director of the Homeland Security Advanced Research Projects Agency and with the concurrence of the Secretary of State, to enter into cooperative research pilot programs with Israel to enhance Israel's capabilities in border, maritime, and aviation security, explosives detection, and emergency services. In 2016, Congress passed P.L. 114-304, the United States-Israel Advanced Research Partnership Act of 2016, a law that permanently authorized the expansion of BIRD HLS to include cybersecurity technologies.

    334.

    See H.Rept. 118-123 - Department of Homeland Security Appropriations Bill, 2024 (H.R. 4367). Division C of the Joint Explanatory Statement accompanying P.L. 118-47, the Further Consolidated Appropriations Act, 2024, encourage the Department of Homeland Security to continue supporting the BIRD HLS program, which "allows S&T to work with Israeli partners to develop innovative technology solutions for homeland security needs."

    335.

    Sarah Zheng and Coco Liu, "The US Is Thwarting China's Love Affair With Israeli Tech," Bloomberg, July 12, 2022.

    336.

    Yonah Jeremy Bob, "US- Israel joint cybersecurity investment announced," Jerusalem Post, July 4, 2022.

    337.

    See H.Rept. 118-123 - Department of Homeland Security Appropriations Bill, 2024 (H.R. 4367). Division C of the Joint Explanatory Statement accompanying P.L. 118-47, the Further Consolidated Appropriations Act, 2024, encourage the Department of Homeland Security to continue supporting the U.S.-Israel Cybersecurity Cooperation enhancement program to "support cybersecurity research and development and demonstration and commercialization of cybersecurity technology."

    338.

    See Section 307 of P.L. 99-83, the International Security and Development Cooperation Act of 1985 and P.L. 98-473, the FY1985 Continuing Appropriations Act. This original legislative concept for U.S.-Israeli cooperation in international development came from the 98th Congress and was based on H.R. 5424, "A bill to provide for joint United States-Israeli development assistance projects."

    339.

    USAID partnered with Mashav, Israel's Agency for International Development Cooperation in the Ministry of Foreign Affairs.

    340.

    See Subcommittee on Foreign Operations, Export Financing, Related Programs, House Committee on Appropriations, Hearings on Foreign Operations, Export Financing, and Related Program, FY2004.

    341.

    See Division F of the Joint Explanatory Statement accompanying P.L. 118-47, the Further Consolidated Appropriations Act, 2024. Lawmakers specified $3 million for USAID-Israel Development Cooperation.

    342.

    U.S.-Israeli health cooperation is long-standing. Since 1978, medical and health researchers from the U.S. Army and Israel Defense Forces have held the biennial Shoresh conference to share information on military operational medicine, infectious disease, and combat care. See, U.S. Army, U.S. and Israeli Collaboration at 20th Shoresh Meeting Promotes Advancement of CBRN Medical Countermeasure Development, December 8, 2022.

    343.

    See Division D of the Joint Explanatory Statement accompanying P.L. 118-47, the Further Consolidated Appropriations Act, 2024. The Preparedness and Response Innovation program is a cooperative research and development program for health technologies broadly. In the 118th Congress, in the explanatory materials accompanying H.R. 5894, the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations bill, lawmakers directed $4 million toward a bilateral cooperative program with the Government of Israel for the development of health technologies.

    344.

    See https://researchfunding.duke.edu/aspr-preparedness-and-response-innovation-pri-israeli-bilateral-health-cooperative-program. Reorganization of the U.S. Department of Health and Human Services announced in March 2025 would move the Administration for Strategic Preparedness and Response to the Centers for Disease Control and Prevention.

    345.

    See Division H of the FY2023 Consolidated Appropriations Act.

    346.

    Congress authorized FMF for Israel for every fiscal year through FY2028 in P.L. 116-283, the William M. (Mac) Thornberry National Defense Authorization Act for FY2021.