Official Jerusalem wants to reduce dependence on the Pentagon.
Israel is interested in concluding a new 10-year security agreement with the US, which is intended to provide a framework for American military assistance for years to come. The Financial Times reports that Jerusalem is preparing for negotiations with the administration of US President Donald Trump on this issue.
The current memorandum of understanding between the US and Israel regarding military assistance is valid until 2028. Under the current package, Washington has committed to providing Israel with $38 billion in assistance for the 2019-2028 fiscal years (including funding for arms purchases in the US and separate items for missile defense).
A key element of the discussion, according to FT, is the format of future support. Israeli leadership is considering a scenario in which the country gradually moves away from "cash grants" (primarily from Foreign Military Financing – funds directed towards the purchase of American weapons), focusing instead on joint projects and technological cooperation.
The publication cites the position of former chief financial advisor to the Israeli Ministry of Defense, Brigadier General (retired) Gil Pinchas, who advocates prioritizing cooperation programs – such as the Iron Dome and David's Sling missile defense systems – over direct budget transfers.
The topic of the future agreement is developing against the backdrop of statements by Prime Minister Benjamin Netanyahu about the intention to reduce Israel's dependence on American military assistance over the next decade, even down to "zeroing it out." He discussed such plans in an interview with The Economist. Against this backdrop, Israel is discussing significant investments in its own defense industry.
The Financial Times links the negotiation agenda to the increase in Israel's defense spending amid prolonged combat operations in recent years and the need for long-term planning of arms procurement and development. The article also notes that Israel intends to gradually reduce the share of defense spending from its military peak to a more "normal" level, although the needs for modernization and stockpiles remain high.
Another factor is American domestic politics. Even with a framework agreement, funds for assistance programs typically require annual approval from the US Congress during the appropriations process. For Israel, such arrangements are important as a mechanism of "predictability" – to allow for planning multi-year procurements and large-scale rearmament projects.
