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  • Israel prepares to 'taper off' $38b defense package with US by 2036 | LIVE BLOG

Israel prepares to 'taper off' $38b defense package with US by 2036 | LIVE BLOG


Israel is moving to prioritize joint defense projects and technological cooperation over direct U.S. military cash, as the current $38 billion aid deal nears 2028

i24NEWS
i24NEWS
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Illustration - Military equipment supplied by the United States arriving in Israel
Illustration - Military equipment supplied by the United States arriving in IsraelDefense ministry

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Israel prepares to negotiate a new ten-year security agreement with the United States

Israel is preparing to begin talks with the United States on a new 10-year security agreement to replace the current memorandum of understanding, which expires in September 2028, the Financial Times reports . The Jewish state wants to extend US military support while preparing for a gradual reduction in direct financial aid. According to Gil Pinchas, outgoing financial advisor to the Israeli Ministry of Defense, future negotiations should prioritize joint military and industrial projects over cash subsidies. Currently, US aid includes approximately $3.3 billion annually for the purchase of American weapons, under a 2016 agreement totaling $38 billion. This financial component could decrease over time. In early January, Prime Minister Benjamin Netanyahu had already expressed his desire to reduce Israel's dependence on American military aid over the next decade, as the share of this aid in the Israeli defense budget has declined significantly with the growth of the country's economy.

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