US pledges $38-bn military aid to Israel

The  Memorandum  of  Understanding (MoU) between the US and Israel is the "largest single pledge of military assistance in US history". The commitment of $38 bn over 10 years (2019-2028) includes $33 bn in foreign military financing and $5 bn in missile defence assistance. This unprecedented and formidable military package will be a notable part of Barack Obama's legacy. The stated objective is to bolster Israel's security by updating its aircraft fleet, strengthening its missile defence, and facilitating acquisition of additional defence capabilities. Since President Obama took office, the US has provided almost $24bn, including investment in Iron Dome and other missile defence systems, and given the Israeli Air Force F-35 fighter jets.

Analysts have remarked that this agreement represents shifts in the relationship between Washington and Tel Aviv, or have opined that it supports Israel's security while opposing its policies. Nevertheless, the sheer size ofthe deal implies Certain  policy decisions and assumptions. What are these less overt — though overarching — messages to the world?

The new agreement will be a departure from the previous arrangement in a number of respects. Not only will it feature a significant boost in funding, but it will include changes that bring it more in line with US military aid packages to other countries. The process also involves big concessions granted by Israeli PM Benjamin Netanyahu, which includes Israel's agreement to not seek additional funding from the US Congress beyond what is guaranteed in the new pact. Israel has long been a major recipient of US aid, mostly in the form of military assistance against a backdrop of an ebbing and flowing conflict with the Palestinians and Israel's neighbours, as well as threats from Iran.

Israel has agreed to a gradual phasing out of the practice by which as much as 26 per cent of the US aid could be spent on contracts with Israeli defence industries. Instead, all the aid will have to be spent on US defence contractors who will supply Israel. The new deal will also phase out a special provision that allowed Israel to use about a quarter of the money to bud Israeli arms, an exception once intended to strengthen the small state's defence industry. Now, with Israel, a robust arms exporter, competing with American firms, it will have to use the American money to buy American military systems, just as other aid recipients are required to do.

In previous deals, Israel has also been able to spend up to 13 per cent of US aid on military fuel, a practice that will end with this new agreement. The new agreement will also include a decade's worth of funding for Israeli missile defence and a pledge from Israel that it will not lobby Congress for extra money for the programme. In the past, funding for Israel's missile defence was provided in addition to the existing military aid of the agreement.

 

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