U.S. Foreign Aid to Israel
Congressional Research Service
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