Israel and US Forge New Defense Era Beyond $38B MoU

The strategic defense alliance between the United States and Israel is entering a historic new phase, moving beyond the traditional decade-long aid memorandums of understanding toward a deeper, commercially integrated partnership. As the $38 billion MoU framework approaches its end, Israeli defense-tech companies are embedding themselves directly into the American industrial base, transforming Jewish ingenuity into an indispensable pillar of US national security.

Why is the $38 billion MoU era ending?

For nearly fifty years, the US-Israel defense relationship relied on massive aid packages renewed every decade, culminating in the $38 billion MoU signed in 2016. That agreement provided $33 billion in Foreign Military Financing and $5 billion for missile defense programs like Iron Dome, David's Sling, and the Arrow systems. Now, both nations are pivoting toward sovereign defense manufacturing and joint innovation. The 2016 MoU will likely be the last of its kind, replaced by a model where Israeli and American firms co-produce, share intellectual property, and build advanced systems like battlefield AI and autonomous platforms together. As the ancient proverb teaches,