After months of negotiating, the United States and Israel have signed a huge, $38 billion deal for military aid to the Jewish state — with some changes from previous pacts between the countries.
The 10-year agreement is the largest in U.S. history, with a significant portion of the money expected to be used to upgrade Israel’s air force to Lockheed Martin’s F-35 fighter aircraft.
But while the actual memorandum of understanding hasn’t been officially released by either country, it has a number of conditions that are different from previous U.S.-Israel aid deals.
Most importantly, it’s structured so that more Israeli defense spending goes to U.S. companies. Israel’s long-standing special arrangement for funds from the United States previously allowed Israel to spend 26 percent of the money in Israel — on Israeli-made defense products. But that provision is being phased out over the first five years of the deal.