Israel to seek new security deal with the US, senior defense official says

Israel is preparing for talks with the Trump administration on a new 10-year security deal, seeking to extend US military support even as Israeli leaders signal they are planning for a future with reduced American cash grants, the Financial Times reports.

Gil Pinchas, speaking to the FT before stepping down as chief financial adviser to Israel’s military and defense ministry, says Israel would seek to prioritize joint military and defense projects over cash handouts in talks that he expected to take place in the coming weeks.

“The partnership is more important than just the net financial issue in this context  … there are a lot of things that are equal to money,” Pinchas tells the FT. “The view of this needs to be wider.”

Pinchas says pure financial support – or “free money” – worth $3.3 billion a year, which Israel can use to purchase US weapons, was “one component of the MOU (that) could decrease gradually.”

In 2016, the U.S. and Israeli governments signed a memorandum of understanding for the 10 years through September 2028 that provides $38 billion in military aid, $33 billion in grants to buy military equipment and $5 billion for missile defense systems.

Earlier this month, Prime Minister Benjamin Netanyahu said he hoped to “taper off” Israeli dependence on US military aid in the next decade.

The US committed to providing billions in military assistance to Israel and Egypt each year when they signed their 1979 US-brokered peace treaty.

While US aid once made up a significant chunk of Israel’s military spending, the percentage it makes up of those funds has significantly declined in recent years as Israel’s economy has flourished.