U.S., Israel sign $38B military aid deal

WASHINGTON — The United States and Israel have signed a new aid deal that will give the Israeli military $38 billion over the course of 10 years. It’s the largest such agreement the U.S. has ever had with any country.

After months of negotiations, the unprecedented deal was signed at the State Department on Wednesday.

The aid totals $3.8 billion a year — up from $3.1 billion the U.S. gave Israel annually under the current 10-year deal that expires in 2018.

Under the agreement, Israel’s ability to spend part of the funds on Israeli military products will be phased out, eventually requiring all of the funds to be spent on American military industries.

Israel’s preference for spending some of the funds internally had been a major sticking point in the deal.

“This commitment to Israel’s security has been unwavering and is based on a genuine and abiding concern for the welfare of the Israeli people and the future of the state of Israel,” President Barack Obama said in a statement.

After months of negotiations that took place after a particularly tense time in the relationship amid disputes over the Iran nuclear deal, the memorandum of understanding was signed at the State Department by Israel’s national security adviser, Jacob Nagel, and Thomas Shannon, the thirdhighest ranking U.S. diplomat.

Israeli Prime Minister Benjamin Netanyahu noted those tensions but stressed that the agreement proves that “relations between Israel and the United States are strong, powerful.”

The new memorandum of understanding will provide Israel with a windfall of hardware and technology.

Israel will be able to use the money to purchase F-35s, the most advanced fighter jet that the Pentagon possesses. It will be the only country in the Middle East to have the jets, a situation designed to help Israel maintain what is known as its qualitative military edge. The first of 33 jets are expected to be delivered in December.

Mr. Netanyahu appears to have agreed to several major concessions. The deal says that Israel cannot directly lobby Congress for more aid, unless it is at war.

The pact also ends U.S. aid to the Israeli military for fuel purchases—a high-ticket item.