At the end of last week, the ministerial procurement committee gave its approval to the Ministry of Defense for the purchase of two new squadrons of aircraft: a fourth squadron of Adir (F35) planes manufactured by Lockheed Martin, and a second squadron of F15IA planes from Boeing. The cost is in the tens of billions of shekels. The purchase includes commissioning of the squadrons in the Israel Air Force, comprehensive support, parts, and logistics.

This is the first step in the implementation of the force building plan for the coming decade approved by the prime minister and the minister of defense with a budget of NIS 350 billion. The new squadrons will be an important element in the buildup of the IDF’s strength in face of emerging regional threats, and will facilitate the maintenance of Israel’s strategic regional aerial superiority.

Following the approval by the ministerial committee, Ministry of Defense director general Amir Baram instructed the ministry’s procurement delegation in the US to move ahead on signing the deals with the relevant US government and military agencies.

An interesting question is how far financing will be available from the US. The existing annual military aid agreement expires in 2028. The MOU signed by former president Barack Obama provides Israel with $3.3 million a year. In addition, Israel receives $500 million annually for collaboration on aerial defense.

Talks on a new MOU have begun with the current US administration, in the knowledge that President Trump puts the US economy at the top of his priorities. The questions over the new MOU therefore partly concern the amount of the annual aid that may be converted to shekels for spending with Israeli defense companies. At the beginning of the current aid period, the convertible amount was $815.3 million, but under the agreement it reduces from year to year. Next year it will be $250.3 million, and by the time the agreement expires in 2028 it will fall to zero. It is not unlikely that in the next MOU the convertible amount will be zero from day one.

Published by Globes, Israel business news - en.globes.co.il - on May 3, 2026.

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