MEMORANDUM OF UNDERSTANDING
04.92)

The United States and Israel reaffirm the importance of continuing annual US.
military assistance to Israel and cooperative missile defense programs in a way that
enhances Israel?s security and strengthens the bilateral relationship between our
two countries.

I. Foreign Military Financing Grant Assistance

Re?ecting the unshakable commitment of the United States to Israel?s security, the
United States supports increased levels of Foreign Military Financing (FMLF) grant
assistance to Israel in ?lture years to help Israel meet its security requirements.
Pursuant to this understanding, over the ten-year period beginning in Fiscal Year
(FY) 2019 and ending in FY 2028, FMF grant assistance would be at $3.3 billion
annually. Total FMF grant assistance over the course of this understanding would
equal $33 billion. Both the United States and Israel jointly commit to respect the
FMF levels speci?ed in this MOU, and not to seek changes to the FMF levels for
the duration of this understanding.

With respect to FIVLF grant assistance, the United States notes the importance of
making MF resources available to finance the purchase of US. military goods
and services in the United States. Both sides jointly understand that the amount of
MF grants available for Off Shore Procurement (OSP) should be phased out, such
that funding for OSP is to be available according to the following schedule: $815.3
mil-lion in FY 2019, $805.3 million in FY 2020, $795.3 million in FY 2021, $785.3
million in FY 2022, $775.3 million in FY 2023, $725.3 million in FY 2024, $450.3
million in FY 2025, $250.3 million in FY 2026, $250.3 million in FY 2027, and $0
in FY 2028. 

II. Missile and Rocket Defense Cooperative Programs

Further re?ecting the unshakable commitment of the United States to Israel?s
security, and recognizing the importance to Israel?s security of effective missile,
rocket, and projectile defense, the United States supports funding forcooperative
programs to develop, produce, and procure missile, rocket, and projectile defense
capabilities to help Israel meet its security needs and to help develop and enhance
US. missile defense capabilities. Such ?inding should, over a ten year period
beginning in FY 2019 and ending in FY 2028, be provided at the level of ?$500

 

 

 

 

million per year. Total funding over the course of this understanding would equal
$5 billion. This level of funding is not associated with any particular quantity of
the Iron Dome, David?s Sling, Arrow 3 weapon systems, components or
interceptors. Consistent with past practice, the United States and Israel are to enter
into separate bilateral agreements for such cooperative programs.

The United States and Israel jointly understand that missile defense ?inds are to be
used primarily for the purposes of developing and procuring articles and services
necessary to missile, rocket, and projectile defense systems for the defense of
Israel Both sides jointly understand that any funds provided for these
purposes should be made availabl le on the basis of best efforts .at matching ?nancial
and non- -f1nanci_al contributions by Israel for such systems, as negotiated in the
memoranda of agreement. The United States and Israel note the importance of
maximizing co?production of parts and components of such defense systems in the
United States, at a level equal to or greater than 50 percent of U.S.-appropriated
funds for production, or as negotiated in the production memoranda of agreement.

Based upon their comprehensive discussions, both sides jointly commit to respect
the missile defense funding levels speci?ed in this MOU, and Israel commits not to
seek additional missile defense funding from the United States for the duration of
this understanding, except in exceptional circumstances asmay be jointly agreed
by the US. administration and Israel, such as in the event of a major armed
con?ict involving Israel.

Purposes of U. S. Security Assistance, Promotion of Effectlve Cooperation,
Transparency, and Accountability

Both governments are committed to the most efficient expenditure of security
funds. Both sides understand that the ultimate intent of assistance is to help
enable Israel to defend itself by itself and develop long-term capacity, primarily
through the acquisition of advanced Capabilities that are available from the United
States. Accordingly, with the commencement of this MOU, both sides understand
that FMF is not intended for the purchase of fuel or other consumables. The United
States and Israel intend to continue their active dialogue on security and security
policy in existing bilateral cemmittees. Thettvo sides expect, through ongoing
bilateral consultations, to maximize understanding and transparency regarding how
U. funding 1s used for defense purposes in Israel, as well as how U. ?nancial
contributions to Israel security relate to Israel 3 investment in its own security via
the expenditure of its national ?inds. To that end, Israel 15 to provide:

 

 

 

 

a. Detailed programmatic information related to the use of all US. funding to
include funds used for OSP.
b. Program/?acquisition plans for each weapons system procured using funds
provided by the United States.
c. An annual update on all cooperative defense programs, to include progress
reports and spend plans, as well as the top-line ?gure of the Israel Missile
Defense Organization (IMDO) budget. I

Both sides acknowledge that the ?mding levels in this understanding assume
continuation of adequate funding levels for US. foreign assistance and missile
defense overall, and are subject to the appropriation and availability of funds for
these purposes. 

SIGNED at Washington, this 14th day of September, 2016, in duplicate, in the
English language.

FOR THE GOVERNMENT FOR THE GOVERNMENT

 

 

OF THE UNITED STATES OF THE STATE OF ISRAEL
OF AMERICA
rs,? 
Thomas A. Jr. B. . (Res) Jacob wager
Undersecretary of State for ional Security Advisor
Political Affairs Head of the National Security Council

(Acting)