Newly disclosed documents indicate the United States is considering a substantial $2 billion military assistance package to support Israel’s armored vehicle production capabilities. According to reports from Haaretz newspaper, this funding would facilitate the establishment of a new armored vehicle manufacturing plant within Israel, significantly enhancing the nation’s military industrial capacity.
The proposed investment would supplement America’s existing annual military aid of $3.8 billion to Israel, which operates under a decade-long bilateral agreement. The initiative specifically targets Israel’s “Armored Vehicle Acceleration Project,” a comprehensive five-year plan designed to expand Israel’s inventory of armored vehicles while accelerating production rates of Merkava battle tanks and both Namer and Eitan armored personnel carriers—all domestically developed military platforms.
US Army Corps of Engineers presentations from October and November reveal potential American involvement in financing, planning, design, and construction phases of this strategic project. One presentation referenced exploration of “a multibillion-dollar Joint Systems Manufacturing Center (JSMC) project” as a “pivotal next step” for the program.
This development occurs against the backdrop of substantial additional military support provided to Israel following the October 2023 attacks. According to Quincy Institute data, the US has delivered $21.7 billion in direct military assistance during the subsequent two years, excluding tens of billions in committed arms sales for future delivery.
The potential $2 billion allocation may generate political controversy among certain factions advocating “America First” policies. The US Army has stated it currently maintains no formal JSMC program with Israel, directing inquiries regarding potential defense ministry programs to Israeli authorities.