U.S.-Israeli Missile Defense

(January 2012)

U.S. Foreign Aid: Overview | Table (1949-2009) | Foreign Military Financing

Overview

Congress and successive Administrations have shown strong support for joint U.S.-Israeli missile defense projects. U.S.-Israeli missile defense cooperation has perennially been authorized and appropriated in the defense authorization and appropriations bills. Missile defense cooperation is generally not considered a form of direct aid, but many U.S. and Israeli observers consider it a vital component of the Israel’s strategic relationship with the United States. Israel and the United States each financially contribute to several projects and share technology from co-developed weapons systems. The U.S. and Israeli militaries also participate together in joint biannual antiaircraft
exercises (code named Juniper-Cobra). According to sources, Juniper-Cobra exercises included U.S. naval ships and ground personnel operating the Aegis, THAAD and Patriot missile shields in coordination with Israel’s Arrow II interceptor.

Multi-Layered Missile Defense

Over the past several years, U.S.-Israeli missile defense cooperation has evolved to include the co-development of several systems designed to thwart a diverse range of threats, from short-range missiles and rockets fired by non-state actors, such as Hamas and Hezbollah, to mid- and long range ballistic missiles in Syria’s and Iran’s arsenals. Israel also possesses U.S.-supplied Hawk and Patriot missile batteries. In addition to joint programs, Israel has its own missile defense programs.

David’s Sling

David’s Sling (aka Magic Wand) is a short/medium-range system designed to counter long-range rockets and slower-flying cruise missiles, such as those possessed by Hezbollah in Lebanon, fired at ranges from 40 km to 300 km. It is being jointly developed by Israel’s Rafael Advanced Defense Systems and Raytheon. The system is expected to be operational by 2010. In August 2008, Israel and the United States officially signed a “project agreement” to co-develop the David’s Sling system. According to Lt. Gen. Henry Obering, director of the U.S. Missile Defense Agency, “We wanted a truly co-managed program because the United States will be very interested in this for our own purposes.... The agreement we just signed allows us to work through specific cost-sharing arrangements and other program parameters.”28

The Arrow and Arrow II

Since 1988, Israel and the United States have been developing the Arrow Anti-Missile System, a weapon with a theater ballistic missile defense capability. The United States has funded just under half of the annual costs of the development of the Arrow Weapon System, with Israel supplying the remainder of the costs. The Arrow became operational in 2000. The Arrow II program, a joint effort of Boeing and Israel Aerospace Industries (IAI), is designed to defeat longer-range conventional ballistic missiles.

High Altitude Missile Defense System (Arrow-III)

Fearing a potential nuclear threat from Iran, Israel has sought a missile interceptor that operates at a higher altitude and greater range than the Arrow. In October 2007, the United States and Israel agreed to establish a committee to evaluate Israel’s proposed “Arrow III,” a top-tier system designed to intercept advanced missiles with nuclear-tipped warheads. The Arrow III will be a more advanced version—in terms of speed, range and altitude—of the current Arrow II interceptor. In the spring and summer of 2008, Israel decided to begin production of the Arrow III and the United States agreed to co-fund its development despite a proposal by Lockheed Martin urging Israel to purchase the Terminal High-Altitude Area Defense (THAAD) missile defense system. In 2009, some Israelis feared that U.S.-Israeli co-funding for the Arrow III would be eliminated and replaced by Raytheon’s SM-3 interceptor found on Aegis warships. The SM-3 costs considerably more per missile than the Arrow III ($10-$12 million versus $1.5-$2 million).29 The Arrow III is made by Israel Aerospace Industries (IAI) and Boeing. It is expected

Defense Budget Appropriations Report for FY2006 - FY2012

($ millions)

Source:
- Jeremy Sharp, "US Foreign Aid to Israel," CRS Report (September 16, 2010).
- "MDA Fiscal Year 2012 Budget Outline," Department of Defense.
- Yitzhak Benhorin, "US Earmarks $235 Million for Israel's Defense Systems," Ynet, (December 22, 2011).
- Malkah Fleisher, "US OKs Unprecedented Amount for Israeli Missile Defense," Jewish Press, (December 23, 2011).