Terms included in the 10-year Memorandum of Understanding to provide Israel with $38 billion security assistance agreed to by President Barack Obama and Israeli Prime Minister Benjamin Netanyahu.

The total value of the new MOU, which covers FY2019- FY2028, is $38 billion ($3.8 billion per year). It will succeed the current $30 billion MOU signed in 2007, which will expire at the end of FY2018.
This amount represents a significant increase over the current MOU by every measure, and will enable Israel to acquire additional advanced military capabilities from the United States.
It includes $33 billion in Foreign Military Financing (FMF) funds and an unprecedented $5 billion commitment in missile defense assistance. This funding will be disbursed in equal increments of $3.3 billion in FMF and $500 million in missile defense funding each year for the duration of the understanding.
In practical terms, the level of funding specified in the MOU will permit Israel to update the lion’s share of its fighter aircraft fleet - including through the acquisition of additional F-35s - increase its missile defense, and acquire other defense capabilities needed to meet its threat environment.
The multi-year missile defense commitment in the MOU will greatly facilitate long-term planning rather than missile defense assistance levels continuing to be appropriated year-to-year.
The $500 million in annual missile defense funding under the MOU exceeds the average level of non-emergency support the United States has provided to Israel for missile defense over the last five years.
Moreover, our decision with Israel to discontinue two anomalies in the defense relationship that no longer serve our mutual interests - Off Shore Procurement (the arrangement under the current MOU through which Israel has been uniquely permitted to spend 26.3 percent of its annual FMF package within Israel on non-U.S. products) and Israel’s use of FMF funds to purchase fuel – means that Israel will spend more funding, as much as $1.2 billion per year, on the advanced military capabilities that only the United States can provide. The acquisition of additional U.S.-produced capabilities and technology provide the best means to ensure Israel preserves its Qualitative Military Edge (QME).

Source: The White House.

Obama Signs 10-Year $38 Billion Security Assistance MOU