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The United States has allocated $5.2 billion from a larger aid package passed last year to Israel, which will focus on significant investments in its air defenses.

What’s the deal: In an announcement tied to the $8.7 billion US aid package approved in April 2024, $5.2 billion has now been specifically allocated to strengthen Israel’s missile defense systems, which include the Iron Dome, David’s Sling, and the cutting-edge Iron Beam laser system. The package is designed to enhance Israel’s ability to defend against a wide range of evolving threats, including rockets, missiles, UAVs, and cruise missiles. A significant portion of the funding will go toward procuring additional Iron Dome interceptor missiles, which have proven vital in protecting civilian populations and critical infrastructure during recent conflicts.

The Iron Beam, a high-powered laser defense system currently in advanced development, is expected to complement the Iron Dome by intercepting short-range threats at a lower cost, while David’s Sling is geared toward countering medium- to long-range projectiles.

The fulfillment of this package will primarily be handled by Rafael Advanced Defense Systems, the Israeli defense contractor responsible for developing the Iron Dome, David’s Sling, and Iron Beam systems. In collaboration with the US Missile Defense Agency, Rafael will expand its production capabilities to meet the increased demand for interceptors and components. The agreement also includes partnerships with other key Israeli defense firms, such as Elbit Systems for Iron Beam development and Israel Aerospace Industries (IAI) for producing Arrow 3 interceptors.

Reactions: In a statement, Maj Gen Eyal Zamir, said, “The Iron Dome contract is a cornerstone in an unprecedented effort led by the Defense Ministry, Rafael and other defense industries to strengthen Israel’s capabilities while engaged in combat. This was made possible by the US aid package finalized in Washington, and we deeply appreciate the American administration’s support.”

Rafael CEO Yoav Tureman added, “We are proud to collaborate with the US Missile Defense Agency and Israel’s Defense Ministry on this procurement deal. Since the war began, our air defense systems – Iron Dome and David’s Sling – have repeatedly demonstrated their exceptional ability to neutralize diverse threats. Expanding the production of Iron Dome underscores its effectiveness, and we remain committed to safeguarding Israel’s security.”

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