HR-7540-119
Referred to the Committee on Armed Services, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsored by Ronny Jackson (R-TX)
What it does
This bill would establish a formal "United States-Israel Defense Technology Cooperation Initiative" run by the Secretary of Defense, in coordination with Israel's Minister of Defense. The initiative would identify, develop, and integrate Israeli and jointly developed defense technologies — including counter-drone systems, missile defense, artificial intelligence, cyber defense, and directed energy — into U.S. military programs. It would also require interim and annual reports to Congress and authorizes $150 million per year for fiscal years 2027 through 2029 ($450 million total).
Who benefits
U.S. defense contractors and technology firms that would gain access to joint venture, licensing, and co-production partnerships with Israeli industry. Israeli defense companies (e.g., Rafael, Elbit Systems) that would gain expanded access to U.S. acquisition pathways. U.S. military branches that would receive faster access to tested technologies in missile defense, counter-drone, and AI domains. Academic and research institutions in both countries participating in collaborative R&D. U.S. workers employed in co-production or manufacturing partnerships. Taxpayers if jointly developed technologies reduce long-term procurement costs.
Who is hurt
U.S. defense companies that compete with Israeli firms for Pentagon contracts and could face new foreign competition in domestic acquisition programs. Workers at competing domestic-only defense firms that may lose contracts to co-production arrangements. Countries or entities that oppose U.S.-Israel security cooperation, which could face enhanced Israeli and U.S. military capabilities. Taxpayers who bear the cost of the $450 million authorization. Advocacy groups and members of the public who oppose U.S. military assistance to Israel on foreign policy grounds.
Supporters argue
Supporters argue that the U.S.-Israel defense partnership has already produced battle-tested technologies — including the Iron Dome and Trophy active protection systems — that have been integrated into U.S. Army platforms, demonstrating concrete returns on bilateral cooperation. They contend that formalizing and accelerating this pipeline through a structured initiative would help the U.S. maintain technological superiority in emerging domains like counter-drone and AI-enabled warfare, where adversaries are rapidly advancing, while leveraging Israel's unique operational experience at lower cost than purely domestic R&D.
Opponents argue
Opponents argue that creating a dedicated, institutionalized technology pipeline with a single foreign country — backed by $450 million in new authorizations — sets a precedent that could distort U.S. defense acquisition priorities toward Israeli-origin systems regardless of whether they represent the best value or fit for U.S. needs. They contend that co-production and licensing arrangements with Israeli firms may displace domestic defense industrial base investment, and that the bill's broad mandate to integrate foreign-origin technologies into U.S. "programs of record" could reduce competition and oversight in Pentagon procurement.