Washington — The U.S. Congress is weighing a significant shift in its military relationship with Israel, moving toward a legally mandated defense and technology partnership that could reduce traditional financial aid while deepening bilateral cooperation. The proposal comes amid waning political support in the United States for providing billions of dollars in annual military assistance to Israel.

For decades, the United States has granted Israel approximately $3.8 billion per year under a memorandum of understanding that expires in 2028. In recent years, however, support for continued direct military aid has softened, particularly among Democrats and younger Republicans, amid heightened scrutiny of Israel’s actions in Gaza and broader geopolitical concerns.

The new legislative proposal, included in the annual defense policy bill passed by the House and under consideration in the Senate, seeks to institutionalize defense-industrial cooperation between the two countries. This would establish a dedicated office within the Defense Department responsible for overseeing joint research, development, and deployment of weapons and technologies. An accompanying intelligence bill would also encourage expanded intelligence sharing, except where such exchanges could jeopardize U.S. national security or reveal sensitive methods.

Advocates, including President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, argue that this shift would elevate the partnership from a donor-recipient relationship to a strategic alliance focused on mutual defense innovation. They emphasize collaboration in cutting-edge areas such as artificial intelligence, autonomous systems, missile defense, and cybersecurity. Key lawmakers championing the effort include Senators Ted Budd (R-N.C.) and Kirsten Gillibrand (D-N.Y.), as well as Representatives Ronny Jackson (R-Texas) and Don Davis (D-N.C.).

Separately, Representative Marlin Stutzman (R-Ind.), aligned with Trump’s “America First” agenda, has introduced a resolution calling for an end to direct aid in favor of joint military and economic investments. Stutzman, who has met with Netanyahu to discuss the initiative, frames it as creating a more sustainable and reciprocal defense partnership without annual congressional appropriations of funds to Israel.

Despite growing support, critics raise concerns about the implications of such deep integration. Opponents, including Senator Chris Van Hollen (D-Md.) and Representative Thomas Massie (R-Ky.), warn that legally mandating joint production of defense technologies could cede too much control over sensitive U.S. military assets to a foreign government, potentially hindering American operational flexibility. They point to Israel’s reluctance to allow transfer of Iron Dome missile batteries to Ukraine as a precedent that could limit U.S. options in future conflicts.

Representative Alexandria Ocasio-Cortez (D-N.Y.) cautioned that the proposal risks entangling U.S. military systems with those of the Israel Defense Forces in ways that could threaten American sovereignty, though the legislation does not propose merging the militaries or placing forces under shared command.

Backers reject such characterizations, asserting the initiative merely codifies ongoing joint ventures and enhances security cooperation for mutual benefit. Senator Budd emphasized that the proposal would impose no operational restrictions on the U.S. military and called it a fiscally sound investment in technological collaboration.

The proposed partnership would represent one of the most extensive U.S. defense-industrial alliances outside formal mutual defense treaties. The development comes as Congress grapples with evolving political dynamics surrounding aid to Israel and seeks alternative frameworks for sustaining a close strategic relationship.