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Prime Minister Benjamin Netanyahu told The Economist that he intends to phase out U.S. military aid over the next decade.

By Shula Rosen

Israel is planning to develop its own stealth combat drones and invest billions of shekels in expanding domestic aircraft production as part of a long-term effort to reduce reliance on foreign military aid, while continuing to procure its primary crewed fighter aircraft from the United States.

The initiative is part of a 350-billion-shekel ($119 billion) military modernization program spanning the next decade that includes expanding Israel’s domestic munitions industry and developing original aircraft manufacturing, according to media reports.

A senior Israeli official, speaking to reporters in Washington, said Israel aims to develop both stealth fighter aircraft and unmanned combat aircraft over the coming decade.

“I can envision Israel producing its own stealth fighter aircraft,” the official said. “If the assessment is that one day others may stop supplying these systems, then we should begin producing them ourselves. The goal is ten years from now.”

The official added that Israel also plans to develop unmanned combat aircraft alongside future stealth fighter capabilities.

Unlike conventional drones, unmanned combat aerial vehicles are designed to operate in close coordination with manned fighter jets. Equipped with advanced artificial intelligence, the aircraft can fly autonomously or semi-autonomously, carry out complex missions and respond to changing battlefield conditions.

Their missions include intelligence, surveillance and reconnaissance, electronic warfare, and direct combat, while serving as force multipliers that extend the reach and survivability of crewed aircraft.

Despite the increased emphasis on domestic production, Israel will continue relying on the United States for its principal crewed fighter aircraft.

Israel recently approved major procurement deals for additional fleets of F-35 and F-15IA fighter jets.

Although the aircraft are manufactured in the United States, Israel has a unique U.S. dispensation allowing it to integrate its own electronics, radar systems, and jamming pods into the platforms.

The defense initiative comes as partisan pressure has grown in the U.S. Congress to reduce military assistance to Israel.

In June, Prime Minister Benjamin Netanyahu told The Economist that he intends to phase out U.S. military aid over the next decade.

“I want to taper off the military aid within the next 10 years,” Netanyahu said, confirming that he intends to reduce the current $3.8 billion in annual assistance to zero.

He described the transition away from American funding as a process already “in progress,” saying Israel has “come of age” economically and in its defense capabilities.

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