How US defence aid shaped Israel’s military developments since Oct 7, 2023

SaveSharefacebookxwhatsapp-strokecopylinkUnited States President Donald Trump, right, is set to meet with Israel's Prime Minister Benjamin Netanyahu [File: Alex Brandon/AP]By Al Jazeera StaffPublished On 28 Jul 202628 Jul 2026Last week, the United States House of Representatives narrowly passed the National Defense Authorization Act, or NDAA, a sweeping defence spending bill that outlines military priorities for the 2027 fiscal year, which begins later this year on October 1.The legislation includes $750m in funding for Israel-related military programmes, $65m more than the previous year, as debate continues in the US over Washington’s continued military support for Israel during its war in Gaza.Recommended Stories list of 4 itemslist 1 of 4Hakeem Jeffries puts affordability at centre of Democrats’ midterm campaignlist 2 of 4Nvidia plans $250bn push to bolster OpenAI’s infrastructure ambitionslist 3 of 4Why has Iran’s economy not collapsed under US war pressure?list 4 of 4Iraqi PM visits Turkiye to boost ties despite complex challengesend of listHowever, the NDAA is not yet law. The bill now moves to the Senate, where its future remains uncertain. Earlier this month, Senate Democrats blocked the Senate version of the legislation. The measure must pass both chambers of Congress before it can reach the president’s desk for signature.The House bill drew sharply different reactions. Pro-Israel advocacy groups, including the American Israel Public Affairs Committee (AIPAC), welcomed the funding, while other organisations, including the Council on American-Islamic Relations, criticised continued US military assistance, arguing that it risks contributing to Israel’s military campaign in Gaza. If the House version passes unchanged, $500m would go towards missile defence programmes, including systems such as Israel’s Iron Dome.US assistance to Israel has historically included both defensive systems designed to intercept incoming threats and military equipment that Israel has used during military operations.Iron Dome, which became fully operational in 2011, is designed to intercept short-range rockets. A 2020 Congressional Research Service report said the system had intercepted close to 90 percent of rockets identified as threatening populated areas during periods of conflict.The remaining $250m in the NDAA would support other military capabilities. That includes $100m for counter-unmanned systems, which are technologies designed to detect and defend against drones. Another $100m would support subterranean operations, including technology used for mapping tunnels and underground facilities.The final $50m would support emerging defence technologies, including artificial intelligence-driven systems and autonomous capabilities.Previous government fundingFor the 2026 fiscal year, the US approved $500m in funding for Israeli military programmes. That included support for missile defence systems such as Iron Dome, David’s Sling, and Arrow, as well as funding for drone technology, emerging technologies, and anti-tunnelling cooperation.A 2025 analysis from Brown University’s Costs of War Project estimated that the US provided approximately $21bn in military assistance to Israel between October 2023 and September 2025.US military support for Israel has expanded over several decades. In 2016, the two countries signed a 10-year memorandum of understanding covering fiscal years 2019 through 2028. The agreement committed $33bn for the Foreign Military Financing programme and an additional $5bn for missile defence programmes.Private sector benefitsBeyond direct government funding, a number of companies are involved in supplying or supporting military systems used by Israel. A tracker created by the American Friends Service Committee, a Quaker organisation, identified 57 companies with financial ties to Israel’s military supply chain or defence-related spending.The companies range from major defence contractors, including RTX and Boeing, to technology companies such as Palantir, as well as companies in other industries, including carmakers Toyota and General Motors and e-commerce giant Amazon.Palantir’s specific financial ties to Israel’s military have not been publicly disclosed. However, its broader military contracts have. In 2025, Palantir secured a potential $10bn, 10-year contract with the US Army, while its Maven Smart System work with the US Department of Defense expanded to a reported $1.3bn.Palantir has also provided artificial intelligence and data-analysis technology to Israel’s Ministry of Defence since October 7, 2023, the day Palestinian fighters attacked southern Israel, killing approximately 1,200 people, and since when more than 73,300 Palestinians have been killed in Gaza.Palantir has not disclosed the value of those contracts or detailed how its technology has specifically been used.Palantir’s stock has jumped from $16.61 per share at market close on October 6, 2023 (US markets were closed on October 7) to $119.61 per share on Tuesday, marking a 618 percent gain. However, its biggest gains came after US President Donald Trump’s return to office, when shares rose from $51.15 per share.Brown University’s analysis found that Israel’s combat-capable air fleet relies heavily on US-supplied aircraft, including F-15s made by Boeing, as well as F-16s and F-35s made by Lockheed Martin.For helicopters, Apache helicopters are made by Boeing, while Black Hawk helicopters are made by Lockheed Martin.A Congressional report found that between 2023 and 2025, Boeing sold $18.8bn worth of F-15 aircraft and another $2.4bn worth of KC-46A aerial refuelling aircraft. Then, in December 2025, Boeing received another $8.6bn order for F-15 aircraft.Boeing’s stock has not performed as strongly since October 7. Shares rose from $187.38 on October 6 to $219.42 on Tuesday, marking a 17 percent increase. However, the company’s recent challenges have been driven more by its commercial aviation business than its defence division, including executive-level shake-ups, production delays, whistleblower concerns about safety standards, and the door-plug incident on an Alaska Airlines flight.Lockheed Martin sold $3.4bn worth of helicopters and another $660m in Hellfire missiles, according to the Congressional report. In July 2023, months before October 7, Israel purchased a new fleet of F-35 aircraft for $3bn.RTX, formerly Raytheon, produces missile systems and components used in platforms including Iron Dome. US congressional reports show $102.5m in sales by 2025.RTX’s stock was $69.77 per share on October 6, 2023, and $219.31 as of Tuesday midday trading, marking a 214.3 percent increase, with the stock showing steady growth since.