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Ongoing Story· Day 30

Israel Loses Apache Helicopter Deal Due to Budget Delays

14 developments

MakoPolitics

Israel Approves Over $250 Million for Apache Deal, Cuts Arab Sector Budget

Translated & summarized from Mako by baba

CenterCharged tone

Hebrew · Sole source

The Israeli government has approved over 1 billion shekels for an Apache helicopter deal, diverting most funds from the Arab sector's five-year plan. The decision, made shortly before elections, secured a last-minute extension from the U.S. despite missed deadlines. Legal concerns were raised about the timing, but defense officials cited operational urgency. The deal faces scrutiny amid a reported 40 billion shekel defense budget deficit.

The story in 6 lines · by baba

  • Israel's government approved over 1 billion shekels for Apache helicopters, cutting funds from the Arab sector's budget.
  • The U.S. granted a final extension for the Apache deal until today, despite missed deadlines.
  • The decision was made via urgent phone poll by the Minister of Finance, days before national elections.
  • Legal counsel warned of potential issues with government decisions during the election period.
  • Defense officials cited operational urgency and the risk of compromising security if the deal is delayed.
  • The approval comes amid warnings of a significant 40 billion shekel deficit in the 2026 defense budget.

The Israeli government has approved a budget of over 1 billion shekels (approximately $270 million) to advance a crucial Apache helicopter procurement deal, with most of the funds to be diverted from a five-year plan for the Arab sector.

The decision, made via an urgent phone poll initiated by the Minister of Finance, aims to expedite a classified defense acquisition and adjust the expenditure timeline. The funds will be allocated between 2027 and 2029, with an additional 68 million shekels designated for 2026. This move comes less than two weeks before national elections and amidst ongoing disputes between the Finance and Defense ministries.

Defense officials revealed that despite missing the original deadline, the U.S. Department of Defense agreed to an extension until the current day, provided the deal is finalized. This last-minute push followed a request by the Minister of Defense to his Director General to seek a final extension, even after multiple prior delays granted by the U.S. administration.

Legal counsel raised concerns about the timing of the decision, given the election period and the government's obligation to exercise restraint. The primary worries include creating irreversible facts for the incoming government and the potential for prioritizing partisan interests. However, defense officials argued that the urgency of the acquisition and the need to secure funding sources justify the immediate action, stating that delaying the purchase could compromise essential security responses.

Despite the approval, defense sources warned of a significant budget deficit of 40 billion shekels for 2026 and future force-building budgets, which remain unresolved despite previous agreements. The funding for the Apache deal is partly sourced from deferring payments on other defense contracts, and the budget reallocation is described as a technical accounting measure to enable the deal's signing.

MakoCentre · Neve Ilan

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