The obstacle in aid talks: US demands control over Israel's technological knowledge

The main obstacle in negotiations over future US security aid to Israel is an American demand for the transfer and management of Israeli technological knowledge, including patents and joint development programs, which is perceived as harming the technological advantage of Israel's defense industries.

The main obstacle in talks over future US security aid to Israel is not the financial amount, but an American demand for the transfer and management of Israeli technological knowledge. According to an exclusive report in Globes, Washington seeks not only knowledge sharing but the transfer of patents and joint development programs, seen in Jerusalem as harming the technological edge of local defense industries. Prime Minister Benjamin Netanyahu assessed over the weekend that Israel cannot rely on aid in its current format. The current Memorandum of Understanding ends in 2028, and talks on the next decade are stalled. Both sides agreed on a significant cut in financial aid (FMF), and the conversion clause, which allowed converting part of the grant into shekels, will drop to zero in 2028. This mainly hurts small defense companies without a US presence. The US midterm elections are expected to influence the process's continuation.