Israel Approves Budget Transfer For Apache Helicopters After Cuts To Arab Society Funds

The Israeli government approved the transfer of nearly one billion shekels in budget funds to the Defense Ministry to finance an urgent classified procurement of 12 Apache attack helicopters. The Times of Israel reported that the cabinet conducted a telephone vote to authorize the allocation after a $1 billion acquisition deal with Boeing collapsed due to an unresolved $288 million funding gap.

Cabinet Approves Defense Transfer Via Phone Vote

Israeli government ministers were asked to approve the transfer of NIS 1 billion, or approximately $325 million, via WhatsApp messages citing an urgent security need that cannot be delayed, CTech reported. The funds are directed toward acquiring a squadron of 12 AH-64 Apache helicopters that the Israeli Air Force has sought for several years. In January, the United States approved the potential sale of the helicopters for $3.8 billion, but negotiations hit an impasse when officials could not identify a funding source for roughly $288 million of the $1 billion initial contract.

Budget Cuts Target Arab Society Funding Plans

To assemble the required funds, a draft resolution shows the government will cut money from the five-year plan for investment in Israel’s Arab society. According to The Times of Israel, those reductions will remove NIS 169 million in 2027, NIS 342 million in 2028, and NIS 453 million in 2029. CTech noted that these civilian budget cuts are part of a broader round totaling NIS 3 billion in response to military demands.

Disputes Erupt Between Finance and Defense Ministries

The emergency funding move comes amid an increasingly bitter dispute between the Finance Ministry and the Defense Ministry. Defense officials previously claimed that Israel missed the final deadline to carry out the deal with Boeing, meaning delivery would be delayed by several years as another customer takes Israel’s place, according to The Times of Israel. While some estimates suggested the budget cuts were intended to salvage the fallen helicopter deal, defense officials dismissed that interpretation as spin. Globes reported that defense establishment sources argued the cut had no connection to the Apache purchase because payments for those aircraft were not scheduled to begin until around 2030.

Surging Military Costs and Prior Budgets

Military expenditures have tripled since the outbreak of war in October 2023, driven by operations in Gaza, Lebanon, Iran, and Yemen. The state budget passed in March allotted the Defense Ministry a record NIS 143 billion, accounting for about 17 percent of total spending. In July, the Finance Ministry transferred an additional NIS 15 billion to prevent military units from grounding. Aviation A2Z reported that the defense establishment also proposed a multiyear plan covering 2027 through 2040 to increase the baseline defense budget by up to NIS 400 billion, though that proposal ran into opposition over statutory budget limits and the state’sNumerator mechanism.

Legislative Committee Review Scheduled for Defense Funding

The Joint Committee on the Defense Budget is expected to approve the transfer of NIS 17.5 billion to the defense establishment following prior approval by the Finance Committee. Details of how those funds will be allocated are scheduled for presentation to the Defense Budget Committee, while the Ministry of Finance prepares broader spending adjustments ahead of the October 27 election period.

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