The U.S. Department of Defense has asked Congress for more than $3.5 billion to replenish missiles and other munitions expended in recent Israeli operations, according to budget documents prepared through mid-May. The request includes at least $1 billion for missiles made by RTX Corp. and follows the launch of more than 100 Terminal High Altitude Area Defense (THAAD) interceptors during a 12-day exchange with Iran in June—about a quarter of the system’s operational stock. Pentagon officials say production capacity is struggling to keep pace with demand generated by the Middle East deployment. In Jerusalem, Prime Minister Benjamin Netanyahu’s cabinet approved a 30 billion-shekel (roughly $8.9 billion) increase to the 2025 state budget, most of it earmarked for defense spending tied to the conflicts in Gaza and with Iran. The supplement lifts the annual deficit target to 5.2 percent of gross domestic product and will be financed in part by a 3.35 percent cut to the allocations of all other government ministries. Separately, Israel’s Defense Procurement Committee endorsed a five-year, 5 billion-shekel ($1.5 billion) program to accelerate production of Merkava Mk 4 Barak main battle tanks, Namer armored personnel carriers and Eitan wheeled APCs. Finance Minister Bezalel Smotrich said the procurement push, together with the broader budget increase, was necessary to rebuild stocks and strengthen the Israel Defense Forces after nearly two years of multi-front fighting. The parallel spending moves by Washington and Jerusalem highlight the mounting fiscal cost of Israel’s ongoing military campaigns and the strain they are placing on U.S. and Israeli arsenals. Defense analysts warn that, without expanded industrial capacity, both countries could face extended lead times in replacing advanced interceptor missiles and armored vehicles.
◼️ Israel approves settlement construction plan to divide West Bank ◼️ Smotrich: We are erasing the Palestinian state https://t.co/i68CSLDP8j
NEW: Israel has officially approved the long-stalled E1 settlement plan east of occupied Jerusalem. The project, pushed by Finance Minister Smotrich, involves building 3,400+ housing units to link Ma’ale Adumim with Jerusalem. This move splits the West Bank in two, cuts off https://t.co/7y3YXgnyoq
JUST IN: Israeli Finance Minister Smotrich is under attack from ministers due to cuts to ministries' budgets to finance war expenses. - Israeli Channel 12 https://t.co/nr8oYvq39d