The US may spend up to $2 billion financing the construction of a new armored production plant in Israel, Haaretz reported on Monday, citing official US documents.
The report said that the Israeli government announced last year a project it calls the “Armored Vehicle Acceleration Project” to increase production of Merkava tanks and troop carriers used by the IDF. The Israeli Defense Ministry estimated the project would cost about $1.5 billion, but didn’t mention potential US financing.
The US Army Corps of Engineers said in a presentation in October that future “business opportunities” in Israel include the “planning, design, and construction” of the “Joint Systems Manufacturing Center” for the armored vehicles. The presentation stated that the project is expected to cost between $1 billion and $2 billion and will be financed by US military aid.
Another document from the US Army Corps of Engineers, dated November 2025, outlines “contractor opportunities forecast” and includes the construction of the Israeli armored vehicle plant. “We are exploring the potential for a multibillion-dollar Joint Systems Manufacturing Center (JSMC) project, which could be a pivotal next step for the program,” the presentation reads, according to Haaretz.
The Haaretz report said that when asked about the projects, the US Army said a final decision had not been made. The potential project highlights the fact that US military aid to Israel doesn’t just provide weapons shipments but also finances military construction inside the country.
The US provides Israel with at least $3.8 billion in military aid annually and has provided more to support the genocidal campaign in Gaza and other wars in the region. According to Brown University’s Costs of War Project, in the two years following the October 7 attack, the US government spent at least $21.7 billion on military aid to Israel and another $9.65 billion to $12.07 billion on US military operations in the region in support of Israel.
