New bill authorizes up to $150M yearly for U.S.-Israel drone defense

What does this do?

HR 1229 establishes a new joint U.S.-Israel program to counter drones and unmanned aircraft, authorized at up to $150 million per year from 2026 through 2030. It also extends and increases funding for existing programs on tunnel threats and drone defense, adds $50 million per year for joint research in artificial intelligence, cybersecurity, and robotics, and directs the Pentagon to open a Defense Innovation Unit office in Israel within six months. The bill extends U.S. authority to store weapons and equipment in Israel through 2029 and asks the Defense Department to study whether Israel could join the national technology and industrial base, a legal category that currently includes the U.S., Canada, Australia, and the United Kingdom.

Who does it affect?

U.S. and Israeli military and defense personnel, defense contractors, and technology companies in both countries are most directly affected. U.S. taxpayers would fund the authorized spending, and other Middle Eastern countries that coordinate with the U.S. on missile defense could see indirect regional effects.

Why does it matter?

The Pentagon would be required to assess how air and missile defense systems perform across the Middle East, drawing on lessons from Iranian missile attacks on Israel in 2024, and to identify what additional funding or legal changes might be needed. Groups and nations that use drones or tunnels as military tools are among those the programs are designed to counter.

What does it cost, and who pays?

• Up to $150M/year, 2026–2030, drones
• $50M/year for AI, cyber, robotics research
• U.S. taxpayers fund all authorized spending