FOR INTERNAL USE ONLY FOR INTERNAL USE ONLY • • • • • • • • Urge members to support $3.3. billion in security assistance to Israel and $500 million for cooperative missile defense programs in the Fiscal Year 2023 appropriations bills. • Urge members to oppose • o o o • • FOR INTERNAL USE ONLY • • • • • • • • • • • • • FOR INTERNAL USE ONLY • • o o o o • • • • • • • • FOR INTERNAL USE ONLY • • • • o o o • • FOR INTERNAL USE ONLY FOR INTERNAL USE ONLY • • • • • • • • • • • • FOR INTERNAL USE ONLY FOR INTERNAL USE ONLY • • • • • • • • • • • • FOR INTERNAL USE ONLY FOR INTERNAL USE ONLY • • • • • • • • • • • • • • FOR INTERNAL USE ONLY FOR INTERNAL USE ONLY • • • • • • • • BILL SUMMARY www.aipac.org The United States-Israel Defense Partnership Act of 2025 February 2025 Israel today confronts the most diverse and dangerous set of threats it has faced since the nation’s founding — threats that also jeopardize American interests. As these threats facing Israel and the United States continue to grow, both countries will need to innovate and scale defense technologies to meet the challenges on the battlefield. The United States-Israel Defense Partnership Act (S. 554/H.R. 1229) expands and deepens the bilateral defense partnership, leveraging the unique capabilities offered by each country’s defense industrial base to enhance mutual security. The legislation is authored by Sens. Dan Sullivan (R-AK) and Gary Peters (D-MI) in the Senate and by Reps. Joe Wilson (R-SC) and Donald Norcross (D-NJ) in the House. Key Provisions: • Establishes a U.S.-Israel cooperative program authorized at $150 million annually through Fiscal Year (FY) 2030 to jointly research, develop and deploy advanced technologies for countering unmanned systems that threaten the United States and Israel. • Extends authorization for the U.S.-Israel “Future of Warfare” emerging technologies cooperative program through FY30 at $50 million annually to further cooperation on technologies like artificial intelligence, cybersecurity, quantum and automation. • Reauthorizes U.S.-Israel cooperative programs in countering unmanned aerial systems and anti- tunneling through FY 2028 and increases the authorization for both programs by a total of $50 million. • Extends the War Reserve Stockpile Authority-Israel, which prepositions equipment and munitions in Israel that the United States can use or transfer to allies, through January 1, 2029. • Directs the Department of Defense to establish a Defense Innovation Unit office in Israel. • Directs the Department of Defense to engage with Israel regarding the process of adding Israel to the National Technology Industrial Base (NTIB) — a special status for select allies (currently Canada, the U.K., Australia and New Zealand) to enhance collaboration in developing and producing cutting- edge defense technologies and systems. America and Israel must work together to counter ongoing and emerging threats. BILL SUMMARY www.aipac.org Enhanced Iran Sanctions Act of 2025 February 2025 The Enhanced Iran Sanctions Act (S. 556/H.R. 1422) tightens existing sanctions on Iran while providing new tools to increase enforcement. The legislation targets foreign entities aiding Iran’s illicit export of petroleum, the primary source of revenue for the Iranian regime. With Iran’s nuclear program advancing, it is crucial for the United States to use all available economic tools to increase pressure on the Iranian regime to alter its dangerous direction. The bill is authored by Sens. Dan Sullivan (R-AK) and Richard Blumenthal (D-CT) in the Senate and by Reps. Mike Lawler (R-NY) and Sheila Cherfilus-McCormick (D-FL) in the House. Key Provisions: • Policy Statement: Expresses the sense of Congress that the United States must ensure Iran does not acquire a nuclear weapons capability and counter Iran’s regional and global terrorism. • Expanded Energy Sanctions: Expands U.S. sanctions to target foreign persons who knowingly engage in “any transaction involved in, relating or incident to” the processing, sale or export of Iranian petroleum. The bill expands the scope of those subject to sanctions to include corporate officers of designated entities. • SHIP Act Expansion: Imposes sanctions on foreign persons who conduct significant transactions with ports or refineries that process Iranian petroleum in violation of the Stop Harboring Iranian Petroleum (SHIP) Act. • Sanctions Working Group: Mandates the creation of an interagency working group on Iranian sanctions to improve targeting and enforcement coordination. • Rewards for Information: Authorizes the Secretary of State to pay financial rewards to persons who provide information leading to the identification of violators of certain Iran energy sanctions. • Waiver: Includes a time-limited presidential national security waiver to the sanctions in the bill. Illicit petroleum exports, primarily to China, are a key revenue source for the Iranian regime. T H E A M E R I C A N I S R A E L P U B L I C A F F A I R S C O M M I T T E E multi-front threats israel’s iran •gaza •lebanon •yemen •west bank •syria •iraq MULTI-FRONT THREATS Iran and its terrorist proxies launched a seven-front war against the Jewish state. Israel has made significant progress since October 7, but the threat from Iran and its proxies remains. As Iran dramatically advances its nuclear program, it is also continuing to fund terror throughout the region, threatening Israelis, Americans and international commerce. Despite serious economic strains from the war, Israel has substantially increased its defense spending to protect its people. America must stand with our ally Israel and ensure it has the resources needed to confront the serious threats posed by Iran and its terrorist proxies. Israel s ‘ WEST BANK Iranian-backed terrorists in the West Bank have killed dozens of Israelis in shooting, car-ramming and stabbing attacks since October 7. And these terrorists are working to increase their development of more advanced capabilities, including rockets, drones and bomb-making facilities. The Palestinian Authority (PA) has limited security control in several major West Bank cities, allowing Iranian-backed terror groups to operate there. Israeli security forces have been working to prevent the West Bank from becoming another threat like Gaza, except even closer to Israel's major population centers. In recent months, the IDF has captured over 100 and eliminated at least 50 terrorists in the West Bank. Israel is also working to prevent Iran from smuggling weapons through Jordan into the West Bank. Israel is continuing to counter the growing threat of Iranian- backed terrorism and ensure that the West Bank cannot be used as a launching pad for an October 7-style attack. Since October 7, Hezbollah has launched nearly 20,000 missiles, rockets and drones into Israel, killing 48 Israeli civilians, including 12 children playing soccer, displacing roughly 80,000 Israelis from their homes in the north and destroying much of the infrastructure there. While the precarious ceasefire with Hezbollah holds for now, Israel has already been forced to respond to numerous violations by the Iranian- backed terror army. Iran is trying to rearm Hezbollah to reestablish the threat along Israel's border. The Lebanese Armed Forces (LAF), which is supposed to be enforcing the agreement, has yet to ensure Hezbollah's compliance. Israel is now working to ensure Hezbollah and Lebanon uphold the ceasefire, while strengthening its own forces in the north to ensure its people can safely return and begin to rebuild their lives there. LEBANON GAZA Israel has made significant progress in degrading Hamas' terror capabilities and securing the release of many of the hostages over the past 16 months. Israeli forces have killed more than 20,000 terrorists, destroyed countless weapons caches and manufacturing sites, and mapped and destroyed thousands of tunnel shafts. Gaza will remain a serious threat until Hamas is driven from power, its terror infrastructure destroyed, and the enclave is demilitarized. Hamas is using the pause in fighting to restore its control over the enclave while diverting humanitarian aid to fund its operations. Meanwhile, Hamas' sponsors — Iran, Qatar and Turkey — continue to support and shelter the terror group and its leaders. Israel is working to secure the release of all the hostages, remove Hamas from Gaza, and ensure that Gaza can never again pose a threat to Israel. Israel has been forced to dramatically increase its defense spending to protect its people from continued threats emanating from seven regional fronts — all backed by Iran. YEMEN Israel s multi-front threats ‘ With Iranian weapons, training, and intelligence, the Houthis have carried out direct missile and drone strikes on Israel. They have also carried out hundreds of attacks against U.S. Navy and commercial ships in the Red Sea since October 7. The Houthis have also taken merchant sailors and international aid workers hostage. The Houthis remain a significant threat to Israel, America, and international commerce, maintaining the ability to carry out increasingly sophisticated attacks and essentially close one of the world’s most heavily trafficked shipping lanes at any moment. The Houthis' growing arsenal of ballistic missiles, cruise missiles and drones poses a serious danger to Israel. Israel is continuing to take action to degrade and defend its people against the Houthi threat. IRAQ IRAN SYRIA Iraqi Shia militias — funded and controlled by Iran — threaten and undermine the Iraqi government and have used rockets, drones and improvised explosive devices to attack American troops and Israel. In 2024, Iranian-backed terrorists in Iraq used an explosive drone to kill three U.S. troops and injure 47 others at a military outpost in Jordan. The militias continue to use their arsenal of missiles and drones to target Israelis and Americans directly, while also destabilizing Syria, Jordan and Lebanon. Israel is defending against Iran's terrorist proxies in Iraq, which not only threaten Israel directly but also threaten the stability of Israel's neighbors. For years, Iran and its proxies have used Syria as a front to attack Israelis and as a highway to transport weapons to Hezbollah in Lebanon. The fall of the Iranian-backed Assad regime was a blow to Tehran's regional axis against Israel, but new threats have emerged, with the new Syrian government's past ties to al-Qaeda. After Assad fled, Israel carried out a series of strikes to destroy advanced Syrian military and chemical weapons capabilities to prevent them from falling into the hands of terrorists. Israel is now maintaining new positions along the Israel-Syria border to prevent attacks on the nearby Israeli communities. Israel is on alert for new threats from the various factions vying for power in Syria while preventing Iran from successfully regaining a foothold in this neighboring country. In addition to funding and arming the terrorist proxies surrounding Israel, the Iranian regime has launched two direct attacks on Israel for the first time in history. Last April and October, Iran launched hundreds of ballistic missiles, cruise missiles and drones intended to kill countless Israeli civilians. Iran remains the greatest threat to America and Israel in the region, especially as the regime inches closer to a nuclear weapon. Iran can now produce enough weapons-grade uranium for a nuclear bomb in under a week. Iran is also deepening its relationships with Russia and China, supplying weapons for Putin's war in Ukraine while selling millions of barrels of sanctioned oil to China. Israel is preparing to respond to any further attacks from Iran and prevent the regime from acquiring nuclear weapons, by force if necessary. The Economic Impact of Israel’s Multi-Front War Committed to defending itself, by itself, Israel is significantly increasing its defense spending, ensuring it’s prepared to counter these ongoing and emerging threats. Israel’s Defense Spending is Increasing Dramatically Before October 7, 2023, Israel spent 5.47% of its GDP on defense, more than any other Western nation. This number rose to 9.29% during the war, as Israel has been forced to confront this multi-front threat from Iran and its terrorist proxies. In 2025, Israel is expected to spend 7.35% of its GDP on defense, significantly more than the United States’ 3.4% in 2023 (latest available data), and well above the NATO-ally expectation of 2% — a benchmark that many European allies still struggle to meet. Significant Indirect Economic Impact of the Ongoing Conflict This spending increase comes as Israel’s economy is under serious strain from the ongoing conflict, with huge numbers of reservists called up into military service, serious damage inflicted in the country’s north and south, and a significant drop in tourism. Reservists: With 300,000 reservists called to military service — an enormous number for a country with a population of 10 million — businesses are grappling with a loss of workforce, resulting in decreased productivity. Tourism: A vital part of Israel’s economy, tourism has plummeted by over 75% , devasting this key sector and leaving countless shops closed and popular areas like Jerusalem’s Old City deserted. Other factors: Rising defense spending is driving higher interest rates and inflation. Investments in Israel's high-tech sector declined by 30% in 2024. Israel borrowed more than $73 billion last year, while major credit rating agencies downgraded Israel's credit rating and maintained a negative outlook looking forward. American Assistance Is a Decreasing Yet Vital Percentage of Israeli Defense Spending Before the war, American security assistance to Israel comprised 21% of Israel’s defense spending. By 2028, as Israel increases its defense spending, the percentage of Israel’s defense spending coming from America is projected to decline to 12% American support for Israel, including the annual security assistance appropriated by Congress each year, remains essential to Israel’s ability to defend its people against growing threats. Congress must work to strengthen and expand American support for Israel to help keep our ally safe, protect American interests in the Middle East, and promote regional stability. F E B R U A R Y 2 0 2 5 FOR INTERNAL USE ONLY FOR INTERNAL USE ONLY