S. 554 — United States-Israel Defense Partnership Act of 2025

This section expresses the sense of Congress that the United States and Israel are bound by historic and cultural ties and mutual interests, face common evolving threats, and must expand their defense partnership to develop new technologies and leverage each country's defense industrial base, a goal furthered by this Act through several joint initiatives.

This section establishes a United States-Israel Counter-Unmanned Systems Program, to be carried out by the Secretary of Defense with the concurrence of Israel's Minister of Defense, to develop, test, evaluate, and deploy counter-unmanned systems technologies; share expertise and data on threats; conduct joint research and development; and integrate systems for mutual defense. Program activities include (1) collaborative research with government, private sector, and academic institutions; (2) joint training and information sharing; (3) a Department of Defense program office for oversight; and (4) procurement and deployment of counter-unmanned systems. It requires annual unclassified reports (with classified annexes, if needed) to the Senate and House Armed Services Committees, beginning one year after enactment, describing activities, progress against threats, collaboration with related U.S. programs, and funding recommendations. The section authorizes $150 million annually for FY2026 through FY2030 and states that it does not alter existing U.S.-Israel agreements.

This section increases the total authorization of appropriations for the United States-Israel Anti-Tunnel Cooperation program to $80 million (from $50 million) and extends the program through December 31, 2028 (from December 31, 2026). (As background, the program—established by Section 1279 of the National Defense Authorization Act for Fiscal Year 2016—authorizes the Department of Defense, in coordination with Israel, to conduct joint activities to develop technologies for detecting, mapping, securing, and neutralizing cross-border tunnels that threaten the United States or Israel.)

This section modifies the United States-Israel cooperation program to counter unmanned aerial systems by (1) increasing the authorization of appropriations to $75 million (from $55 million); and (2) extending the program through December 31, 2028 (from December 31, 2026). (The program, established by Section 1278 of the National Defense Authorization Act for Fiscal Year 2020, authorizes joint activities, including research, development, and testing, to enhance capabilities against UAS threats.)

This section establishes a program for joint U.S.-Israel research, development, test, and evaluation in emerging defense technologies (i.e., artificial intelligence, cybersecurity, robotics, quantum, and automation). The Secretary of Defense is authorized to carry out the program upon request by Israel's Ministry of Defense and after submitting to the Senate and House Armed Services Committees a report containing a cost-sharing memorandum of agreement, related certifications on intellectual property rights and Israeli fund reporting, and supporting documents; the Secretary must also designate the Irregular Warfare Technology Support Directorate as the lead agency and submit to congressional committees semiannual reports received from Israel on its expenditures. The section authorizes $50 million for each of FY2026 through FY2030 to carry out the program.

This section directs the Secretary of Defense to establish a Defense Innovation Unit office in Israel not later than 180 days after enactment of this Act. The office is to (1) engage the Israeli Minister of Defense and private sector representatives in collaborative efforts to counter Iran's development of dual-use defense technologies; and (2) leverage U.S. and Israeli resources and innovation activities for the national security of both countries.

This section directs the Secretary of Defense, not later than 90 days after enactment, to engage Israel's Minister of Defense in a discussion of the process for Israel's inclusion in the national technology and industrial base (NTIB), as defined in 10 U.S.C. §4801 (i.e., persons and organizations engaged in defense-related research, development, production, integration, services, or information technology activities in the United States, United Kingdom, Australia, New Zealand, and Canada). It further requires that any such activity protect sensitive information and the national security interests of the United States and Israel.

This section directs the Secretary of Defense to assess the integrated air and missile defense in the U.S. Central Command (CENTCOM) region—including its current strength, best ways to strengthen it, and requirements (including funding and legal authorities) to expand cooperation with Israel and other U.S. partners for full operational capability—considering the strategy in section 1658(b) of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, current regional cooperation, and lessons from Iran's April 13, 2024, and October 1, 2024, airstrikes on Israel. The Secretary must submit an unclassified report with a possible classified annex to the Senate and House Armed Services Committees not later than 180 days after enactment.