Funding
The initial funding and development of the Iron Dome system was provided and undertaken by Israel. This allowed for the deployment of the first two Iron Dome systems. Subsequently, funding for an additional eight Iron Dome systems—along with funding for a supply of interception missiles—is currently being provided by the United States, with two of these additional systems having been delivered by 2012. Funding for the production and deployment of these additional Iron Dome batteries and interceptor missiles was approved by the United States Congress, after being requested by President Obama in 2010. In May 2010, the White House announced that U.S. President Barack Obama would seek $205 million from U.S. Congress in his 2011 budget, to spur the production and deployment of additional Iron Dome batteries. White House spokesman Tommy Vietor stated, "The president recognizes the threat missiles and rockets fired by Hamas and Hezbollah pose to Israelis, and has therefore decided to seek funding from Congress to support the production of Israel's short range rocket defense system called Iron Dome." This would be the first direct U.S. investment in the project. Such financial assistance could expedite the completion of the defensive system, which has long been delayed by budgetary shortfalls.A few days later, on 20 May 2010, the U.S. House of Representatives approved the funding in a 410–4 vote. The bill, the United States–Israel Missile Defense Cooperation and Support Act (H.R. 5327), was sponsored by Representative Glenn C. Nye of Virginia. This money was expected to be included in the 2011 budget. Once the money is received in 2011, it will still take a further 18 months before the additional batteries are delivered to the air force.
On 9 May 2011, Haaretz published that Defense Ministry director general Maj. Gen. (res.) Udi Shani said that Israel plans to invest nearly $1 billion in the coming years for the development and production of Iron Dome batteries. "We are no longer approaching this in terms of initial operational capabilities but are defining the final target for absorbing the systems, in terms of schedule and funds. We are talking about 10–15 Iron Dome batteries. We will invest nearly $1 billion on this. This is the goal, in addition to the $205 million that the U.S. government has authorized," Shani said.
On 4 April 2012, Reuters reported that a senior Israeli official, during a briefing to a small group of journalists in condition of anonymity, predicted an increased interception range of up to 250 km, as well as more flexible aiming of Iron Dome units, thus lowering the number of batteries needed for full deployment in Israel. That would help Israel to cope with the prospect of reduced funding from the United States, while a "new round" of talks about missile-defense funding would be completed in two to three months, he anticipated. While praising American largess, the official said US planners have asked Israel to "point out honestly where the upper limit is in terms of what can be implemented" with the Iron Dome. He said the US is "deep in (fiscal) challenges itself", so it does not want to "give money for the sake of it".
In exchange for the second tranche of deployment funding, the United States is asking Israel for access to, and a stake in, elements of the system's technology.
On 17 May 2012, when Israeli Defense Minister Ehud Barak met with U.S. Secretary of Defense Leon Panetta, the Pentagon issued a statement from the Secretary saying in part, "I was pleased to inform Minister Barak that the President supports Israel's Iron Dome system and directed me to fill the $70 million in assistance for Iron Dome that Minister Barak indicated to me Israel needs this fiscal year."
On 18 May 2012, the United States House of Representatives passed the Fiscal Year 2013 National Defense Authorization Act, H.R. 4310, with $680 million for Iron Dome in Section 227. The report accompanying the bill, 112–479, also calls for technology sharing as well as co-production of Iron Dome in the United States in light of the nearly $900 million invested in the system since 2011.
SECTION 227, IRON DOME SHORT-RANGE ROCKET DEFENSE PROGRAM, would authorize $680.0 million for the Iron Dome system in fiscal years 2012–15 in PE 63913C for procurement of additional batteries and interceptors, and for operations and sustainment expenses. This section would also require the Director, Missile Defense Agency to establish within MDA a program office for cooperative missile defense efforts on the Iron Dome system to ensure long-term cooperation on this program. The committee is aware that National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383) included $205.0 million for the Iron Dome short-range rocket defense system for the State of Israel. The committee notes that the Iron Dome system has proven very effective at defeating threat rockets launched at protected targets. The committee also notes that if the full $680.0 million is used on the program, the total U.S. taxpayer investment in this system will amount to nearly $900.0 million since fiscal year 2011, yet the United States has no rights to the technology involved. The committee believes the Director should ensure, prior to disbursing the authorized $680 million for Iron Dome, that the United States has appropriate rights to this technology for United States defense purposes, subject to an agreement with the Israeli Missile Defense Organization, and in a manner consistent with prior U.S.–Israeli missile defense cooperation on the Arrow and David's Sling suite of systems. The committee also believes that the Director should explore any opportunity to enter into co-production of the Iron Dome system with Israel, in light of the significant U.S. investment in this system.
On 4 June 2012, the U.S. Senate Armed Services Committee included $210 million for Iron Dome, in its version of the National Defense Authorization Act for 2013, S.3254. The bill has been reported out of committee and is waiting to be assigned a date for consideration by the full Senate.
SEC. 237, AVAILABILITY OF FUNDS FOR IRON DOME SHORT-RANGE ROCKET DEFENSE PROGRAM, said that of the amounts authorized to be appropriated for fiscal year 2013 by section 201 for research, development, test, and evaluation, defense-wide, and available for the Missile Defense Agency, $210,000,000 may be provided to the Government of Israel for the Iron Dome short-range rocket defense program as specified in the funding table in section 4201.
Read more about this topic: Iron Dome