U.S. Defense Industry Would Get $35 Billion Boon In Senate Ukraine, Border Deal
The measure, which totals $118.3 billion, faces long odds in the House, where conservatives oppose sending more funding to Kyiv.
(Bloomberg) -- The US defense industry stands to gain about $35 billion from a Senate compromise unveiled late Sunday that would unlock billions in military aid to Ukraine, as well as funds for Israel and allies in the Pacific.
The measure, which totals $118.3 billion and includes new US immigration restrictions and funding, faces long odds in the House, where conservatives oppose sending more funding to Kyiv.
But the bill would amount to a windfall for the domestic defense industry, including $5.4 billion for additional artillery, air defense munitions, counter-drone technologies, and critical munition components, according to the Senate Appropriations Committee.
Lockheed Martin Corp., RTX Corp., General Dynamics Corp., Boeing Co., Northrop Grumman Corp. and HII, formerly known as Huntington Ingalls Industries, are among the companies likely to gain the most business from the overall package.
The deal will help the US invest its own defense industrial base and support American jobs producing weapons and equipment the US can send to Ukraine, a senior administration official said.
Countering China
The legislation includes $3.3 billion to shore up the US submarine industry and help Australia acquire a fleet of eight nuclear-powered submarines as part of a security pact the US struck with Australia and the UK, known as AUKUS.
That agreement, which marks the first time since 1965 that the US has shared its highly sensitive sub technology, is intended to parry China’s growing influence in the Indo-Pacific region.
The Senate bill also includes a $1.9 billion investment in the US industrial base to replenish US weapons provided to Taiwan; $542.2 million to meet unfunded US needs in the region; and $133 million to support the US’s ability to manufacture critical cruise missile components.
Middle East
Israel would receive $10.6 billion in its fight against Hamas, including $4 billion for its Iron Dome and David’s Sling defensive systems, both made by Rafael Advanced Defense Systems and the US-based RTX. It would also receive $1.2 billion for the laser-based Iron Beam air defense system made by Rafael, an Israeli company.
The US House is set to vote this week on a standalone $17.6 billion Israel aid package, but that measure has already drawn opposition from ultra-conservatives and defense hawks who support Ukraine. It would require Democratic votes to pass.
The Senate bill includes $2.4 billion to support US operations in the Middle East and to cover combat expenditures for weapons to counter Iranian-backed groups who have attacked Red Sea shipping and American troops and allies stationed in Iraq and Syria.
By comparison, the House proposal would provide $3.3 billion to fund the US’s response and $200 million for the protection of US personnel and evacuations of US citizens.
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