Where the money comes from
When war breaks out, military contractors can expect a rise in sales. Ever since Russia’s invasion of Ukraine in 2022,
the U.S. has provided Ukraine with $44.2 billion in military assistance. Military contractors benefit from this arrangement as the U.S. buys military equipment from these institutions and sends the weaponry to Ukraine.
For example, in Sept. 2022, the DOD worked quickly to replace $1.2 billion in contracts to replenish U.S. military stocks for weapons sent to Ukraine. The breakdown includes about $352 million in funding for replacement Javelin missiles, $624 million for replacement Stinger missiles, and $33 million for replacement HIMARS systems. The Javelin missiles are manufactured exclusively by
Javelin Joint Venture, a partnership between Raytheon and Lockheed Martin.
Raytheon Co., in Tucson, Arizona was awarded an Other Transaction Authority agreement with a ceiling of $418,339,008 for Stinger missile upgrades and replacement. Similarly, Lockheed Martin Corp., Grand Prairie, Texas, was awarded an agreement with a ceiling of $311,979,039 for Stinger missile upgrades and replacement. American High Mobility Artillery Rocket Systems (HIMARS) are also manufactured by Lockheed.
Under the Presidential Drawdown Authority (PDA), which allows the President to authorize the immediate transfer of equipment and services from U.S. stocks due to an “unforeseen emergency,” the Biden Administration authorized 47 drawdowns totaling $25 billion,
according to the Congressional Research Services.
The
weaponry provided to Ukraine includes High Mobility Artillery Rocket Systems (HIMARS) and ammunition, Advanced Surface-to-Air Missile Systems, Abrams tanks, 45 T-72B tanks and 186 Bradley, 35,000+ grenade launchers and small arms and more.
Today’s relevance
The current military operation in Gaza is a treasure chest for military contractors whose revenue increases as the U.S. turns to them to replenish their stocks.
The U.S. is scrambling to provide Israel with additional military funding amidst their military operation in Gaza.
Bloomberg reported that the Pentagon is quietly fulfilling Israel’s request for additional guided missiles for Apache helicopters, 155mm cannons, night vision equipment, bunker-busting bombs and armored vehicles.
The Biden Administration has recently proposed sending an additional $14.3 billion to Israel to further assist their military operation. The proposed package would have included $10.6 billion for things like air and missile defense support and industrial base investments to support the Iron Dome. $3.7 billion was to strengthen Israel’s military and enhance the U.S. Embassy security.
In a supplemental budget request, the Biden administration has proposed amending Section 12001 of the Department of Defense Appropriations Act, lifting restrictions on weapons stockpiles to allow Israel access to arms and ammunition. Additionally, The Journal reported that the Biden administration seeks to provide Israel with $320 million worth of military equipment.
The New York Times obtained a letter sent from the State Department notifying Congress of the transfer of “defense articles, technical data, and defense services to support procurement, inspection, assembly, testing, and shipment of SPICE Family Gliding Bomb Assemblies.” SPICE Family Gliding Bomb Assemblies are produced by Rafael USA, an Israeli military contractor with a branch in the U.S.
Ethical concerns
As war continues to grow worldwide whether it be in Yemen, Ukraine, or Gaza, the ethics of foreign countries’ efforts to fuel these wars through weapon transfers is being called into question.
The U.S. and U.K.’s governments have been heavily criticized for providing weapons to Saudi Arabia amidst the ongoing proxy war between Saudi and Iran taking place in Yemen. Since fighting began in 2015 with Saudi fighting against the Houthi militia group, Yemen has seen one of the world’s worst humanitarian crises with 17 million Yemenis struggling with food insecurity and 21.6 million in dire need of humanitarian assistance, according to the
World Food Programme. Since 2015, Amnesty has found remnants of U.S. weapons at the scenes of destruction in Yemen,
at hospitals,
residential homes and
mosques.
According to the
International Humanitarian Law, civilians must be protected amidst war and warring entities cannot utilize indiscriminate attacks that could potentially impact civilians.
This has led to increased calls to halt the international transfer of weapons to nations such as Saudi Arabia and Israel that have been accused of killing civilians. Israel also faces criticism for accusations of
aerial bombardment,
food blockades,
targeting civilians,
targeting hospitals and the use of U.S.-supplied
white phosphorus in Gaza, all prohibited under
international law.
However, the weapons industry is too large for the U.S. to abandon. Saudi Arabia was the world’s largest arms importer between 2015 and 2019, with 73% of Saudi Arabia’s arms coming from the U.S., according to the
Stockholm International Peace Research Institute.
In 2021, Israel imported $357 million in weapons, making them the 7th largest importer of weapons worldwide,
according to The Observatory of Economic Complexity (OEC). Israel’s top importer is the U.S. at $288 million,
according to the OEC.
In 2022,
America provided Israel with $3.3 billion in foreign assistance – 99% of that money went directly to the Israeli Defense Forces, under the label of “peace and security.” The remainder went to social services such as education and economic development, according to USAID.
