US approves $510 million arms sale to Israel as aid hits record high, who are winning big in US

The United States Department of State has approved the sale of $510 million of arms to Israel on June 30. Thus paving the way for the procurement of 7,000 Joint Direct Attack Munitions (JDAM) for the Israeli Defence Force (IDF). This includes 3,845 KMU-558B/B kits for BLU-109 bombs and 3,280 KMU-572 F/B kits for MK 82 bombs, along with logistics and technical support services.

This comes as U.S. military aid to Israel hits a record $17.9 billion in 2023 alone, the highest since 1959. According to a report by Brown University’s Costs of War project, US aid released to Israel since the start of the war in Gaza had reached $17.9bn in Israel by October 7, 2024.

“The United States is committed to the security of Israel, andit is vital to U.S. national interests to assist Israel to develop and maintain a strong and ready self-defence capability,” said the statement.

“The proposed sale will enhance Israel’s capability to meet current and future threats by improving its ability to defend Israel’s borders, vital infrastructure, and population centres,” said the statement.

What are KMU-558B/B and KMU-572 F/B JDAM kits?

The JDAM system is a low-cost guidance kit that transforms unguided “dumb" bombs into precision-guided, “smart” munitions capable of striking targets with pinpoint accuracy. It was jointly developed by the US Air Force and Navy, which integrates a GPS-aided inertial navigation system and an adjustable fin that helps the missile to autonomously navigate to a preconceived target.

Who are the big winners?

This will boost massively the American defence contractors like Boeing, Raytheon, and Honeywell. Boeing is estimated to have earned a revenue of $50–100 billion in Israeli weapons sales. In November 2024, Israel signed a $5.2 billion contract with Boeing for 25 F‑15IA fighter jets. Boeing is also the lead contractor of this deal.

RTX Raytheon Technologies is also earning big from the Israel-Gaza conflict. In the third quarter of 2023, since the start of the war in Gaza, Raython have seen a 10 per cent year-on-year increase in its sales, up $20 billion. Around 20 per cent of Honeywell's total revenue in 2022 stemmed from military and defence products, especially sensors used in guided bombs, missiles, and drones. In 2024, an attack in a school was traced back to the missile components supplied by Honeywell.