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Senate could reverse billions of dollars of cuts to Israeli defense sector

An amendment from Sen. Lindsey Graham would allow Israel to continue using US military financing on its own domestic industry.
An Israeli Air Force F-16 fighter plane flies above a traffic sign after taking off for a mission in Lebanon from an Israeli Air Force Base in northern Israel July 20, 2006. Hizbollah fought fierce battles with Israeli troops on the Lebanese border on Thursday, as thousands more foreigners fled the nine-day-old war in Lebanon, including 1,000 Americans evacuated by U.S. Marines. REUTERS/Ammar Awad (ISRAEL) - GM1DTCAOOUAA

The Senate could vote this week on a provision that would undo a key aspect of the military agreement with Israel negotiated last year under former President Barack Obama.

Sen. Lindsey Graham, R-S.C., has filed an amendment to the annual defense bill that would allow Israel to continue to spend more than a quarter of US military assistance to buy equipment from domestic, rather than US, firms. The amendment would represent a payday of more than $8.5 billion for the Israeli defense sector, but some critics say it would put the entire 10-year, $38 billion agreement in jeopardy.

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