Oren Dorell

USA TODAY

WASHINGTON — The United States agreed Wednesday to provide Israel a record $38 billion in new military aid over the next decade. The pact is a sign of the two nations' close alliance despite major differences over Iran's nuclear program and other policies.

The agreement, which equates to $3.8 billion a year, is the largest bilateral military aid package ever and includes $5 billion for missile defense, additional F-35 joint strike fighters and increased mobility for its ground forces.

The aid package “is just the most recent reflection of my steadfast commitment to the security of the state of Israel,” President Obama said in a statement.

It will make “a significant contribution to Israel’s security in what remains a dangerous neighborhood,” Obama said. “The continued supply of the world’s most advanced weapons technology will ensure that Israel has the ability to defend itself from all manner of threats.”

National Security Adviser Susan Rice said the package was good for the U.S. as well. "When our partners and allies are more secure, the United States is more secure," Rice said at a signing ceremony Wednesday at the State Department.

Some critics faulted details of the agreement, which they said will hurt Israel’s ability to ask for more assistance in emergencies or as security conditions change.

“The U.S. is sending a message to the region that despite all the differences between us and Israel over last few years, none of Israel’s adversaries have a patron willing to commit as much money to their defense as the United States,” said David Makovsky, an analyst at the Washington Institute for Near East Policy, a think tank in Washington, D.C.

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Sen. Lindsey Graham, R-S.C., a critic of the memorandum of understanding between the two allies, called it important but slammed a provision that would limit Israel from seeking additional U.S. funds except in times of war.

“Congress is not a party to this agreement nor is this agreement binding on future congresses,” Graham said in a statement. “Congress has an independent duty to make a decision about the proper level of support for Israel or our other allies. To suggest this (agreement) will bind future presidents and congresses for the next decade is constitutionally flawed and impractical.”

Graham told USA TODAY he intends to propose a further increase of aid to Israel, saying some in Congress are discussing a wish list of advanced weaponry that would greatly expand Israel's military capabilities.

“As Iran develops its missile threat, let's push back. Let the ayatollah know the more provocative you are the more we’re going to spend on Israel's defense," Graham said.

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The agreement, which goes into effect in 2019, represents a 20% increase from the previous U.S. aid agreement of $3.1 billion annually. But it includes $500 million for missile defense, to replace up to $700 million that Congress had previously approved for Israeli missile defense systems in recent spending bills.

The package exceeds the average level of non-emergency support the U.S. provided to Israel for missile defense over the last five years, according to the White House.

Jonathan Schanzer, vice president for research at the Foundation for Defense of Democracies, a Washington think tank, said the new yearly total, $3.8 billion, does not represent a significant increase overall.

The agreement “forced Israel to think about the long-term capabilities they would like to have,” but a 10-year agreement is far too long, Schanzer said.

Ten years ago there was no Arab Spring, no Syrian civil war and no Islamic State, he said. The nuclear agreement with Iran, reached a year ago, will help that enemy of Israel to grow its economy, purchase ballistic missiles after eight years and start developing an industrial-scale nuclear enrichment program in a decade.

“Changes that are happening in the region are happening rapidly,” Schanzer said.

The agreement also phases out an earlier stipulation that Israel may spend 26% of the U.S. aid money on Israeli-made defense systems. That means money will come back to the U.S., but Schanzer said it will likely result in expanded partnerships between U.S. and Israeli defense firms.

Ilan Goldenberg, director of the Middle East Security Program at the Center for a New American Security, said the deal will allow Israel to plan for expensive new weapons, such as the V-22 Osprey, a tilt-rotor aircraft that can deliver commandos and equipment to battlefields faster and much farther away than helicopters.

As for tying Congress’ hands for future additional appropriations, Goldenberg said he’s not buying that argument.

“Nothing in the (agreement) is binding,” he said. “If things change, Congress will do what Congress will do.”