Title: United States-Israel Security Assistance Authorization Act of 2018
Policy area: International Affairs

Summary:
United States-Israel Security Assistance Authorization Act of 2018
This bill extends Military Financing Program grants for Israel through FY2023.
The Department of Defense shall conduct a joint assessment with Israel regarding: (1) precision guided munitions needed by Israel in a sustained armed confrontation with Hezbollah and other armed groups and terrorist organizations, and (2) related U.S. assistance and resupply planning.
The President may utilize the Special Defense Acquisition Fund to transfer precision guided munitions and related defense articles and services to reserve stocks for Israel.
Authorities for loan guarantees and the war reserves stockpile for Israel are extended through FY2023.
The Department of Homeland Security shall establish a seven-year grant program with Israel to support: (1) cybersecurity research and development, and (2) commercialization of cybersecurity technology.
The U.S. Agency for International Development may enter into memoranda of understanding with Israel to advance common goals on energy, agriculture and food security, democracy, economic growth, education, and health.
The National Aeronautics and Space Administration (NASA) shall continue to work with the Israel Space Agency to pursue peaceful space exploration and science initiatives.
The President may enter into a cooperative project agreement with Israel to carry out research and joint production of defense articles and services to detect and destroy unmanned aerial vehicles (i.e., drones) that threaten the United States or Israel.
The bill states that it is U.S. policy to ensure that Israel maintains its qualitative military edge.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5141 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 5141

    To make improvements to certain defense and security assistance 
   provisions and to authorize assistance for Israel, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 1, 2018

Ms. Ros-Lehtinen (for herself and Mr. Deutch) introduced the following 
 bill; which was referred to the Committee on Foreign Affairs, and in 
 addition to the Committees on Armed Services, and Science, Space, and 
Technology, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To make improvements to certain defense and security assistance 
   provisions and to authorize assistance for Israel, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Israel Security Assistance Authorization Act of 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Definition.
                TITLE I--SECURITY ASSISTANCE FOR ISRAEL

Sec. 101. Findings.
Sec. 102. Statement of policy.
Sec. 103. Assistance for Israel.
Sec. 104. Joint assessment of quantity of precision guided munitions 
                            for use by Israel.
Sec. 105. Transfer of precision guided munitions to Israel.
Sec. 106. Modification of rapid acquisition and deployment procedures.
Sec. 107. Extension of War Reserves Stockpile authority.
Sec. 108. Eligibility of Israel for the strategic trade authorization 
                            exception to certain export control 
                            licensing requirements.
Sec. 109. Extension of loan guarantees to Israel.
  TITLE II--ENHANCED COOPERATION BETWEEN THE UNITED STATES AND ISRAEL

Sec. 201. United States-Israel cybersecurity cooperation.
Sec. 202. United States-Israel space cooperation.
Sec. 203. United States Agency for International Development--Israel 
                            enhanced cooperation.
Sec. 204. Authority to enter into a cooperative project agreement with 
                            Israel to counter unmanned aerial vehicles 
                            that threaten the United States or Israel.
         TITLE III--ENSURING ISRAEL'S QUALITATIVE MILITARY EDGE

Sec. 301. Improved reporting on enhancing Israel's qualtitative 
                            military edge and security posture.
Sec. 302. Statement of policy.

SEC. 2. DEFINITION.

    In this Act, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Armed Services of the House of Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        Armed Services of the Senate.

                TITLE I--SECURITY ASSISTANCE FOR ISRAEL

SEC. 101. FINDINGS.

    Congress makes the following findings:
            (1) In April 1998, the United States designated Israel as a 
        ``major non-NATO ally''.
            (2) On August 16, 2007, the United States and Israel signed 
        a 10-year Memorandum of Understanding on United States military 
        assistance to Israel, the total amount of military assistance 
        over the course of this period would equal $30 billion.
            (3) On July 27, 2012, the United States-Israel Enhanced 
        Security Cooperation Act of 2012 (Public Law 112-150; 22 U.S.C. 
        8601 et seq.) declared it to be the policy of the United States 
        ``to help the Government of Israel preserve its qualitative 
        military edge amid rapid and uncertain regional political 
        transformation'' and ``provide Israel defense articles and 
        services, to include air refueling tankers, missile defense 
        capabilities, and specialized munitions''.
            (4) On December 19, 2014, the President signed into law the 
        United States-Israel Strategic Partnership Act of 2014 (Public 
        Law 113-296) which stated the sense of Congress that Israel is 
        a major strategic partner of the United States and declared it 
        to be the policy of the United States ``to continue to provide 
        Israel with robust security assistance, including for the 
        procurement of the Iron Dome Missile Defense System''.
            (5) Section 1679 of the National Defense Authorization Act 
        for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 1135) 
        authorized funds to be appropriated for Israeli cooperative 
        missile defense program codevelopment and coproduction, 
        including funds to be provided to the Government of Israel to 
        procure the David's Sling weapon system as well as the Arrow 3 
        Upper Tier Interceptor Program.
            (6) On September 13, 2016, the House of Representatives 
        passed, by a vote of 405 to 4, House Resolution 729, expressing 
        support for the expeditious consideration and finalization of a 
        new, robust, and long-term Memorandum of Understanding on 
        military assistance to Israel between the United States 
        Government and the Government of Israel.
            (7) House Resolution 729 provides that the House of 
        Representatives--
                    (A) ``reaffirms that Israel is a major strategic 
                partner of the United States'';
                    (B) ``reaffirms that it is the policy and law of 
                the United States to ensure that Israel maintains its 
                qualitative military edge and has the capacity and 
                capability to defend itself from all threats'';
                    (C) ``reaffirms United States support of a robust 
                Israeli tiered missile defense program'';
                    (D) ``supports continued discussions between the 
                Government of the United States and the Government of 
                Israel for a robust and long-term Memorandum of 
                Understanding on United States military assistance to 
                Israel'';
                    (E) ``urges the expeditious finalization of a new 
                Memorandum of Understanding between the Government of 
                the United States and the Government of Israel''; and
                    (F) ``supports a robust and long-term Memorandum of 
                Understanding negotiated between the United States and 
                Israel regarding military assistance which increases 
                the amount of aid from previous agreements and 
                significantly enhances Israel's military 
                capabilities''.
            (8) On September 14, 2016, the United States and Israel 
        signed a 10-year Memorandum of Understanding reaffirming the 
        importance of continuing annual United States military 
        assistance to Israel and cooperative missile defense programs 
        in a way that enhances Israel's security and strengthens the 
        bilateral relationship between the two countries.
            (9) The 2016 Memorandum of Understanding reflected United 
        States support of Foreign Military Financing (FMF) grant 
        assistance to Israel over the 10-year period beginning in 
        fiscal year 2019 and ending in fiscal year 2028. Such FMF grant 
        assistance would equal $3.3 billion annually, totaling $33 
        billion.
            (10) The 2016 Memorandum of Understanding also reflected 
        United States support for funding for cooperative programs to 
        develop, produce, and procure missile, rocket and projectile 
        defense capabilities over a 10-year period beginning in fiscal 
        year 2019 and ending in fiscal year 2028 at a level of $500 
        million annually, totaling $5 billion.

SEC. 102. STATEMENT OF POLICY.

    It shall be the policy of the United States to provide assistance 
to the Government of Israel in order to support funding for cooperative 
programs to develop, produce, and procure missile, rocket, projectile, 
and other defense capabilities to help Israel meet its security needs 
and to help develop and enhance United States defense capabilities.

SEC. 103. ASSISTANCE FOR ISRAEL.

    Section 513(c) of the Security Assistance Act of 2000 (Public Law 
106-280; 114 Stat. 856) is amended--
            (1) in paragraph (1), by striking ``2002 and 2003'' and 
        inserting ``2019, 2020, 2021, 2022 and 2023'';
            (2) in paragraph (2), by striking ``equal to--'' and all 
        that follows and inserting ``not less than $3,300,000,000''; 
        and
            (3) in paragraph (3), by striking ``Funds authorized'' and 
        all that follows through ``later.'' and inserting ``Funds 
        authorized to be available for Israel under subsection (b)(1) 
        and paragraph (1) of this subsection for fiscal years 2019, 
        2020, 2021, 2022, and 2023 shall be disbursed not later than 30 
        days after the date of the enactment of an Act making 
        appropriations for the Department of State, foreign operations, 
        and related programs for the respective fiscal year, or October 
        31 of the respective fiscal year, whichever is later.''.

SEC. 104. JOINT ASSESSMENT OF QUANTITY OF PRECISION GUIDED MUNITIONS 
              FOR USE BY ISRAEL.

    (a) In General.--The President, acting through the Secretary of 
Defense, is authorized to conduct a joint assessment with the 
Government of Israel with respect to the matters described in 
subsection (b).
    (b) Matters Described.--The matters described in this subsection 
are the following:
            (1) The quantity and type of precision guided munitions 
        that are necessary for Israel to combat Hezbollah in the event 
        of a sustained armed confrontation between Israel and 
        Hezbollah.
            (2) The quantity and type of precision guided munitions 
        that are necessary for Israel in the event of a sustained armed 
        confrontation with other armed groups and terrorist 
        organizations such as Hamas.
            (3) The resources the Government of Israel can plan to 
        dedicate to acquire such precision guided munitions.
            (4) United States planning to assist Israel to prepare for 
        the sustained armed confrontations described in paragraphs (1) 
        and (2) as well as the ability of the United States to resupply 
        Israel in the event of such confrontations described in 
        paragraphs (1) and (2), if any.
    (c) Report.--
            (1) In general.--Not later than 15 days after the date on 
        which the joint assessment authorized under subsection (a) is 
        completed, the Secretary of Defense shall submit to the 
        appropriate congressional committees a report that contains the 
        joint assessment.
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex.

SEC. 105. TRANSFER OF PRECISION GUIDED MUNITIONS TO ISRAEL.

    (a) In General.--Notwithstanding section 514 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321h), the President is authorized 
to--
            (1) utilize the Special Defense Acquisition Fund to 
        transfer precision guided munitions and related defense 
        articles and services to reserve stocks for Israel; and
            (2) transfer such quantities of precision guided munitions 
        from reserve stocks for Israel as necessary for legitimate 
        self-defense and is otherwise consistent with the purposes and 
        conditions for such transfers under the Arms Export Control 
        Act.
    (b) Certification.--Except in the case of an emergency, not later 
than 5 days before making a transfer under subsection (a), the 
President shall certify to the appropriate congressional committees 
that the transfer of the precision guided munitions--
            (1) does not affect the ability of the United States to 
        maintain a sufficient supply of precision guided munitions; and
            (2) does not harm the combat readiness of the United States 
        or the ability of the United States to meet its commitment to 
        allies for the transfer of such munitions.

SEC. 106. MODIFICATION OF RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

    (a) Requirement To Establish Procedures.--
            (1) In general.--Section 806(a) of the Bob Stump National 
        Defense Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 
        note; 116 Stat. 2607) is amended--
                    (A) in paragraph (1)(C), by striking ``; and'' at 
                the end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) urgently needed to support production of precision 
        guided munitions--
                    ``(A) for United States counterterrorism missions; 
                or
                    ``(B) to assist an ally of the United States under 
                direct missile threat from--
                            ``(i) an organization the Secretary of 
                        State has designated as a foreign terrorist 
                        organization pursuant to section 219 of the 
                        Immigration and Nationality Act (8 U.S.C. 
                        1189); or
                            ``(ii) a country the government of which 
                        the Secretary of State has determined, for 
                        purposes of section 6(j) of the Export 
                        Administration Act of 1979 (50 U.S.C. 4605(j)) 
                        (as in effect pursuant to the International 
                        Emergency Economic Powers Act), section 620A of 
                        the Foreign Assistance Act of 1961 (22 U.S.C. 
                        2371), section 40 of the Arms Export Control 
                        Act (22 U.S.C. 2780), or any other provision of 
                        law, is a government that has repeatedly 
                        provided support for acts of international 
                        terrorism.''.
            (2) Prescription of procedures.--The Secretary of Defense 
        shall prescribe procedures for the rapid acquisition and 
        deployment of supplies and associated support services for 
        purposes described in paragraph (3) of section 806(a) of the 
        Bob Stump National Defense Authorization Act for Fiscal Year 
        2003, as added by paragraph (1) of this subsection, not later 
        than 180 days after the date of the enactment of this Act.
    (b) Use of Amounts in Special Defense Acquisition Fund.--Section 
114(c)(3) of title 10, United States Code, is amended by inserting at 
the end before the period the following: ``or to assist an ally of the 
United States that is under direct missile threat, including from a 
terrorist organization supported by Iran, and such threat adversely 
affects the safety and security of such ally''.

SEC. 107. EXTENSION OF WAR RESERVES STOCKPILE AUTHORITY.

    (a) Department of Defense Appropriations Act, 2005.--Subsection (e) 
of section 12001 of the Department of Defense Appropriations Act, 2005 
(Public Law 108-287; 118 Stat. 1011), as redesignated by section 105 of 
this Act, is amended by striking ``after September 30, 2018'' and 
inserting ``after September 30, 2023''.
    (b) Foreign Assistance Act of 1961.--Section 514(b)(2)(A) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by 
striking ``2013, 2014, 2015, 2016, 2017, and 2018'' and inserting 
``2018, 2019, 2020, 2021, 2022, and 2023''.

SEC. 108. ELIGIBILITY OF ISRAEL FOR THE STRATEGIC TRADE AUTHORIZATION 
              EXCEPTION TO CERTAIN EXPORT CONTROL LICENSING 
              REQUIREMENTS.

    (a) Findings.--Congress finds the following:
            (1) Israel has adopted high standards in the field of 
        export controls.
            (2) Israel has declared its unilateral adherence to the 
        Missile Technology Control Regime, the Australia Group, and the 
        Nuclear Suppliers Group.
            (3) Israel is a party to--
                    (A) the Protocol for the Prohibition of the Use in 
                War of Asphyxiating, Poisonous or Other Gases, and of 
                Bacteriological Methods of Warfare, signed at Geneva 
                June 17, 1925; and
                    (B) the Convention on the Physical Protection of 
                Nuclear Material, adopted at Vienna on October 26, 
                1979.
            (4) Section 6(b) of the United States-Israel Strategic 
        Partnership Act of 2014 (22 U.S.C. 8603 note) directs the 
        President, consistent with the commitments of the United States 
        under international agreements, to take steps so that Israel 
        may be included in the list of countries eligible for the 
        strategic trade authorization exception under section 
        740.20(c)(1) of title 15, Code of Federal Regulations, to the 
        requirement for a license for the export, re-export, or in-
        country transfer of an item subject to controls under the 
        Export Administration Regulations.
            (5) As of December 27, 2016, the last publication of the 
        license exceptions country list, Israel had not been included 
        in the list of countries eligible for the strategic trade 
        authorization exception under section 740.20(c)(1) of title 15, 
        Code of Federal Regulations.
    (b) Report on Eligibility for Strategic Trade Authorization 
Exception.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report that--
                    (A) describes the steps taken to include Israel in 
                the list of countries eligible for the strategic trade 
                authorization exception under section 740.20 (c) (1) of 
                title 15, Code of Federal Regulations section, as 
                required under 6(b) of the United States-Israel 
                Strategic Partnership Act of 2014 (22 U.S.C. 8603 
                note); and
                    (B) includes the reasons as to why Israel has not 
                yet been included in such list of countries eligible 
                for the strategic trade authorization exception.
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex.

SEC. 109. EXTENSION OF LOAN GUARANTEES TO ISRAEL.

    Chapter 5 of title I of the Emergency Wartime Supplemental 
Appropriations Act, 2003 (Public Law 108-11; 117 Stat. 576) is amended 
under the heading ``Loan Guarantees to Israel''--
            (1) in the matter preceding the first proviso, by striking 
        ``September 30, 2019''' and inserting ``September 30, 2023''; 
        and
            (2) in the second proviso, by striking ``September 30, 
        2019'' and inserting ``September 30, 2023''.

  TITLE II--ENHANCED COOPERATION BETWEEN THE UNITED STATES AND ISRAEL

SEC. 201. UNITED STATES-ISRAEL CYBERSECURITY COOPERATION.

    (a) Grant Program.--
            (1) Establishment.--The Secretary, in accordance with the 
        agreement entitled the ``Agreement between the Government of 
        the United States of America and the Government of the State of 
        Israel on Cooperation in Science and Technology for Homeland 
        Security Matters'', dated May 29, 2008 (or successor 
        agreement), and the requirements specified in paragraph (2), 
        shall establish a grant program at the Department to support--
                    (A) cybersecurity research and development; and
                    (B) demonstration and commercialization of 
                cybersecurity technology.
            (2) Requirements.--
                    (A) Applicability.--Notwithstanding any other 
                provision of law, in carrying out a research, 
                development, demonstration, or commercial application 
                program or activity that is authorized under this 
                section, the Secretary shall require cost sharing in 
                accordance with this paragraph.
                    (B) Research and development.--
                            (i) In general.--Except as provided in 
                        clause (ii), the Secretary shall require not 
                        less than 50 percent of the cost of a research, 
                        development, demonstration, or commercial 
                        application program or activity described in 
                        subparagraph (A) to be provided by a non-
                        Federal source.
                            (ii) Reduction.--The Secretary may reduce 
                        or eliminate, on a case-by-case basis, the 
                        percentage requirement specified in clause (i) 
                        if the Secretary determines that such reduction 
                        or elimination is necessary and appropriate.
                    (C) Merit review.--In carrying out a research, 
                development, demonstration, or commercial application 
                program or activity that is authorized under this 
                section, awards shall be made only after an impartial 
                review of the scientific and technical merit of the 
                proposals for such awards has been carried out by or 
                for the Department.
                    (D) Review processes.--In carrying out a review 
                under subparagraph (C), the Secretary may use merit 
                review processes developed under section 302(14) of the 
                Homeland Security Act of 2002 (6 U.S.C. 182(14)).
            (3) Eligible applicants.--An applicant shall be eligible to 
        receive a grant under this subsection if the project of such 
        applicant--
                    (A) addresses a requirement in the area of 
                cybersecurity research or cybersecurity technology, as 
                determined by the Secretary; and
                    (B) is a joint venture between--
                            (i)(I) a for-profit business entity, 
                        academic institution, National Laboratory (as 
                        defined in section 2 of the Energy Policy Act 
                        of 2005 (42 U.S.C. 15801)), or nonprofit entity 
                        in the United States; and
                            (II) a for-profit business entity, academic 
                        institution, or nonprofit entity in Israel; or
                            (ii)(I) the Federal Government; and
                            (II) the Government of Israel.
            (4) Applications.--To be eligible to receive a grant under 
        this subsection, an applicant shall submit to the Secretary an 
        application for such grant in accordance with procedures 
        established by the Secretary, in consultation with the advisory 
        board established under paragraph (5).
            (5) Advisory board.--
                    (A) Establishment.--The Secretary shall establish 
                an advisory board to--
                            (i) monitor the method by which grants are 
                        awarded under this subsection; and
                            (ii) provide to the Secretary periodic 
                        performance reviews of actions taken to carry 
                        out this subsection.
                    (B) Composition.--The advisory board established 
                under subparagraph (A) shall be composed of three 
                members, to be appointed by the Secretary, of whom--
                            (i) one shall be a representative of the 
                        Federal Government;
                            (ii) one shall be selected from a list of 
                        nominees provided by the United States-Israel 
                        Binational Science Foundation; and
                            (iii) one shall be selected from a list of 
                        nominees provided by the United States-Israel 
                        Binational Industrial Research and Development 
                        Foundation.
            (6) Contributed funds.--Notwithstanding any other provision 
        of law, the Secretary may accept or retain funds contributed by 
        any person, government entity, or organization for purposes of 
        carrying out this subsection. Such funds shall be available, 
        subject to appropriation, without fiscal year limitation.
            (7) Report.--Not later than 180 days after the date of 
        completion of a project for which a grant is provided under 
        this subsection, the grant recipient shall submit to the 
        Secretary a report that contains--
                    (A) a description of how the grant funds were used 
                by the recipient; and
                    (B) an evaluation of the level of success of each 
                project funded by the grant.
            (8) Classification.--Grants shall be awarded under this 
        subsection only for projects that are considered to be 
        unclassified by both the United States and Israel.
    (b) Termination.--The grant program and the advisory board 
established under this section terminate on the date that is 7 years 
after the date of the enactment of this Act.
    (c) No Additional Funds Authorized.--No additional funds are 
authorized to carry out the requirements of this section. Such 
requirements shall be carried out using amounts otherwise authorized.
    (d) Definitions.--In this section--
            (1) the term ``cybersecurity research'' means research, 
        including social science research, into ways to identify, 
        protect against, detect, respond to, and recover from 
        cybersecurity threats;
            (2) the term ``cybersecurity technology'' means technology 
        intended to identify, protect against, detect, respond to, and 
        recover from cybersecurity threats;
            (3) the term ``cybersecurity threat'' has the meaning given 
        such term in section 102 of the Cybersecurity Information 
        Sharing Act of 2015 (enacted as title I of the Cybersecurity 
        Act of 2015 (division N of the Consolidated Appropriations Act, 
        2016 (Public Law 114-113)));
            (4) the term ``Department'' means the Department of 
        Homeland Security; and
            (5) the term ``Secretary'' means the Secretary of Homeland 
        Security.

SEC. 202. UNITED STATES-ISRAEL SPACE COOPERATION.

    (a) Findings.--The Congress finds that--
            (1) authorized in 1958, the National Aeronautics and Space 
        Administration (NASA) supports and coordinates United States 
        Government research in aeronautics, human exploration and 
        operations, science, and space technology;
            (2) established in 1983, the Israel Space Agency (ISA) 
        supports the growth of Israel's space industry by supporting 
        academic research, technological innovation, and educational 
        activities;
            (3) the mutual interest of the United States and Israel in 
        space exploration affords both nations an opportunity to 
        leverage their unique abilities to advance scientific 
        discovery;
            (4) in 1996, NASA and the ISA entered into their first 
        agreement outlining areas of mutual cooperation, which remained 
        in force until 2005;
            (5) since 1996, NASA and the ISA have successfully 
        cooperated on many space programs supporting the Global 
        Positioning System and research related to the sun, earth 
        science, and the environment;
            (6) the bond between NASA and the ISA was permanently 
        forged on February 1, 2003, with the loss of the crew of STS-
        107 including Israeli Astronaut Ilan Ramon;
            (7) the United States-Israel Strategic Partnership Act of 
        2014 (Public Law 113-296) designated Israel as a Major 
        Strategic Partner of the United States; and
            (8) on October 13, 2015, the United States and Israel 
        signed the Framework Agreement between the National Aeronautics 
        and Space Administration of the United States of America and 
        the Israel Space Agency for Cooperation in Aeronautics and the 
        Exploration and Use of Airspace and Outer Space for Peaceful 
        Purposes.
    (b) Continuing Cooperation.--The Administrator of the National 
Aeronautics and Space Administration shall continue to work with the 
Israel Space Agency to identify and cooperatively pursue peaceful space 
exploration and science initiatives in areas of mutual interest, taking 
all appropriate measures to protect sensitive information, intellectual 
property, trade secrets, and economic interests of the United States.

SEC. 203. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT--ISRAEL 
              ENHANCED COOPERATION.

    (a) Statement of Policy.--It should be the policy of the United 
States Agency for International Development to cooperate with Israel in 
order to advance common goals across a wide variety of sectors, 
including energy, agriculture and food security, democracy, human 
rights and governance, economic growth and trade, education, 
environment, global health and water and sanitation.
    (b) Memorandum of Understanding.--The Administrator of the United 
States Agency for International Development is authorized to enter into 
memoranda of understanding with Israel in order to advance common goals 
on energy, agriculture and food security, democracy, human rights and 
governance, economic growth and trade, education, environment, global 
health and water sanitation with a focus on strengthening mutual ties 
and cooperation with nations throughout the world.

SEC. 204. AUTHORITY TO ENTER INTO A COOPERATIVE PROJECT AGREEMENT WITH 
              ISRAEL TO COUNTER UNMANNED AERIAL VEHICLES THAT THREATEN 
              THE UNITED STATES OR ISRAEL.

    (a) Findings.--Congress finds the following:
            (1) On February 10, 2018, Iran launched an unmanned aerial 
        vehicle (commonly known as a ``drone'') from Syria that 
        penetrated Israeli airspace.
            (2) Israeli officials noted that the unmanned aerial 
        vehicle was in Israeli airspace for a minute and a half before 
        being shot down by the Israeli air force.
            (3) Senior Israeli officials stated that the unmanned 
        aerial vehicle was an advanced piece of technology.
            (4) It remains unclear whether the unmanned aerial vehicle 
        was armed. Nonetheless, the launch, and sophistication of the 
        unmanned aerial vehicle, highlight the threat Israel faces from 
        unmanned aerial vehicles from Iranian forces active in Syria 
        and from Hezbollah in Lebanon.
            (5) The United States likewise faces the threat of unmanned 
        aerial vehicles along the United States border and in areas of 
        active hostilities, including unmanned aerial vehicles of the 
        Islamic State of Iraq and Syria (ISIS) in Iraq and Syria and 
        unmanned aerial vehicles manufactured of al-Qaeda in 
        Afghanistan.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) joint research and development to counter unmanned 
        aerial vehicles will serve the national security interests of 
        the United States and Israel;
            (2) Israel faces urgent and emerging threats from unmanned 
        aerial vehicles and other unmanned aerial vehicles, launched 
        from Lebanon by Hezbollah, from Syria by forces of Iran's 
        Revolutionary Guard Corps, or from others seeking to attack 
        Israel; and
            (3) the United States and Israel should continue to work 
        together to defend against all threats to the safety, security, 
        and national interests of both countries.
    (c) Authority To Enter Into Agreement.--
            (1) In general.--The President is authorized to enter into 
        a cooperative project agreement with Israel under the authority 
        of section 27 of the Arms Export Control Act (22 U.S.C. 2767) 
        to carry out research on and development, testing, evaluation, 
        and joint production (including follow-on support) of defense 
        articles and defense services to detect, track, and destroy 
        unmanned aerial vehicles that threaten the United States or 
        Israel.
            (2) Applicable requirements.--The cooperative project 
        agreement described in paragraph (1)--
                    (A) shall provide that any activities carried out 
                pursuant to the agreement are subject to--
                            (i) the applicable requirements described 
                        in subparagraphs (A), (B), and (C) of section 
                        27(b)(2) of the Arms Export Control Act; and
                            (ii) any other applicable requirements of 
                        the Arms Export Control Act with respect to the 
                        use, transfers, and security of such defense 
                        articles and defense services under that Act; 
                        and
                    (B) shall establish a framework to negotiate the 
                rights to intellectual property developed under the 
                agreement.

         TITLE III--ENSURING ISRAEL'S QUALITATIVE MILITARY EDGE

SEC. 301. IMPROVED REPORTING ON ENHANCING ISRAEL'S QUALTITATIVE 
              MILITARY EDGE AND SECURITY POSTURE.

    Section 36(h)(2) of the Arms Export Control Act (22 U.S.C. 
2776(h)(2)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) an assessment of--
                            ``(i) the ability of Israel to effectively 
                        defend itself against military threats from 
                        regional non-state actors;
                            ``(ii) the risk that is posed by the sale 
                        or export of a subsequent unauthorized transfer 
                        or proliferation of the equipment for use 
                        against Israel;
                            ``(iii) the range of cyber and asymmetric 
                        threats posed to Israel by state and non-state 
                        actors;
                            ``(iv) the range of threats posed to Israel 
                        by state and non-state actors through the use 
                        of unmanned vehicles and systems, through air, 
                        land or water; and
                            ``(v) the effective countermeasures 
                        available to Israel to defend against the risks 
                        and threats described in clauses (ii) through 
                        (iv).''.

SEC. 302. STATEMENT OF POLICY.

    It is the policy of the United States to ensure that Israel 
maintains its ability to counter and defeat any credible conventional 
military or emerging threat from any individual state or possible 
coalition of states or from non-state actors, while sustaining minimal 
damages and casualties, through the use of superior military means, 
possessed in sufficient quantity, including weapons, command, control, 
communication, intelligence, surveillance, and reconnaissance 
capabilities that in their technical characteristics are superior in 
capability to those of such other individual or possible coalition 
states or non-state actors.
                                 <all>