The US will transfer $205 million to Israel, probably at the start of next week, to fund the deployment of Iron Dome batteries, as promised by US President Barack Obama last year, sources in Washington inform "Globes."

The transfer of the money has been delayed until now because Congress was not able to put together the 2011 annual budget, which began on October 1, 2011. The House of Representatives had approved the aid for Iron Dome in December 2010, as part of the bill for funding all the administration's activities in 2011. But the difference between the House of Representatives version and the Senate's version was too wide.

Only at the end of last week, six months after the start of the financial year, did Congress finally succeed in putting together the 2011 federal budget, which included the aid for Iron Dome, as well as a separate item for the $3 billion annual US military aid package to Israel, and other assistance.

It is believed that the $205 million approved last year will suffice to fund four Iron Dome batteries, and sources told "Globes" that it is possible that Israel will request additional US aid to expand the missile interception system's deployment.

The most optimistic scenario is that deployment of the four batteries being funded by the US will take place at the start of 2012. Israel has currently deployed two Iron Dome batteries to defend Beersheva and Ashkelon.

According to the sources the fact that Iron Dome is now battle tested and has proven capability in real time operations has greatly increased foreign governments' interest in the system. The hope is that Iron Dome will now become an export star for Israel's defense industries, although this will not happen in the near future.

Iron Dome is a joint project of Israeli government owned Rafael Advanced Defense Systems Ltd. and US defense corporation Raytheon Company (NYSE: RTN) so that any future export deals will require US approval.

Published by Globes, Israel business news - www.globes-online.com - on April 11, 2011

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