Israel signed an agreement with the US Pentagon on Wednesday to purchase 12 Boeing AH-64E Apache attack helicopters, following government approval of new funding arrangements that resolved a budget dispute threatening the deal. The aircraft are scheduled for delivery beginning in the early 2030s.

Defense Ministry Director General Maj. Gen. (res.) Amir Baram instructed the ministry’s delegation in Washington to sign the agreement, which was developed jointly with American officials to meet Israel’s operational requirements.

The helicopters are the latest AH-64E variant, known as Apache Echo, equipped with improved radar, targeting, communications, and battlefield coordination capabilities. They will strengthen the Israeli Air Force’s existing Apache fleet, which includes older AH-64A and AH-64D models.

Defense officials have identified the need for additional attack helicopters as one of the lessons of the October 7, 2023, Hamas assault, when Israeli forces struggled to respond rapidly to attacks across multiple locations.

“The procurement of the Apache helicopters is a critical step in the IDF’s force buildup,” Defense Minister Israel Katz said, adding that the aircraft would improve Israel’s ability to confront future threats.

The agreement follows months of disagreements between the Defense and Finance ministries over funding.

Calcalist reported that Israel missed an American ordering deadline last week despite receiving three extensions. The approximately $1 billion purchase had been jeopardized by a shortfall of roughly $288 million.

On Wednesday, the government approved approximately 1 billion shekels ($325 million) in funding, largely through cuts to a multiyear development program for Israel’s Arab communities. The decision, taken two weeks before national elections, has raised questions about budget priorities.

Baram said the agreement was completed through financial arrangements negotiated with Washington and indicated that additional purchases of aircraft, ammunition, and missile interceptors were being pursued.

In January, the US State Department authorized a potential sale of up to 30 AH-64E helicopters and related equipment worth an estimated $3.8 billion. Wednesday’s agreement covers 12 aircraft, with further purchases possible.

The deal forms part of Israel’s broader military modernization program, which includes additional F-15IA fighter jets and KC-46A aerial refueling aircraft.