JERUSALEM (VINnews) — Israel’s Defense Ministry announced Wednesday that it has signed an agreement with the United States to purchase 12 AH-64E Apache attack helicopters for the Israeli Air Force.

The deal, valued at roughly $1 billion, followed government approval earlier in the day to transfer about 1 billion shekels to the ministry for the procurement. Deliveries of the aircraft — the newest and most advanced “Echo” variant — are expected to begin in the early 2030s, the ministry said. Boeing will supply the helicopters under the government-to-government arrangement.

Defense Minister Israel Katz welcomed the purchase, calling it “a critical step in the IDF’s force buildup, one that will strengthen its operational capabilities against a wide range of threats and contribute to the security of the State of Israel in the years to come.”

Ministry Director-General Maj. Gen. (Res.) Amir Baram instructed Israel’s defense mission in the United States to finalize the agreement with the Pentagon after the cabinet’s funding decision.

The acquisition nearly collapsed amid a months-long budget dispute between the Defense and Finance ministries. Israel missed a final U.S. ordering deadline last week despite three prior extensions, as officials failed to identify a funding source for about $288 million of the total cost. The government resolved the impasse by approving the transfer of approximately 1.03 billion shekels, drawn largely from planned cuts to a multi-year development program for Israel’s Arab communities covering 2027-2029, with a smaller amount taken from the 2026 budget.

Military officials have described the helicopters as an urgent priority reflecting lessons from the Oct. 7, 2023, Hamas attack, particularly the need for faster response capabilities. Israel currently operates a mix of older AH-64A and AH-64D models; the new aircraft are intended to replace or supplement the oldest platforms in the fleet.

In January, the U.S. State Department approved a possible sale of up to 30 AH-64E helicopters and related equipment to Israel for an estimated $3.8 billion. The current agreement covers an initial tranche of 12.