Israel will receive the biggest US military aid ever given to any country.
The $38bn deal is signed four months before US President Barack Obama leaves office, ensuring some certainty for Israeli politicians before the next president is sworn in.
Obama's aides see the weapons deal as an important part of his legacy.
Critics of Israeli Prime Minister Benjamin Netanyahu say he could have secured more money if he had a better relationship with the White House.
Despite that, the message to Israel's enemies is clear: The US remains a major supporter and will continue to be well into the future.
Should Israel still get so much military aid from the United States?
Presenter: Adrian Finighan
Yossi Mekelberg - professor of international relations at Regent's University
Mouin Rabbani - co-editor of Jadaliyya online magazine
Thomas Pickering - former US ambassador to Israel
Source: Al Jazeera News