If Obama stops subsidizing Israel's defense industry, the decision will harm Israels security in a big way. Israel has for a long time looked upon the US for its defense empowerment and this move could jeopardize Israel security. America also depends on Israel on technical innovations in military equipment, so we America is also bound to loose.
Israel is the largest beneficiary of US aid for defense. Aid is being extended to Israel until 2029. Israel is the only nation receiving aid for defense with an allowance to spend a portion of that aid on weapons and equipment from its own defense system. Other countries purchase weapons directly from the US. For Israel, that's about 26 percent of its foreign aid spent at home. The US is re-examining its military budget, and prioritizing its foreign aid spending. With Israel about to experience cuts, it is time for Israel to be more self reliant, or depend on other allies for military and defense support. There is too much international terrorism and national unrest for the US to deal to continue its support to Israel in the way the US has up to now.
Yes, I believe that Obama's decision to stop subsidizing Israel's defense industry will harm Israel's security because Israel defends on the financial and military support from the United States to successfully defend its borders against its enemies. America is Israel's greatest supporter and this decision will definitely put Israel's security at risk.
Isreal is an advanced nation that is more than able to pay for its own defense. Eliminating non-security programs from its budget may be painful, but there is no excuse to keep arts programs and education funding when security is at risk. The US should move forward with this proposal.