In a pilot course graduation ceremony, Netanyahu announced a plan to spend $110 billion over a decade to vastly improve Israel's security independence, including from close allies like the US.
I do not know if any part of it exists in the 2026 budget. It is a very ambitious program, and personally I hope it will include a silicon fab or two.
I think we can possibly connect it to the F-35 sale effort to Turkey and Saudi Arabia. Oddly, Israeli officials said Israel will maintain a qualitative military edge despite that. Based on just official info, even in 5-10 years an F-35A should reduce the capability gap below what one might consider the appropriate level. But if through this new program, if it materializes, Israel builds some combat aircraft manufacturing capability, then that qualitative military edge could be restored.
An indigenous manned fighter might be a leap. But further divergence from the base F-35A could be a major boost in itself.