Foreign Aid between Allies: U.S. and Israel

- February 23, 2017



Foreign Aid between Allies: U.S. and Israel

In 2016, U.S. President Barack Obama and Israeli Prime Minister Benjamin Netanyahu reaffirmed the strength of the U.S. – Israel relationship with a 10-year, $38 billion aid package. Here is how the agreement benefits American citizens.

1. United States defense capabilities are boosted and Americans are kept secure when Israel spends the aid package here.

  • Israel must spend near the entirety of the aid agreement in the United States—providing a major boon to U.S. defense industry contractors.
  • Foreign aid to Israel has supports 20,000 jobs directly, and countless thousands more through related suppliers and businesses.[1]

Former Supreme Commander of NATO and U.S. Secretary of State Gen. Alexander Haig described Israel as "the largest U.S. aircraft carrier, which does not require even one U.S. soldier, cannot be sunk, is the most cost-effective and battle-tested, and is located in a region which is critical to vital U.S. interests. If there would not be an Israel, the U.S. would have to deploy real aircraft carriers, along with tens of thousands of American soldiers, which would cost tens of billions of dollars annually, dragging the U.S. unnecessarily into local, regional and global conflicts."

2. United States defense capabilities are boosted and Americans are kept secure when Israel spends the aid package there.

  • Between 1974 and 1990, Israel received $18.3 billion in U.S. military grants, but provided the United States with an estimated $50-$80 billion worth in intelligence.[2]
  • Israel spends a greater percentage of its Gross Domestic Product (GDP) on defense than any other industrialized country in the world (close to 7%)—nearly double what the United States spends.
  • Israeli-developed technology helps U.S. citizens in battle. Israeli armor plating technology was used on American military vehicles in recent conflicts, and medical equipment such as the specially designed “Israeli bandage” has been used to treat U.S. troops.[3]
  • Many Israeli-designed weapons are now manufactured in the U.S.[4] Examples include jet targeting systems, fuel tanks, and drones (the first modern Unmanned Aerial Vehicles were developed by Israel).[5][6]
  • Additional Israeli military equipment used by the U.S. military includes: protection systems for armored personnel carriers, range-finding and navigation, surveillance balloons, air-launched decoys, helmet-mounted display systems, armor tiles that protect tanks and the soldiers inside of them, navigation and targeting devices for aircraft, “Popeye” missiles used to precisely destroy targets from great distances, UAVs, air-to-air missiles, rifle grenades used to breach doors, bunker-busting missiles, and more, including the most commonly used tactical radio in the U.S. army’s inventory. [7]

3. United States defense capabilities are boosted when and American are kept secure when the U.S. and Israel work together in joint operations.

  • “The two governments work together to develop sophisticated military technology, such as the David's Sling counter-rocket and Arrow missile defense systems... Israel has also emerged as an important niche defense supplier to the U.S. military, with sales growing from $300 million per year before September 11 to $1.1 billion in 2006, due to the wars in Afghanistan and Iraq. Israel's military research and development complex has pioneered many cutting-edge technologies that are transforming the face of modern war, including cyberweapons, unmanned vehicles (such as land robots and aerial drones), sensors and electronic warfare systems, and advanced defenses for military vehicles.”[8]


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