How Much Money Has America Given Israel? Since its inception, Israel has been a significant recipient of U.S. financial assistance. Money-central.com breaks down the details of this aid, exploring its evolution, purpose, and the ongoing debate surrounding it, offering you a clearer understanding of the financial dynamics between the two nations.
This article delves into the history, current state, and future implications of U.S. aid to Israel, so you can stay informed about U.S. foreign policy, international relations, and geopolitical strategies.
1. What Is the Total Amount of U.S. Aid Given to Israel?
Israel has received approximately $310 billion (adjusted for inflation) in total economic and military assistance from the United States since its founding. While the United States has provided substantial foreign aid packages to other Middle Eastern countries like Egypt and Iraq, Israel remains the largest cumulative recipient of U.S. foreign aid. This substantial financial commitment reflects a multifaceted relationship underpinned by shared foreign policy objectives and a commitment to Israel’s security.
The economic assistance to Israel was considerable from 1971 to 2007. However, nearly all of the U.S. aid today supports Israel’s military, which is the most advanced in the region. This shift highlights the evolving nature of the U.S.-Israel relationship, focusing on security cooperation.
2. What Is the Current U.S. Aid Package to Israel?
The United States has provisionally agreed, via a memorandum of understanding (MOU), to provide Israel with $3.8 billion per year through 2028. This agreement ensures a consistent stream of financial support for Israel’s defense. The MOU underscores the long-term commitment of the U.S. to Israel’s security needs.
Since the start of Israel’s war with Hamas on October 7, 2023, the United States has enacted legislation providing at least $12.5 billion in direct military aid to Israel. This includes $3.8 billion from a bill in March 2024 (in line with the current MOU) and $8.7 billion from a supplemental appropriations act in April 2024. According to analysts from Brown University, Israel received $17.9 billion in U.S. military aid during this period, additionally accounting for the cost to the U.S. Defense Department of replenishing the stock of weapons provided to Israel.
U.S. Aid to Israel
3. How Does Israel Utilize U.S. Aid?
Approximately $3.3 billion a year is provided as grants under the Foreign Military Financing (FMF) program, funds that Israel must use to purchase U.S. military equipment and services. The Joe Biden administration reported nearly six hundred active FMF cases with Israel in October 2023, totaling around $24 billion.
Israel has also historically been permitted to use a portion of its FMF aid to buy equipment from Israeli defense firms, a benefit not granted to other recipients of U.S. military aid. This domestic procurement is to be phased out in the next few years. U.S. aid reportedly accounts for about 15 percent of Israel’s defense budget. In addition to FMF aid, Israel buys U.S. military products outside of the program.
Another $500 million a year is allocated for Israeli and joint U.S.-Israeli missile defense programs, in which the two countries collaborate on the research, development, and production of systems, including the Iron Dome, David’s Sling, and Arrow II. While Iron Dome was solely developed by Israel, the United States has been a production partner since 2014, with Raytheon manufacturing Tamir interceptor missiles for Iron Dome at its facilities in Arizona.
Iron Dome Missile Defense System Components
4. Are There Conditions or Restrictions Attached to U.S. Aid to Israel?
Transfers of U.S. military equipment to Israel, as to other foreign governments, are subject to relevant U.S. and international law. The president must notify Congress before selling foreign powers major weapon systems or services valued above a certain dollar threshold, allowing lawmakers time to review the sale. For transactions with Israel, the threshold that triggers a fifteen-day congressional review ranges from $25 million to $300 million, depending on the defense articles or services.
Congress can block a sale through a joint resolution, although this has never occurred. The president can bypass the congressional review in special cases if they deem that a national security emergency exists. President Biden has used this expedited waiver process for both Israel and Ukraine. For smaller transactions that don’t meet the dollar threshold, no congressional review is required.
The United States cannot provide security assistance to foreign governments or groups that commit gross human rights violations, as stated in the Leahy Law. In February 2023, the Biden administration announced that it would not provide arms to recipients deemed likely to commit serious human rights violations. Some legal scholars and other critics have alleged that the United States has not applied the Leahy Law with regard to Israel as it has with other Middle Eastern countries.
Any military aid that the United States provides to recipients must only be used according to agreed-upon terms and conditions, and it is incumbent on the U.S. government to monitor the end use of the equipment it provides. For instance, the Ronald Reagan administration banned transfers of cluster munitions to Israel for several years in the 1980s after it determined that Israel had used them on civilian targets during its invasion of Lebanon.
Israel has agreed to use U.S. weapons only in self-defense. The Biden administration officials said in mid-October 2023 that they had not placed further limitations or constraints on how Israel uses U.S. weapons, although they said that Israel should observe international law.
In February 2024, Biden issued a national security memo requiring recipients of U.S. military aid to give written assurances that they would observe international law in their use of the aid and facilitate the delivery of U.S. humanitarian assistance in the area of armed conflict where the U.S. military aid is being used.
In May, the administration issued a follow-up report that found it “reasonable to assess” that Israel has used U.S. weapons since October 7 “in instances inconsistent with its IHL [International Humanitarian Law] obligations.” Days later, the White House said it was pausing a shipment of large bombs to Israel ahead of a pending assault on the southern Gaza city of Rafah, although it noted it would continue other military assistance.
5. What Military Aid Has the United States Provided Israel Since the October 7 Attacks?
Israel has been using American-made weapons against its foes, including Hamas, Hezbollah, and Iran, for decades. Since October 7, the Biden administration has reportedly made more than one hundred military aid transfers to Israel, though only a few have met the congressional review threshold and been made public. The Israeli military has reportedly received expedited deliveries of weapons from a strategic stockpile that the United States has maintained in Israel since the 1980s. The United States also agreed to lease Israel two Iron Dome missile defense batteries that Washington had previously purchased from the country.
The aid has included tank and artillery ammunition, bombs, rockets, and small arms. In April 2024, news reports said the Biden administration was considering new military sales to Israel valued at more than $18 billion, which would include fifty F-15 fighter aircraft, though the shipments wouldn’t arrive for years. The Israeli military is also reportedly purchasing some high-tech products, such as surveillance drones, directly from smaller U.S. manufacturers.
U.S. Military Aid Transfers to Israel
6. What Is Israel’s Qualitative Military Edge (QME)?
QME has been a conceptual backbone of U.S. military aid to Israel for decades and was formally enshrined in U.S. law in 2008. It requires the U.S. government to maintain Israel’s ability “to defeat any credible conventional military threat from any individual state or possible coalition of states or from non-state actors, while sustaining minimal damage and casualties.” QME is based on NATO military planning vis-a-vis a potential conflict with the Soviet Union and Warsaw Pact countries during the Cold War.
Under the 2008 law, the United States must ensure that any weapons it provides to other countries in the Middle East do not compromise Israel’s QME. This has required the United States to provide Israel with offsetting weaponry as part of larger regional arms sales. QME has also ensured that Israel is the first in the region to receive access to the most sophisticated U.S. military weapons and platforms, such as the F-35 stealth fighter, of which Israel has fifty.
F-35 Stealth Fighter
7. Why Is There Growing Public Scrutiny of U.S. Aid to Israel?
Following Hamas’s attack on October 7, Israel received broad support from the West, but pro-Israel sentiment among some groups in the United States and many other countries has weakened as Israel’s campaign against Hamas has killed thousands of Palestinian civilians in Gaza and exacerbated a humanitarian crisis spiraling toward famine. According to a March 2024 poll by the Pew Research Center, most Americans (64 percent) held favorable views of the Israeli people, while a slight majority (51 percent) viewed the Israeli government unfavorably.
Some U.S. and foreign leaders, the United Nations, human rights and activist groups, and other parties have voiced growing concern over Israel’s heavy air and ground assaults on Gaza, as well as its alleged obstruction of humanitarian aid to the densely populated enclave. Israel has said the high civilian death toll is a result of Hamas using civilians as human shields. In December 2023, South Africa filed a case at the International Court of Justice accusing Israel of perpetrating genocide, a claim that both Israel and the United States denounced as unfounded. In May, the prosecutor for the International Criminal Court (ICC) charged both Hamas and Israeli leaders with multiple war crimes and crimes against humanity.
Recent polls suggest that American adults are divided in their views of U.S. military aid to Israel, with significant divergence among age groups. Support for military aid to Israel appears strongest among older respondents (ages sixty-five and older) and weakest among younger adults (ages eighteen to twenty-nine).
While Biden has been an ardent supporter of Israel’s right to self-defense and continues to supply Israel with essential military support via aid and weapons sales, he and some members of U.S. Congress have been critical of Israeli Prime Minister Benjamin Netanyahu’s prosecution of the war and his government’s planning for postwar Gaza. In December 2023, Biden warned that Israel’s “indiscriminate bombing” of Gaza risked costing Israel its international support. Meanwhile, some lawmakers have sought to condition U.S. military aid to Israel or block sales altogether.
In early 2024, the Biden administration paused a shipment of bombs to Israel, effectively acknowledging that Israel was using American-made weapons in a manner that resulted in civilian deaths in Gaza and risked violating the laws of war. The White House has also spoken out against what they view as Netanyahu’s lack of planning for postwar Gaza.
The Biden administration, however, rallied behind the Israeli government in late May after ICC investigators applied for arrest warrants for Netanyahu and Gallant over allegations of war crimes committed in the Palestinian territories during the latest war against Hamas and possibly before. The White House called the ICC’s decision “outrageous” and “profoundly wrong-headed.” The ICC simultaneously announced warrant applications for several Hamas leaders as well.
The Biden administration has meanwhile expanded the already large U.S. military presence in the Middle East to protect U.S. installations and ships, as well as to help defend Israel. U.S. forces helped Israel neutralize two separate Iranian missile and drone attacks, in April and October 2024, and has been protecting merchant shipping in the Red Sea and Gulf of Aden against regular Houthi attacks.
Protests Against U.S. Aid to Israel
8. What Were the U.S.-Israel Relationship Strains Before the War?
Prior to the war, the U.S.-Israel relationship had suffered some strains over the rhetoric and policies of Netanyahu’s government, including its plans to curb the Israeli Supreme Court’s powers and its approval of more Jewish settlements in the West Bank—critics say the settlements violate international law and undermine prospects for a future state for Palestinians. Some U.S. lawmakers have raised these criticisms in the debate over U.S. aid to Israel during the war in Gaza.
9. Is U.S. Aid to Israel Being Reevaluated?
Some U.S. and Israeli analysts have said that U.S. aid to Israel should be reevaluated because Israel is now a wealthy country with one of the most advanced militaries in the world. Unlike Cold War-era Israel in the 1970s, modern Israel is more than capable of providing for its own security, and the U.S. aid unnecessarily distorts the bilateral relationship and the countries’ respective foreign policies, these observers say. CFR Senior Fellow Steven A. Cook wrote in May 2024 that U.S. military aid should be phased out over ten years and replaced with a series of bilateral agreements on security cooperation, a move he says would benefit both countries and help normalize their relations.
The late Martin S. Indyk, former U.S. ambassador to Israel and CFR Distinguished Fellow, also called for reductions in U.S. aid. Some experts argue that U.S. aid actually weakens Israel’s defense industrial base while serving primarily as a guaranteed revenue stream for U.S. defense contractors.
On the other hand, supporters of continued aid say that it fosters ongoing, important collaboration between U.S. and Israeli defense industries and experts, and in the end helps the countries counter shared threats in the Middle East, particularly Iran. U.S. aid remains a “vital and cost-effective expenditure” that enhances U.S. national security, and it should not be reduced or conditioned, wrote more than three hundred Republican lawmakers in 2021. Ending U.S. military aid today “would send a message to all of Israel’s enemies that Israel’s greatest friend was stepping away, so they should double down on their plans for more, and more deadly, assaults on the Jewish state,” wrote CFR Senior Fellow Elliott Abrams in September 2023.
10. What Are the Arguments For and Against U.S. Aid to Israel?
There are varying perspectives on the U.S. financial support to Israel. Some argue that the aid bolsters U.S. national security by enabling collaboration with a key ally in a volatile region, enhancing mutual defense capabilities. They emphasize that Israel faces significant threats and that continued aid is essential for its security.
Conversely, critics contend that U.S. aid to Israel is a financial burden, especially when the U.S. has its financial challenges. Some suggest that the aid distorts U.S. foreign policy, hindering efforts to promote peace. Additionally, there are concerns that the aid may be used in ways that violate international law or exacerbate the Israeli-Palestinian conflict. As the debate continues, it’s essential to consider these multifaceted aspects to fully understand the implications of U.S. aid to Israel.
11. How Does U.S. Aid to Israel Compare to Aid to Other Countries?
The U.S. provides financial assistance to many countries worldwide for various purposes, including economic development, humanitarian aid, and security assistance. However, the scale and nature of aid to Israel are unique.
Historically, Israel has been the largest cumulative recipient of U.S. foreign aid. The U.S. aid to Israel is primarily military, while aid to other countries often focuses on economic or humanitarian needs. The long-standing, consistent nature of U.S. aid to Israel also sets it apart from aid relationships with other nations, which may be more subject to fluctuations based on changing geopolitical factors or U.S. policy priorities.
12. What Impact Does U.S. Aid Have on the Israeli Economy?
U.S. aid has significant effects on the Israeli economy. While the aid is primarily designated for military purposes, it indirectly supports other sectors by freeing up domestic resources for investment in areas such as technology, infrastructure, and social programs.
The aid also fosters a close relationship between U.S. and Israeli defense industries, leading to technology transfer and collaboration that benefits both countries. Some experts argue that it may hinder the development of Israel’s domestic defense industry by creating a dependency on U.S. products.
U.S. and Israeli Flags
13. How Has U.S. Aid Affected the Israeli-Palestinian Conflict?
The U.S. aid to Israel has complex implications for the Israeli-Palestinian conflict. Supporters argue that it enhances Israel’s security and deterrent capabilities, contributing to regional stability. By ensuring Israel’s QME, the U.S. aims to prevent escalation and maintain a balance of power.
Critics argue that it perpetuates the conflict by enabling Israel to maintain its military occupation of Palestinian territories. Some argue that it reduces pressure on Israel to negotiate a peaceful resolution with the Palestinians. This aid has become a point of contention, with discussions focusing on whether conditioning aid could encourage Israel to take steps toward peace.
14. What Role Does Congress Play in U.S. Aid to Israel?
Congress plays a significant role in overseeing and shaping U.S. aid to Israel. As the legislative branch, Congress has the power to authorize and appropriate funds for foreign aid programs, including those that benefit Israel. Congress can influence the terms and conditions of aid, as well as the overall amount allocated.
Through hearings, resolutions, and legislation, members of Congress can express their views on U.S. policy toward Israel and the appropriate level of financial support. Congressional oversight ensures that U.S. aid is used in accordance with U.S. law and policy objectives.
15. How Do U.S. Presidential Administrations Influence Aid to Israel?
U.S. presidential administrations wield substantial influence over aid to Israel. The president can set the overall tone and direction of U.S. foreign policy, including its relationship with Israel. Administrations can propose specific aid packages, negotiate memoranda of understanding, and implement policies that affect the flow and use of U.S. assistance.
The president can also use diplomatic tools to address issues related to U.S. aid, such as concerns about human rights or compliance with international law. Presidential decisions and statements can shape public perceptions of the U.S.-Israel relationship and influence the debate over aid policy.
16. What Are the Potential Future Scenarios for U.S. Aid to Israel?
Looking ahead, there are several potential scenarios for the future of U.S. aid to Israel. One possibility is that aid levels will remain relatively constant, with the U.S. maintaining its long-standing commitment to Israel’s security. Another scenario involves a gradual reduction or phasing out of aid as Israel becomes more economically self-sufficient.
Growing scrutiny of Israel’s human rights record could lead to increased pressure to condition aid on certain policy changes or compliance with international law. The trajectory of U.S. aid will depend on various factors, including evolving geopolitical dynamics, domestic political considerations, and the state of the Israeli-Palestinian conflict.
Future of U.S. Aid
17. How Does U.S. Aid Impact Israel’s Regional Relations?
U.S. aid to Israel has a significant impact on Israel’s regional relations. While it strengthens Israel’s military capabilities, enhancing its deterrent power, it raises concerns among neighboring countries about the regional balance of power.
Some Arab states view U.S. support as a sign of bias toward Israel, complicating diplomatic efforts and potentially fueling tensions. Conversely, some regional actors see U.S. aid as a stabilizing force, preventing escalation and promoting cooperation on shared security challenges.
18. What Are Some Lesser-Known Facts About U.S. Aid to Israel?
Beyond the headline figures and policy debates, there are some lesser-known facts about U.S. aid to Israel. For instance, a portion of U.S. military aid has historically been used to purchase equipment from Israeli defense firms, boosting the local economy.
U.S. aid has supported joint research and development projects between U.S. and Israeli scientists, leading to technological advancements in areas such as missile defense and cybersecurity. The aid relationship has also fostered cultural and educational exchanges, strengthening ties between the two countries.
19. How Can U.S. Citizens Engage with the Issue of Aid to Israel?
U.S. citizens can engage with the issue of aid to Israel in various ways. They can educate themselves about the history, policies, and debates surrounding U.S. aid by reading articles, reports, and books from diverse sources. Citizens can contact their elected officials to express their views and advocate for specific policy changes.
Participating in public discussions, attending town hall meetings, and supporting organizations that work on Middle East policy are other avenues for engagement. By staying informed and actively participating in the democratic process, citizens can help shape the future of U.S. aid to Israel.
20. Where Can I Find Reliable Information About U.S. Aid to Israel?
Reliable information about U.S. aid to Israel can be found from various sources. Government agencies, such as the U.S. Department of State and the U.S. Agency for International Development (USAID), provide data and reports on foreign aid programs. Non-partisan research organizations, such as the Congressional Research Service (CRS) and the Council on Foreign Relations (CFR), offer in-depth analysis and objective assessments.
Academic institutions and think tanks also conduct research on U.S. aid policy. Consulting multiple sources and considering diverse perspectives can help ensure a comprehensive understanding of this complex issue.
Reliable Sources
Understanding the financial relationship between the United States and Israel is crucial for anyone interested in international relations, U.S. foreign policy, and Middle Eastern politics. This analysis aims to provide a comprehensive overview of the history, current state, and future prospects of U.S. aid to Israel, so that you can make informed decisions about the issues.
Are you looking to take control of your finances and make informed decisions about complex financial topics? Visit money-central.com today for a wealth of resources, tools, and expert advice. Whether you’re interested in budgeting, investing, or understanding international finance, we’ve got you covered.
Address: 44 West Fourth Street, New York, NY 10012, United States.
Phone: +1 (212) 998-0000.
Website: money-central.com.
FAQ About U.S. Aid to Israel
1. Why Does the U.S. Give Aid to Israel?
The U.S. provides aid to Israel to support its security, promote regional stability, and foster shared strategic interests.
2. How Much Aid Does Israel Receive Annually?
Israel receives $3.8 billion annually through a memorandum of understanding (MOU) with the U.S., primarily for military financing.
3. What Is the Foreign Military Financing (FMF) Program?
The FMF program provides grants for Israel to purchase U.S. military equipment and services.
4. Are There Restrictions on How Israel Uses U.S. Aid?
Yes, Israel is expected to use U.S. weapons in self-defense and adhere to international laws.
5. What Is Israel’s Qualitative Military Edge (QME)?
QME ensures Israel can defeat any credible military threat while sustaining minimal damage and casualties.
6. How Has Public Opinion Affected U.S. Aid to Israel?
Growing concerns about civilian casualties in Gaza have led to increased scrutiny and calls for conditioning aid.
7. What Role Does Congress Play in U.S. Aid Decisions?
Congress authorizes and appropriates funds for foreign aid, influencing the amount and conditions of aid to Israel.
8. What Alternatives to U.S. Aid Have Been Proposed?
Some analysts suggest phasing out aid and replacing it with bilateral security agreements.
9. How Does Aid Impact the Israeli-Palestinian Conflict?
Opinions vary; some see it as enhancing security, while others believe it perpetuates the conflict.
10. Where Can I Find Accurate Information on U.S. Aid to Israel?
Reliable sources include government agencies, non-partisan research organizations, and academic institutions.
