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Kathleen and Bill Christison: U.S. Military Aid to Israel

Kathleen and Bill Christison: U.S. Military Aid to Israel: "In these days of economic crisis, budget overruns, earmarks, and multi-billion dollar bailouts, when Americans are being forced to tighten their own belts, one of the most automatic earmarks—a bailout by any measure—goes to a foreign government but is little understood by most Americans. U.S. military aid to Israel is doled out in annual increments of billions of dollars but remains virtually unchallenged while other fiscal outlays are drastically cut.

The United States and Israel signed a Memorandum of Understanding in August 2007 committing the U.S. to give Israel $30 billion in military aid over the next decade. This is grant aid, given in cash at the start of each fiscal year. The only stipulation imposed on Israel’s use of this cash gift is that it spend 74 per cent to purchase U.S. military goods and services.

The first grant under this agreement was made in October 2008, for FY2009, in the amount of $2.55 billion. To bring the total 10-year amount to $30 billion, amounts in future years will gradually increase until an annual level of $3.1 billion is reached in FY2013. This will continue through FY2018.

Israel is by far the largest recipient of U.S. foreign aid. Since 1949, the United States has provided Israel with $101 billion in total aid, of which $53 billion has been military aid. For the last 20-plus years, Israel has received an average of $3 billion annually in grant aid;, until now the grant has been a mix of economic and military aid.

Israel receives its aid under vastly more favorable terms than any other recipient. Egypt, for instance, receives $2 billion a year in economic aid, but this is a loan and must be repaid. Saudi Arabia also has U.S. military equipment in its arsenal, but it buys and pays for this equipment and is not given it, as Israel is."

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