The U.S.-Israel Alliance Pays for Itself

From real-time intelligence to combat-tested systems, Israel provides strategic benefits that exceed the cost of U.S. aid many times over.

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Israeli and American flags are flown at the March for Israel rally on the National Mall in Washington, D.C., November 14, 2023.

Tom Brenner/Reuters

Itโ€™s a common refrain among some on the right that the U.S.-Israel relationship is a one-way street โ€” that it may not be worth the cost of the annual military aid the U.S. grants to Israel. But any claim that there is an โ€œIsrael Firstโ€ mentality in Washington seeking to undermine U.S. sovereignty and its interests in order to prop up the Jewish state is at odds with reality. From real-time intelligence that protects American forces, to improvements in U.S. weapons systems, to medical and agricultural innovations that benefit Americans, Israel consistently delivers capabilities that are materially advantageous to the United States.

From its founding in 1948 until 1977, Israel was led by a governing coalition controlled by the left-wing Labor Party, which embraced a quasi-socialist economic model. It featured kibbutzim, or collective farms, state-controlled enterprises, and the Histadrut, a powerful labor union, all of which stymied significant economic growth. The government accepted hundreds of thousands of Jewish immigrants expelled from or fleeing Arab countries who were facing legal persecution and pogroms, further straining the economy. The U.S. originally aided Israel in the form of economic grants, which began to be phased out starting in 1998. Beginning in 1973, the bulk of U.S. aid to Israel was transformed into direct military assistance. According to a Memorandum of Understanding (MOU) signed by President Barack Obama in 2016, Israel is designated to receive $3.8 billion in aid per year from the U.S. through fiscal year 2028. Israel is now obligated by the MOU to spend the vast majority of the funds on American defense products.

JW

About the Author

Jack Wolfsohn

Jack Wolfsohn, formerly an intern at National Review, is a candidate for a Masterโ€™s in Strategy, Cybersecurity, and Intelligence at Johns Hopkins University SAIS. Following graduation, he hopes to join the intelligence community, the State Department, or the Department of Defense.

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