In Short
U.S. aid to Israel is not a gift — it’s a long-term investment that strengthens American defense industries, keeps U.S. soldiers out of Middle Eastern wars, and reinforces America’s global standing as a superpower with loyal allies.

Introduction and Background

Critics often claim that the United States is “sending billions to Israel” while ignoring problems at home. This claim misleads by assuming U.S. aid is charity rather than strategy. The truth is that nearly all of the $3.8 billion that America provides annually to Israel under the 2016 Memorandum of Understanding (MOU) returns directly to the U.S. economy. Israel buys American-made defense equipment, supports U.S. manufacturing jobs, and strengthens shared security interests.

In 2016, President Barack Obama signed the current 10-year MOU committing $38 billion in military assistance from fiscal years 2019–2028 (Congressional Research Service, 2024). This package represents less than one-half of one percent of the total U.S. federal budget — far less than what America spends on domestic subsidies or social programs in a single day.

The Truth: What the Facts Show

Most U.S. aid to Israel is spent in America.
Roughly 75 percent of the aid must, by law, be spent inside the United States to purchase American products such as Lockheed Martin F-35 fighter jets, Boeing transport aircraft, and Raytheon missile components (American Jewish Committee, 2024). This supports tens of thousands of U.S. jobs, from factory workers in Texas and Alabama to engineers in Massachusetts.

Israel’s defense partnership benefits U.S. troops.
The U.S. and Israel co-develop missile-defense systems like Iron Dome, David’s Sling, and Arrow 3. The U.S. Army has already purchased Iron Dome batteries to protect American soldiers abroad (Department of Defense, 2023). Israeli battlefield testing provides data that improves U.S. systems and saves American lives.

Strategic stability saves American resources.
Israel stands on the front line against Iranian expansion, Hezbollah rockets, and Islamist terror groups. Its strength means the U.S. can deter threats without deploying tens of thousands of troops to the region. Former NATO Commander General Alexander Haig famously said Israel is “the largest American aircraft carrier in the world that cannot be sunk and carries no American soldiers.”

Aid to Israel is transparent and accountable.
Every dollar is approved by Congress and subject to U.S. auditing and reporting requirements. Unlike some foreign aid recipients, Israel’s democracy ensures full oversight and alignment with American values.

Analysis: Why the Claim Is Misleading

The notion that this money “could be spent at home” ignores scale and return. Foreign aid makes up roughly 1 percent of the U.S. budget. Cutting all aid — not just to Israel — would not noticeably affect domestic spending.

Furthermore, military assistance to Israel is not a transfer of cash overseas; it is an American stimulus program that also buys security. Israel’s technological edge, cybersecurity expertise, and battlefield intelligence all serve U.S. defense interests.

Economically, the relationship is reciprocal: U.S. companies gain billions in export contracts, and American taxpayers benefit from economies of scale that reduce U.S. procurement costs. Politically, it strengthens an alliance built on shared democratic principles in a region hostile to them.

Quotes

• General Alexander Haig: “Israel is the largest American aircraft carrier in the world that cannot be sunk, does not carry a single American soldier, and is located in a critical region for American national security.”
  
• Senator Joe Biden (1986): “Were there not an Israel, the United States would have to invent one to protect her interests in the Middle East.”
  
• AJC, 2024: “More than three-quarters of all U.S. aid to Israel is spent in the United States, supporting tens of thousands of American jobs.”
  

The Bottom Line

U.S. aid to Israel is not charity; it is a cost-effective partnership that fuels American innovation, secures U.S. interests, and ensures American troops do not have to fight Middle Eastern wars.

Sources: Congressional Research Service (2024); AJC (2024); AIPAC (2024); Department of Defense (2023); PolitiFact (2023).