U.S. Foreign Aid to Israel

^Pr^ep^ar^{ed f}^o^r^M^e^m^b^ers^an^d^Com^mⁱ^t^t^ees^of^C^ong^r^e^ss

This report provides an overview of U.S. foreign assistance to Israel. It includes a review of past
aid programs, data on annual assistance, and an analysis of current issues. The report will be
updated annually to reflect developments over the previous year. For the most recent action on aid
to Israel, see CRS Report RL33476, Israel: Background and Relations with the United States, by
Carol Migdalovitz. For information on overall U.S. assistance to the Middle East, see CRS Report
RL32260, U.S. Foreign Assistance to the Middle East: Historical Background, Recent Trends,
and the FY2009 Request, by Jeremy M. Sharp.
Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. From
1976-2004, Israel was the largest annual recipient of U.S. foreign assistance, having recently been
supplanted by Iraq. Since 1985, the United States has provided nearly $3 billion in grants
annually to Israel.
Over the years, Israel has developed an advanced industrial economy which, according to the
World Bank, places it among the top 50 richest nations in terms of per capita income (between
Cyprus and Slovenia respectively). With Israel becoming more economically self-sufficient,
former Israeli Prime Minister Benjamin Netanyahu told a joint session of Congress in 1996 that
Israel’s need for economic aid would be reduced over time. In 1998, Israel proposed gradually
eliminating the $1.2 billion economic aid and increasing the $1.8 billion in military aid by $60
million per year over a 10-year period beginning in the year 2000. Subsequent appropriations for
Israel included cuts of approximately $120 million in economic aid and increases of $60 million
in military aid each fiscal year.
Strong congressional support for Israel has resulted in Israel’s receiving benefits that may not be
available to other countries. For example, Israel can use U.S. military assistance both for research
and development in the United States and for military purchases from Israeli manufacturers. In
addition, all U.S. foreign assistance earmarked for Israel is delivered in the first 30 days of the
fiscal year. Most other recipients normally receive their aid in installments. Congress also
appropriates funds for joint U.S.-Israeli missile defense programs.
In August 2007, the Bush Administration announced that it would increase U.S. military
assistance to Israel by $6 billion over the next decade. The agreement calls for incremental annual
increases in FMF to Israel, reaching $3.1 billion a year in the near future. The Administration has
requested $2.4 billion in military assistance and no economic aid for Israel in FY2008. H.R. 2764,
the Consolidated Appropriations Act, 2008 provides the full Administration request.

U.S.-Israeli Relations and the Role of Foreign Aid.........................................................................1
A New 10-Year Military Aid Agreement...................................................................................1
U.S. Bilateral Military Aid to Israel................................................................................................3
Foreign Military Financing (FMF)............................................................................................3
Overvi ew ....................................................................................................................... ...... 3
Early Transfer.....................................................................................................................3
FMF for in-Country Purchase.............................................................................................3
Recent U.S. Military Sales to Israel....................................................................................4
Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs..................................5
Multi-Layered Missile Defense.................................................................................................5
David’s Sling.......................................................................................................................5
The Arrow and Arrow II.....................................................................................................6
A High Altitude Missile Defense System?..........................................................................6
Aid Restrictions and Possible Violations.........................................................................................6
Cluster Munitions......................................................................................................................6
Israeli Arms Sales to China.......................................................................................................8
Israeli Settlements.....................................................................................................................8
Other Ongoing Assistance and Cooperative Programs....................................................................9
Migration & Refugee Assistance...............................................................................................9
Loan Guarantees......................................................................................................................10
Overvi ew ....................................................................................................................... .... 10
Loan Guarantees for Economic Recovery........................................................................10
American Schools and Hospitals Abroad Program (ASHA)....................................................11
U.S.-Israeli Scientific & Business Cooperation......................................................................12
Historical Background...................................................................................................................13
1948-1970 ............................................................................................................................... 13
1970-Present ............................................................................................................................ 13
1979 Israeli-Egyptian Peace Treaty..................................................................................14
Emergency Aid..................................................................................................................14
Using Aid to Support the Peace Process...........................................................................15
Table 1. Defense Budget Appropriations for U.S.-Israeli Missile Defense: FY2006-
FY2008 ......................................................................................................................................... 6
Table 2. Loan Guarantees for Economic Recovery........................................................................11
Table 3. ASHA Program Grants to Israeli Institutions, FY2000-FY2005.....................................12
Table A-1. Recent U.S. Aid to Israel.............................................................................................16
Table A-2. U.S. Assistance to Israel, FY1949-FY1996.................................................................17

Appendix. Recent Aid to Israel.....................................................................................................16
Author Contact Information..........................................................................................................20

For decades, the United States and Israel have maintained strong bilateral relations based on a
number of factors, including strong domestic U.S. support for Israel; shared strategic goals in the
Middle East (concern over Iran, Syria, Islamic extremism); shared democratic values; and historic
ties dating back to U.S. support for the creation of Israel in 1948. U.S. economic and military aid
has been a major component in cementing and reinforcing these ties. Although there have been
occasional differences over Israel’s settlements in the West Bank and Gaza Strip (prior to the
2005 disengagement) and Israeli arms sales to China, successive Administrations and many
lawmakers have long considered Israel to be a reliable partner in the region, and U.S. aid
packages for Israel have reflected this sentiment.
U.S. military aid has helped transform Israel’s armed forces into one of the most technologically
sophisticated militaries in the world. U.S. military aid for Israel has been designed to maintain
Israel’s qualitative edge over neighboring militaries, since Israel must rely on better equipment
and training to compensate for a manpower deficit in any potential regional conflict. U.S. military
aid, a portion of which may be spent on procurement from Israeli defense companies, also has
helped Israel to build a domestic defense industry, which ranks as one of the top ten suppliers of
arms worldwide.
For many years, U.S. economic aid helped subsidize a lackluster Israeli economy, though since
the rapid expansion of Israel’s hi-tech sector in the 1990s (sparked partially by U.S.-Israeli
scientific cooperation), Israel is now considered a fully industrialized nation with an economy on
par with some Western European countries. Consequently, Israel and the United States agreed to
gradually phase out grant economic aid to Israel. In FY2008, Israel will no longer receive
bilateral Economic Support Fund (ESF) grants. It had been a large-scale recipient of grant ESF
assistance since 1971.
The use of foreign aid to help accelerate the Middle East peace process has had mixed results.
The promise of U.S. assistance to Israel and Egypt during peace negotiations in the late 1970s
enabled both countries to take the risks needed for peace, and may have helped convince them
that the United States was committed to supporting their peace efforts. Promoting Israeli-
Palestinian peace has proven to be a far greater challenge for U.S. policy makers, as most analysts
consider foreign aid to be tangential in solving complex territorial issues and overcoming deeply
rooted mistrust sown over decades.
Critics of U.S. aid policy, particularly some in the Middle East, argue that U.S. foreign aid
exacerbates tensions in the region. Many Arab commentators insist that U.S. assistance to Israel
indirectly causes suffering to Palestinians by supporting Israeli arms purchases. In the past, the
United States reduced loan guarantees to Israel in opposition to continued settlement building, but
it has not acted to cut Israel’s military or economic grant aid.
In August 2007, the Bush Administration announced that it would increase U.S. military
assistance to Israel by $6 billion over the next decade. For FY2008, Israel is receiving $2.4 billion
in Foreign Military Financing (FMF). The agreement calls for incremental annual increases in

FMF to Israel, reaching $3.1 billion a year by FY2018.¹ Egypt, traditionally the second largest
recipient of U.S. aid in the Middle East, will receive no corresponding increase in U.S. military
assistance over the same ten-year period. Military analysts speculate that the increase in U.S.
assistance will facilitate potential Israeli purchases of the most sophisticated U.S. equipment, ²
including a possible sale of the F-35 Joint Strike Fighter (JSF). Under the terms of the
agreement, Israel will still be able to spend 26% of U.S. assistance on Israeli-manufactured
equipment. According to Under Secretary of State for Political Affairs Nicholas Burns, who
signed the Memorandum of Understanding on U.S. Military Assistance:
We consider this 30 billion dollars in assistance to Israel to be an investment in peace - in
long-term peace. Peace will not be made without strength. Peace will not be made
without Israel being strong in the future. Of course, our objective as a country and our
specific objective as a government is to contribute to that peace, a peace between Israel
and the Palestinian people, the creation of an independent Palestinian state willing to live
side by side in peace with Israel, and a general peace in the region that has eluded the
Israeli people for 59 years but which is, we hope, the destiny of the Israeli people as well
as the Arab peoples of the region. Our policy in this entire region is dedicated to that final ³
objective.
The Administration timed the announcement of the new ten-year aid agreement to coincide with a
separate deal to sell additional sophisticated weaponry to Saudi Arabia and other Gulf countries.
Since then, U.S. officials have repeatedly stressed that U.S. policy toward Israel is based on
maintaining Israel’s qualitative military edge over its Arab neighbors. Nevertheless, there is some
concern in Congress over the possible sale to Saudi Arabia of precision-guided Joint Direct
Attack Munitions (JDAM), which were sold to Israel in 2007. Israel historically has opposed U.S.
arms sales to Saudi Arabia; however, Israeli Prime Minister Ehud Olmert expressed some support
for the Saudi arms deal when he remarked in July 2007, “We understand the need of the United
States to support the Arab moderate states and there is a need for a united front between the U.S.
and us regarding Iran.”

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^inc^r^e^a^s^e^s^{in m}^ilita^r^y^a^s^sistaⁿ^c^e^,^the^Unite^{d S}^t^a^t^e^s^la^c^k^e^d^the^fⁱ^sc^a^l^fle^x^ibility^{to dra}^m^a^tic^a^l^l^y^inc^r^e^a^se^Isra^e^l^{’s a}ⁱ^{d a}^{ll a}^t
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^dow^ntow^{n T}^e^hr^aⁿ^w^{ithout a}ⁿ^y^one^e^v^eⁿ^k^now^ing^a^{bout it}^sⁱ^nc^e^{it c}^a^n’^{t be}^de^te^c^t^e^d^on^r^a^da^r^.^”^Se^e^,^“^I^s^r^a^e^l^c^{ould g}^e^t
^U^.^S.-^m^a^d^e^F-^{35 je}^ts^by^2012:^R^e^por^t,”^Re^ute^r^s^{, O}^c^tobe^r²⁵^{, 2}⁰⁰⁷^.
³^{R. Nic}^h^o^l^a^s^Burns,^Unde^r^Se^c^r^e^t^a^r^y^of^Sta^t^e^f^o^{r P}^o^li^ti^c^a^l^Aff^a^{irs, “}^R^e^m^a^r^{ks a}^nd^P^r^e^{ss A}^v^a^ila^bilit^y^a^t^Sigⁿ^ing
^Ce^rem^ony^f^o^{r Mem}^o^ra^ndum^of^U^nde^rs^ta^nd^ing^oⁿ^U^.^S^.^Mi^lita^ry^A^s^sⁱ^s^t^aⁿ^c^e^,^”^Re^le^a^s^e^d^b^y^the^A^m^e^r^ic^aⁿ^Em^ba^s^s^y^Te^l
^A^v^iv^{– P}^r^e^s^s^Se^c^tio^{n, A}^u^g^u^s^t¹⁶^,²⁰⁰^7.

Congress has taken measures to strengthen Israel’s security and maintain its “qualitative military
edge” over neighboring militaries. Annual Foreign Military Financing (FMF) grants to Israel
represent over 20% of the overall Israeli defense budget, and FMF levels are expected to increase
incrementally from a baseline of $2.4 billion in FY2008 to approximately $3.1 billion over the
next several fiscal years.
Congress has mandated that Israel receive its FMF aid in a lump sum during the first month of the
fiscal year. Once disbursed, Israel’s military aid is transferred to an interest bearing account with
the Federal Reserve Bank. Israel has used interest collected on its military aid to pay down its
debt (non-guaranteed) to the United States, which, according to the U.S. Treasury Department, ⁴
stood at $1.2 billion as of December 2005. Israel cannot use accrued interest for defense
procurement inside Israel.
Most analysts consider Israel’s ability to use a significant portion of its annual military aid for
procurement spending in Israel to be a valuable aspect of its assistance package; no other ⁵
recipient of U.S. military assistance has been granted this benefit. The proceeds to Israeli defense
firms from purchases with U.S. funds have allowed the Israeli defense industry to achieve
necessary economies of scale and produce highly sophisticated equipment for niche markets.
Defense experts note that high annual amounts of U.S. military assistance force private and semi-
private Israeli defense companies to place a greater business emphasis on exports, since a large
portion of Israeli government weapons procurement is spent on American equipment. According
to Beth McCormick, acting director of the U.S. Defense Technology Security Administration,
Israeli manufacturers must sell as much as 75% of their output abroad to stay profitable, a far ⁶
higher share than U.S. military contractors. Successive Administrations and many lawmakers
believe that a strong domestic Israeli defense industry is crucial to maintaining Israel’s

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^{in FY}¹⁹⁷⁷^{FMF f}^uⁿ^d^s^t^o^de^v^e^lop^the^Me^r^k^a^v^a^ta^nk⁽^p^r^o^to^ty^pe^c^o^m^p^le^te^{d i}ⁿ¹⁹⁷⁵^aⁿ^{d a}^d^de^{d t}^o^I^s^r^a^e^l^{i a}^r^s^e^na^{l in}¹⁹⁷⁹⁾^.
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^Hy^pe^rⁱ^{on, 19}^94,^p^p^{. 26}^3-²^68.
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technological edge over its neighbors. Israel is among the world’s leading arms exporters. In ^th⁷

2006, it was the 9 leading supplier of arms worldwide.

Since FY1988, the FMF procurement earmark for purchases within Israel has been incorporated
into annual foreign assistance legislation. Currently, approximately one quarter of Israel’s FMF
funds may be used for domestic defense purchases ($631.2 million in FY2008). As U.S. military
aid to Israel has increased, the amount set aside for defense purchases in Israel also has increased.
Israel uses almost 75% of its FMF funds to purchase U.S. defense equipment. By law, Congress
must be notified of any new purchase agreement. The Department of Defense’s Defense Security
Cooperation Agency (DSCA) is charged with managing U.S. arms sales to Israel. Recent sales
include the following:
• On October 29, 2007, DSCA notified Congress of a possible Foreign Military
Sale to Israel of missiles and munitions as well as associated equipment and
services. The total value, if all options are exercised, could be as high as $1.329
billion. Israel requested the sale in order to replenish its stocks after its 2006 war
with Hezbollah in Lebanon. The possible sale includes 100 anti-ballistic missile
Patriot Guidance Enhanced Missile Plus; 1,700 Hellfire missiles in three variants;
2,014 TOW 2A radio frequency missiles of two kinds; 5,000 M141 83mm bunker
defeat munitions, and more than 280,000 cartridges of various types. Raytheon
and Hellfire Systems LLC would be the primary contractors.
• On August 24, 2007, DSCA notified Congress of three possible Foreign Military
Sales to Israel. The first proposal was for JP-8 Aviation Jet and Diesel fuel. The
total value, if all options are exercised, could be as high as $308 million. The
second notification was for a possible sale to Israel of Advanced Medium Range
Air-to-Air missiles (AMRAAM). The total value, if all options are exercised,
could be as high as $171 million. Raytheon would be the primary contractor.
Finally, the third notification was for the sale of Harpoon anti-ship and
Sidewinder air-to-air missiles. The total value, if all options are exercised, could
be as high as $163 million. The Boeing Company and Raytheon would be the
primary contractors.
• On August 3, 2007, DSCA notified Congress of a possible Foreign Military Sale
to Israel of various munitions and weapon systems, including 10,000 Joint Direct
Attack Munitions (JDAM) tail kits and GBU-28 bunker buster bombs. The total
value, if all options are exercised, could be as high as $465 million.
In April 1998, the United States designated Israel as a “major non-NATO ally,” which qualifies
Israel to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act
and Section 23(a) of the Arms Export Control Act. DSCA manages the EDA program, which
enables the U.S. to reduce its inventory of outdated equipment by providing friendly countries ⁸
with necessary supplies at either reduced rates or at no charge.

⁷^C^R^S^R^e^por^{t R}^L³⁴¹⁸⁷^,^Con^ven^tⁱ^oⁿ^a^l^A^r^{ms T}^r^an^sf^{ers t}^o^Devel^o^pⁱⁿ^g^Na^tⁱ^on^s,¹⁹⁹⁹^-20⁰⁶^,^b^y^Ri^ch^ard^F^.^G^rⁱ^mmet^t^.
⁸^T^o^{access DSC}^A^{’s Ex}^{cess D}^e^f^eⁿ^s^{e A}^r^ticle^{s d}^a^tab^a^se^{, see h}^ttp^://w^ww^.d^sca.^m^il/^p^r^o^g^ram^s^/^e^d^a^/search^.asp^.

Congress and successive Administrations have shown strong support for joint U.S.-Israeli missile
defense projects. U.S.-Israeli missile defense cooperation has perennially been authorized and
appropriated in the defense authorization and appropriations bills. Missile defense cooperation is
generally not considered a form of direct aid, but many U.S. and Israeli observers consider it a
vital component of the Israel’s strategic relationship with the United States. Israel and the United
States each financially contribute to several projects and share technology from co-developed
weapons systems.
P.L. 110-116, the FY2008 Department of Defense Appropriations Act, provides a total of $155.5
million for U.S.-Israeli missile defense programs. The President had requested $81 million in
funding for FY2008.
Over the past several years, U.S.-Israeli missile defense cooperation has evolved to include the
co-development of several systems designed to thwart a diverse range of threats, from short-range ⁹
missiles and rockets fired by non-state groups, such as Hamas and Hezbollah, to middle and ¹⁰
long-range ballistic missiles in Syria and Iran’s arsenals. Israel also possesses U.S.-supplied
Hawk and Patriot missile batteries. In addition to joint programs, Israel has its own missile
defense programs. Israel is currently developing a short-range system dubbed “Iron Dome” to
destroy crude, Palestinian-made rockets fired by Hamas in the Gaza Strip. Iron Dome is designed
to intercept very short-range threats up to 40 kilometers in all-weather situations.
David’s Sling is a short/medium-range system designed to counter rockets and missiles, such as
those possessed by Hezbollah in Lebanon, fired at ranges from 40 km to 300 km. It is being
jointly developed by Israel’s Rafael Advanced Defense Systems and Raytheon. The system is

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^the^pr^og^ra^m^{($139 m}^illion^{in U}^.^S.^c^ontri^but^io^ns^{), de}^f^e^ns^e^e^x^pe^rts^c^onc^lu^de^{d t}^h^a^t^t^h^e^T^H^EL^prototy^p^e^,^a^ltho^u^g^h
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^No^r^t^h^r^o^p^G^r^u^m^m^aⁿ^w^hⁱ^c^h^cr^eat^e^d^“S^kygu^ar^d^,^{”a m}^o^r^e^p^o^w^er^f^u^l^ve^r^sⁱ^oⁿ^o^f^t^h^{e THE}^L^.^Nev^e^r^t^h^e^l^e^ss,^I^s^r^ael^’^s^Mⁱⁿⁱ^st^r^y
^of^D^e^f^e^ns^e^be^lie^v^e^s^tha^t^Sky^g^u^a^r^{d d}^o^e^sⁿ^o^{t f}^unc^tioⁿ^opt^im^a^l^l^y^{in ba}^{d w}^e^a^t^he^r^.^Se^e^,^“^U^{.S. a}^{nd I}^s^r^a^e^l^She^l^v^e^{d L}^a^s^e^r^A^s^a
^Defen^s^e,^”^{New Yo}^{rk Times}^{, J}^u^ly^30,²⁰⁰⁶^.
¹⁰^In^t^h^{e m}ⁱ^d¹⁹⁹⁰^s^,^t^h^{e U.}^S^.^Aⁱ^{r F}^o^{rce an}^al^y^zed^al^t^e^rn^atⁱ^v^es^f^o^{r a t}^h^eat^{er m}ⁱ^ssi^l^e^d^e^f^eⁿ^s^{e s}^y^st^e^m^t^h^at^c^o^u^l^dⁱⁿ^t^e^rcep^t
^mⁱ^s^sⁱ^l^e^{s sh}^o^r^t^l^y^a^f^t^e^{r l}^a^uⁿ^c^h^,^w^h^en^t^h^ey^{are t}^h^{e m}^o^st^vu^lⁿ^erab^l^e^.^{In Ju}ⁿ^e¹⁹⁹⁷^,^t^h^{e Uni}^t^e^d^S^t^at^{es an}^d^Israel^b^e^gan^a
^joint^r^e^s^e^a^r^c^h^pr^og^r^a^m^{to de}^v^e^lop^a^f^l^e^e^t^of^unm^a^nne^{d a}^e^r^ia^{l v}^e^hic^l^e^s⁽^U^A^V^s⁾^tha^t^c^o^ul^{d de}^liv^e^r^w^e^apons^tha^t^w^oul^d
ⁱⁿ^tercep^{t b}^a^ll^{istic m}ⁱ^{ssiles i}^mmedⁱ^atel^y^a^f^{ter lau}ⁿ^c^h^(b^o^o^s^t^p^h^{ase). In}^{late 1}⁹⁹⁹^,^ap^p^a^ren^tly^b^ecau^{se o}^f^th^{e co}^m^p^lex^ities
^of^the^te^c^hno^log^y^inv^o^lv^e^d^a^nd^di^sa^g^r^e^e^m^eⁿ^{ts be}^twe^eⁿ^the^Unite^d^Sta^t^e^s^a^{nd Isra}^e^l^ov^e^r^the^poteⁿ^tia^{l m}^e^{rits of}^the
^sy^s^t^em^{, I}^s^r^a^e^l^de^cⁱ^de^{d n}^o^{t t}^o^m^o^v^e^tow^a^r^d^f^u^{ll de}^m^ons^tr^a^tion^of^the^B^oos^t^Pha^s^e^Iⁿ^te^r^c^e^p^{t s}^y^s^t^em^{. C}^ong^r^e^s^s^pr^ov^ide^d^a
^tota^{l of}^$^{53 m}^illio^{n f}^o^{r the}^B^oost^Pha^s^e^Inte^rc^e^p^{t p}^r^og^ra^m^.

expected to be operable by 2010. P.L. 110-116 provides $37 million for a short range missile
defense program.
Since 1988, Israel and the United States have been developing the Arrow Anti-Missile System, a
weapon with a theater ballistic missile defense capability. The United States has funded just under
half of the annual costs of the development of the Arrow Weapon System, with Israel supplying
just over half of the annual costs. The Arrow II program, a joint effort of Boeing and Israel
Aerospace Industries (IAI), is designed to defeat longer-range conventional ballistic missiles. Of
the total $155 million provided for U.S.-Israeli missile defense in the FY2008 Defense
Appropriations Act (P.L. 110-116), $98 million is allocated for the Arrow II program, of which
“$37,383,000 shall be available for the purpose of producing Arrow missile components in the
United States and Arrow missile components and missiles in Israel.”
Fearing a potential nuclear threat from Iran, Israel has sought a missile interceptor that operates at
a higher altitude and greater range than the Arrow. P.L. 110-116 provides $20 million for “risk
mitigation and preliminary design activities for an upper-tier component to the Israeli Missile
Defense Architecture.” In October 2007, the United States and Israel agreed to establish a
committee to evaluate Israel’s proposed “Arrow-3,” a top-tier system designed to intercept
advanced missiles with nuclear-tipped warheads
Table 1. Defense Budget Appropriations for U.S.-Israeli Missile Defense: FY2006-
FY2008
^{($ in mill}^ions)
^{System Type}^FY20⁰⁶^FY20⁰⁷^FY20⁰⁸
^{Short-Range $10.0}^$20.4^$37.0
^{Arrow $12}^2.86⁶^$11^7.49⁴^$98.5⁷²
^{High Altitude}^—^—^$20.0
^{Total $13}^2.86⁶^$13^7.89⁴^$15^5.57²

Although U.S. assistance to Israel has remained high for several decades, there have been some
instances when the United States acted to restrict aid or rebuke Israel for possible improper use of
U.S.-supplied military equipment. The 1952 Mutual Defense Assistance Agreement and
subsequent arms agreements between Israel and the United States limit the use of U.S. military
equipment to defensive purposes. The Arms Export Control Act states that the United States may
stop aid to countries which use U.S. military assistance for purposes other than “legitimate self-
defense.” In 1982, the Reagan Administration determined that Israel “may” have violated its 1952
Mutual Defense Assistance Agreement with the United States by reportedly using U.S.-supplied

anti-personnel cluster bombs against civilian targets during its military operations in Lebanon and ¹¹
the siege of Beirut. As a result, the Reagan Administration prohibited U.S. export of cluster ¹²
bombs to Israel for six years.
During the July-August 2006 war in Lebanon, Israel used cluster munitions to counter Hezbollah
rocket attacks. The United States apparently supplied some of the cluster weapons that Israel used ¹³
in the conflict. Since the August 2006 Israeli-Hezbollah cease-fire, there have been a number of
reported Lebanese civilian deaths and injuries from unexploded bomb remnants spread across a
wide area of southern Lebanon. After the war, the U.S. Department of State’s Office of Weapons
Removal and Abatement implemented a landmine and unexploded ordnance (UXO) humanitarian
clearance program in Lebanon.
The Department of State’s Directorate of Defense Trade Controls reportedly conducted an
investigation focused on whether Israel violated confidential agreements with the United States
that restrict Israel’s use of U.S.-supplied cluster munitions to certain military targets in non-
civilian areas. On January 28, 2007, the State Department issued a preliminary report to Congress
concluding that Israel may have violated the terms of classified U.S.-Israeli procurement
agreements on the use of cluster bombs in populated areas. According to State Department
spokesman Sean McCormack, “There were likely violations,” though he added that “This is a
preliminary finding and because it also involves the agreements about use (of munitions), which ¹⁴
are classified, I cannot get into the details.” The State Department has reportedly asked Israel
for additional information on reports that Israeli troops violated orders that restricted how U.S.-¹⁵
manufactured cluster bombs could be used during the summer 2006 war.
In December 2007, the IDF concluded its investigation into its 2006 use of cluster bombs stating
that “It was clear that the majority of the cluster munitions were fired at open and uninhabited
areas, areas from which Hezbollah forces operated and in which no civilians were present.... The
use of this weaponry was legal once it was determined that, in order to prevent rocket fire onto
Israel, its use was a concrete military necessity.” The IDF also announced that it would not press
charges against officers who ordered the use of cluster bombs during the 2006 war.
H.R. 2764, the FY2008 Consolidated Appropriations bill, would significantly restrict the export
of U.S.-manufactured cluster munitions. Section 646 (b) of the bill states that “no military
assistance shall be furnished for cluster munitions, no defense export license for cluster munitions
may be issued, and no cluster munitions or cluster munitions technology shall be sold or
transferred, unless (1) the submunitions of the cluster munitions have a 99 percent or higher
tested rate; and (2) the agreement applicable to the assistance, transfer, or sale of the cluster

¹¹^{See, CRS Rep}^o^{rt RL}³⁰⁹⁸²^,^U^.^S.^D^e^fe^ns^e^Ar^tic^le^s^and^Se^r^v^ic^e^s^Su^pplie^{d to}^For^eⁱ^{gn Re}^cⁱ^pieⁿ^ts^:^Re^s^t^rⁱ^c^tions^on^Theⁱ^r
^Use^,^b^y^Ri^ch^ard^F^.^G^rⁱ^m^m^e^t^t^.
¹²^T^h^e^R^e^a^g^aⁿ^A^d^mⁱ^nis^t^r^a^{tion a}^l^s^o^te^m^por^a^r^il^y^s^u^s^p^e^nde^{d t}^h^e^de^liv^e^r^y^o^f^F-^{16 a}ⁱ^r^c^r^a^f^t^{to I}^s^r^a^e^l^a^f^te^r^{it bom}^be^{d the}
^Iraqⁱ^nu^cl^{ear react}^o^r^at^Osi^r^{ak i}ⁿ¹⁹⁸¹^.
¹³^David^S^.^Cl^o^u^d^,^“Inq^uⁱ^ry^Op^en^e^d^In^t^o^{Israeli Use Of}^U.^S^.^Bo^m^b^s,^”^{New Yo}^{rk Times}^A^u^gu^st²⁵^,²⁰⁰⁶^.^Aⁿ^A^u^gu^st²⁶^,
²⁰⁰^6,^pr^e^s^eⁿ^ta^tioⁿ^by^Uⁿ^ite^{d N}^a^tions^Mⁱ^ne^A^c^{tion C}^oor^dina^ti^on^C^e^nte^r⁽^U^N^M^A^S⁾^Sout^{h L}^e^ba^noⁿ^of^fⁱ^c^e^ca^ta^log^u^e^d
^the^f^o^llowⁱ^ng^num^be^rs^of^U^.^S.-m^a^nuf^a^c^t^ure^d^c^l^us^te^{r w}^e^a^{pon s}^ub-^m^unitions^duriⁿ^g^s^u^rv^e^y^s^{in s}^o^u^t^h^e^{rn L}^e^ba^non
^(s^ourc^e^w^e^a^ponsⁱⁿ^pa^re^nthe^s^e^s⁾^:⁷¹⁵^M-^42’s⁽¹⁰⁵^-m^illim^e^t^e^r^a^r^tille^r^y^s^h^e^lls^{), 82}^{0 M-}^77’s⁽^M^-2^{6 ro}^c^k^e^t^s⁾^{, a}^{nd 5 BL}^U^-
^63’^s⁽^C^B^U^-²^{6 c}^l^us^te^r^bom^bs⁾^.^T^h^e^U^N^M^A^S^te^am^s^a^l^s^o^r^e^por^te^d⁶³^{1 M-}^{85 I}^s^r^a^e^li-^pr^od^uc^e^d^s^u^b-^m^uⁿ^itions^ha^d^be^eⁿ
^f^ound.^Se^e^,^U^N^M^A^S^Sout^{h L}^e^ba^non^{, “}^C^lus^t^e^r^B^o^m^b^Situa^tⁱ^oⁿ^-^S^out^{h L}^e^ba^non^J^u^ly^/A^ug^us^{t 2006}^,”^A^u^g^u^s^t^26,²⁰⁰⁶^.
¹⁴^“U.^S^.^S^a^y^s^Israel^M^a^y^H^a^{ve V}ⁱ^o^l^at^ed^A^g^r^e^e^m^en^t^oⁿ^Cl^u^s^t^e^{r B}^o^m^b^Use,^”^Re^ute^r^s^{, J}^a^nua^r^y^{29, 2}⁰⁰⁷^.
¹⁵^“Israel^M^a^y^h^a^{ve V}ⁱ^o^l^at^ed^A^r^{ms P}^act^,^U.^S^.^S^a^y^s^,^”^{New Yo}^{rk Times}^{, J}^a^nua^r^y^{28, 2}⁰⁰⁷^.

munitions or cluster munitions technology specifies that the cluster munitions will only be used
against clearly defined military targets and will not be used where civilians are known to be
present.”
On September 6, 2007, the President objected to efforts by lawmakers to ban the export of cluster
munitions. In a statement of Administration policy, the President wrote “The Administration also
objects to restrictions on providing military assistance for cluster munitions.... Currently, the sales ¹⁶
of cluster munitions are subject to safeguards.
Over the last two decades, the United States and Israel have disagreed over Israeli sales of
sensitive U.S. technologies to China. U.S. objections have largely been communicated by
successive Administrations and Pentagon officials, though in recent years, some Members of
Congress expressed dissatisfaction over one reported sale. In 2000, Representative Sonny
Callahan, former Chairman of the House Appropriations Subcommittee on Foreign Operations,
sought to withhold $250 million in aid to Israel unless it cancelled a planned sale to China of an ¹⁷
Airborne Early Warning System. On June 20, 2000, the House Foreign Operations ¹⁸
Subcommittee voted nine to six to defeat Callahan’s proposal. In 2005, the United States
suspended Israel from participating in the development of the Joint Strike Fighter (JSF) and
imposed other restrictions in defense ties because of Israeli plans to upgrade Chinese Harpy Killer
drone aircraft. Israel ultimately canceled the sale.
In order to create a more transparent arms transfer process, former U.S. Defense Secretary
Donald Rumsfeld and former Israeli Defense Minister Shaul Mofaz signed a 2005 bilateral
agreement mandating Israeli consultation with the U.S. government on sensitive arms transfers to
third parties. The Israeli government also has established its own arms export controls agency to
supervise military sales. In 2006, Israel reportedly froze a $100-million contract with Venezuela
to upgrade its U.S.-manufactured F-16 fighter jets due to U.S. pressure. According to one former
U.S. official, “We don’t officially acknowledge our supervisory role or our de facto veto right
over their exports.... It’s a matter of courtesy to our Israeli friends, who are very serious about ¹⁹
their sovereignty and in guarding their reputation on the world market.”
Continued Israeli settlement building led the United States to reduce the amount of loans it has
extended to Israel. By law, U.S. loan guarantees cannot be used to finance Israeli settlement
building in areas occupied after the 1967 War. In the mid-1990s and then again in 2003, the

¹⁶^“^S^ta^te^m^e^{nt of}^A^d^mⁱ^nis^t^r^a^tion^Po^lic^y^{, H}^.^R^.²⁷⁶⁴^{– Sta}^t^e^,^For^e^igⁿ^O^p^e^r^a^tions^{, a}^{nd R}^e^la^te^d^P^r^og^r^a^m^s^A^ppr^opr^ia^ti^ons
^A^c^{t, 2008,”}^O^f^fⁱ^c^e^of^Ma^na^gem^e^{nt a}ⁿ^{d B}^u^dg^e^t^{, Se}^pte^m^be^r^6,²⁰⁰⁷^.
¹⁷^Er^ic^Pⁱ^aⁿⁱⁿ^{, “}^I^s^r^a^e^l^-^C^hi^na^R^a^da^r^D^e^a^l^O^ppos^e^d^,”^Wa^s^hⁱⁿ^g^t^on^Po^st^{, A}^p^r^{il 7,}²⁰⁰⁰^.
¹⁸^A^c^c^o^r^d^ing^t^o^the^H^ous^e^C^o^m^m^itt^e^e^,^“^t^he^C^o^m^m^itte^e^is^v^e^r^y^dis^t^ur^be^{d by}^r^e^por^ts^t^h^a^t^I^s^r^a^e^l^is^pr^e^p^a^r^ing^to^pr^ovⁱ^d^e
^Chⁱⁿ^{a w}ⁱ^t^h^an^ai^r^b^o^rⁿ^e^rad^a^{r sy}^st^e^m^t^h^at^co^u^l^d^t^h^reat^en^bo^t^h^t^h^{e f}^o^{rces o}^f^d^e^m^o^cratⁱ^c^T^aⁱ^w^an^an^d^t^h^{e Un}ⁱ^t^e^d^S^t^at^{es i}ⁿ
^the^re^gⁱ^{on s}^u^rro^un^ding^t^h^e^T^aⁱ^w^aⁿ^Stra^it.^T^h^e^Com^m^itte^e^inte^nds^t^o^re^vⁱ^{sit this}^issue^a^s^the^a^p^pro^p^ri^a^tions^proc^e^ss
^m^o^v^e^s^f^o^rw^ard^.^{” H.}^Rep^t^.¹⁰⁶^-⁷²⁰^,^acco^m^p^an^yⁱⁿ^g^H.^R.⁴⁸¹¹⁽^P^.^L^.¹⁰⁶^-⁴²⁹⁾^,^t^h^e^F^Y²⁰⁰¹^F^o^rei^gⁿ^Op^eratⁱ^oⁿ^s
^A^ppr^opr^ia^ti^ons^A^c^t.
¹⁹^{“ U.}^S^.^{OKs Israel}^-Chⁱⁿ^a^S^p^y^S^a^t^Deal^,^”^Def^eⁿ^s^eNews.^co^m^{, O}^c^tobe^{r 12}^{, 2}⁰⁰⁷^.

United States reduced loan guarantees to Israel by an amount equal to Israel’s estimated spending
on settlement construction in the West Bank and Gaza Strip.

Beginning in 1973, Israel has received grants Migration and Refugee Assistance
from the State Department’s Migration and ²⁰Funding Levels
Refugee Assistance fund (MRA) to assist in ^FY2000:^$60^million
the resettlement of humanitarian migrants to
Israel. Funds are paid to the United Israel ^FY2001:^$60^million
Appeal, a private philanthropic organization in ^FY2003:^$60^million
the United States, which in turn transfers the ²¹^FY2004:^$59.6^million
funds to the Jewish Agency. Between 1973
and 1991, the United States gave about $460 ^FY2005:^$49.7^million
million for resettling Jewish refugees in Israel. ^FY2006:^$50^million
Annual amounts have varied from a low of ^FY2007^$40^million
$12 million to a high of $80 million, based on
the number of Jews leaving the former Soviet ^FY2008:^$40^million
Union and other areas for Israel. The Refugee ^Source:^{U.S. State Department.}
and Migration funds for Israel are earmarked ^Note:^{The level of funding reflec}^{ts a decline in need due}
by Congress; the Administration usually does ^{to the overall decreasing n}^umbe^r^s^{of migrants to Is}^rael.

not request specific amounts of Refugee and
Migration assistance for Israel.
Congress has changed the earmark language since the first refugee resettlement funds were
appropriated in 1973. At first, the congressional earmark said the funds were for “resettlement in
Israel of refugees from the Union of Soviet Socialist Republics and from Communist countries in
Eastern Europe.” But in 1985, the language was simplified to “refugees resettling in Israel” to
ensure that Ethiopian Jews would be covered by the funding. Technically, the earmark designates
funds for refugee resettlement, but in Israel little differentiation is made between “refugees” and
other immigrants, and the funds are used to support the absorption of all immigrants.
According to the FY2008 Congressional Budget Justification for Foreign Operations, the FY2008
MRA request for Israel includes $40 million to support a package of services designed to promote
integration of approximately 11,500 migrants into Israeli society, including transportation to
Israel, Hebrew language instruction, transitional housing, education, and vocational training.

²⁰^T^h^e^R^e^f^uge^e^a^{nd Mig}^r^a^{tion A}^c^c^oun^{t (}^M^R^A⁾^is^a^u^th^or^iz^e^d^a^s^pa^r^t^of^the^Sta^t^e^D^e^pa^r^t^m^e^{nt f}^unding^b^u^{t is}^a^p^pr^o^p^rⁱ^a^t^e^d
^thr^o^ug^{h t}^h^e^For^e^ig^{n O}^p^e^r^a^tio^ns^A^ppr^opr^ia^ti^ons^bill^.
²¹^T^h^e^Je^wⁱ^{sh Ag}^eⁿ^c^y^’s^we^bsite^{is a}^v^a^ila^ble^a^t^http://w^ww^.ja^f^i.org^.^il/.

Since 1972, the United States has extended loan guarantees to Israel to assist with housing
shortages, Israel’s absorption of new immigrants from the former Soviet Union and Ethiopia, and
its economic recovery following the 2000-2003 recession sparked by the renewal of Palestinian
uprising. Loan guarantees are a form of indirect U.S. assistance to Israel, since they enable Israel
to borrow from commercial sources at lower rates and not from the United States government.
Congress directs that subsidies be set aside in a U.S. Treasury account for possible default. These
subsidies, which are a percentage of the total loan (based in part on the credit rating of the
borrowing country; in the case of the loan guarantees in the 1990s, the subsidy amount was

4.1%), have come from the U.S. or the Israeli government. Israel has never defaulted on a U.S.-

backed loan guarantee, as it needs to maintain its good credit rating in order to secure financing to
offset annual budget deficits.
In 2003, Prime Minister Ariel Sharon requested an additional $8 billion in loan guarantees to help
Israel’s failing economy. The loan guarantee request accompanied a request for an additional $4
billion in military grants to help Israel prepare for possible attacks during an anticipated U.S. war
with Iraq and Israeli efforts to end the Palestinian uprising. P.L. 108-11, the FY2003 Emergency
Wartime Supplemental Appropriations Act, included $9 billion in loan guarantees over three years
for Israel’s economic recovery and $1 billion in military grants. P.L. 108-11 stated that the
proceeds from the loan guarantees could be used only within Israel’s pre-June 1967 borders, that
the annual loan guarantees could be reduced by an amount equal to the amount Israel spends on
settlements in the occupied territories, that Israel would pay all fees and subsidies, and that the
President would consider Israel’s economic reforms when determining terms and conditions for
the loan guarantees. On November 26, 2003, the Department of State announced that the $3
billion loan guarantees for FY2003 were reduced by $289.5 million because Israel continued to
build settlements in the occupied territories and continued construction of the security barrier
separating the Israelis and Palestinians. No other deductions have been made.
P.L. 108-447, the FY2005 Consolidated Appropriations Bill, first extended the authority of the
loan guarantees from FY2005 to FY2007. In the aftermath of the 2006 Israel-Hezbollah conflict,
President Bush stated that he would ask Congress to again extend the authorization of loan
guarantees to Israel. P.L. 109-472, the 2006 Department of State Authorities Act, extends the
authority to provide loan guarantees through FY2010. Israel has not any borrowed funds since
FY2005.

Table 2. Loan Guarantees for Economic Recovery
^{($ in mill}^ions)
^Authorized^{Reduction f}^or^Amou^{nt Borr}^owed
^Year^{P.L. 1}^08-1¹^Set^tlem^{ent Activit}^y^{by Israel}
^{FY2003 3,00}⁰^289.⁵^1,60⁰
^{FY2004 3,00}⁰^—^1,75⁰
^{FY2005 3,00}^0/1,0⁰⁰^a^—⁷⁵⁰
^{FY2006 1,00}⁰^—
^{FY2007 1,00}⁰^—
^{Total 9,00}⁰^289.⁵^4,10⁰
^Year^Extended^{Reduction f}^or^Amou^{nt Borr}^owed
^{Authorization}^b^Set^tlem^{ent Activit}^y^{by Israel}
^{P.L. 1}^09-4⁷²
^{FY2006 400}^—^—
^{FY2007 400}^—^—
^{FY2008 400}^—^—
^{FY2009 400}^—^—
^{FY2010 400}^—^—
^Total^2,00^{0 (+ 2,6}^{00 unspent funds)}^—^—
^Source:^{U.S. State Department.}
^a.^{Under the original aut}^{horizing legislati}^{on, Israel was permitted to b}^{orrow $3}^billi^{on in FY200}^{5. P.L. 108-}⁴⁴⁷
^{extended th}^{e overall time frame f}^{or the loan guara}^{ntees, and t}^he^{United States allotted $1 billi}^on
^increments^{for Is}^{rael to draw on}^{in fiscal years 2}⁰⁰^5-2⁰⁰^7.
^b.^{From FY200}^3-FY200^{5, app}^roxim^{ately $4.6}^billi^{on in loan guarante}^{es remained u}ⁿ^s^pent^{by I}^{srael. Of}^that
^{amount, $2.6}^{billion had been ca}^r^{ried over from pr}^{evious years a}ⁿ^d^{had already met certain}^financia^l
^benc^hmarks^established^{by a Joint}^U.S.-Israel^{i Economic Group}^{overseeing the}^{loan guara}^{ntees. Beca}^use
^{Israel has already me}^{t suc}^{h c}^{riteria, it can draw on the}^$2.6^{billion at any time. The remai}^{ning $}²^{billion in}
^{authorized loan guarantee}^{s has}^b^{een ap}^{portioned out by}^{the U.S. government}^{in $}⁴⁰⁰^{million increments}
^{from FY200}^6-FY20^10.

Through Foreign Operations appropriations legislation, Congress has funded the ASHA program
as part of the overall Development Assistance (DA) appropriation to the United States Agency for
International Development (USAID). According to USAID, ASHA is designed to strengthen self-
sustaining schools, libraries and medical centers that best demonstrate American ideas and
practices abroad. ASHA has been providing support to institutions in the Middle East since 1957,
and there are a number of Israeli universities and hospitals that have been recipients of ASHA
grants. Over the past several years, Israeli institutions, such as the Shaare Zedek Medical Center

²²^A^c^c^o^rding^t^o^USA^I^{D, re}^cⁱ^pieⁿ^ts^of^A^S^H^A^g^r^aⁿ^{ts on be}^ha^lf^of^ov^e^r^se^a^s^instituti^{ons m}^u^{st be}^pr^iv^a^t^e^U.S.
^o^r^ganⁱ^zatⁱ^oⁿ^s^,^h^ead^qu^art^e^redⁱⁿ^t^h^{e Un}ⁱ^t^e^d^S^t^at^es,^an^d^t^a^x-exe^m^p^t^.^T^h^{e U.}^S^.^o^r^ganⁱ^zatⁱ^oⁿ^m^u^st^al^so^{serve as t}^h^e
^f^ounde^{r f}^o^{r a}ⁿ^d^/^{or s}^p^oⁿ^s^o^r^of^the^ov^e^r^s^e^a^s^ins^titutio^n.^Sc^ho^ols^m^u^s^t^be^f^o^{r s}^e^c^onda^ry^{or hig}^h^e^r^e^d^uc^a^tion^aⁿ^d^h^o^s^p^ita^l
^c^eⁿ^te^r^s^m^u^s^t^c^onduc^{t m}^e^dic^a^l^e^d^u^c^a^{tion a}ⁿ^{d r}^e^s^e^a^r^c^h^ou^ts^ide^t^h^e^Uⁿ^ite^d^Sta^t^e^s^{. G}^r^aⁿ^ts^a^r^e^m^a^de^{to U}^.^{S. s}^p^ons^or^s^f^o^r
^the^e^x^c^l^usiv^e^be^ne^f^{it of}^instituti^oⁿ^{s a}^b^roa^d^{. Se}^e^h^ttp^:^//www^.usa^id.g^ov^/our_w^ork^/^c^r^oss-c^u^tting^_^p^rog^r^a^m^s/^a^s^ha^/.

in Jerusalem and the Hadassah Medical Organization, have received ASHA funding. The
Hadassah Medical Organization was nominated for the 2005 Nobel Peace Prize for its equitable
treatment of Palestinians and Israelis patients. According to USAID, institutions based in Israel
have received the most program funding in the Middle East region.
Table 3. ASHA Program Grants to Israeli Institutions, FY2000-FY2005
^{Fiscal year}^Amou^nt
^{FY2000 $2.75}^million
^{FY2001 $2.25}^million
^{FY2002 $2.65}^million
^{FY2003 $3.05}^million
^{FY2004 $3.15}^million
^{FY2005 $2.95}^million
^{Total $16.8}^mil^lion
^Source:^USAID.
In the early1970s, Israeli academics and businessmen began looking for ways to expand
investment in Israel’s high technology sector. At the time, Israel’s nascent technology sector,
which would later on become the driving force in Israel’s economy, was in need of private capital
for research and development. The United States and Israel launched several programs to
stimulate Israeli industrial and scientific research, and Congress has on several occasions
authorized and appropriated funds for the following organizations:
• The BIRD Foundation (Israel-U.S. Binational Research & Development ²³
Foundation). BIRD, which was established in 1977, provides matchmaking
services between Israeli and American companies in the field of Research and
Development with the goal of expanding cooperation between U.S. and Israeli
private high tech industries.
• The BSF Foundation (U.S.-Israel Binational Science Foundation).²⁴ BSF, which
was started in 1972, promotes cooperation in scientific and technological
research.
• The BARD Foundation (Binational Agriculture and Research and Development
Fund). BARD was created in 1978 and supports U.S.-Israeli cooperation in ²⁵
agricultural research.

²³^Se^e^htt^p^://w^w^w^.birdf^.c^o^m^/^d^e^f^a^u^lt.a^s^{p. Co}^ng^re^s^s^he^lpe^d^e^s^ta^bl^is^h^BIRD^’s^e^ndow^m^e^{nt w}^{ith a}^ppro^p^rⁱ^a^tions^of^$3⁰
^m^{illion a}^nd^$1^{5 m}^illio^{n in}¹⁹⁷⁷^a^nd¹⁹⁸⁵^re^spe^c^tiv^e^l^y^.^T^h^e^s^e^g^r^aⁿ^{ts w}^e^r^e^m^a^tc^he^{d by}^the^Isra^e^{li g}^ove^rnm^e^{nt f}^o^{r a}^tota^l
^e^ndow^m^e^{nt of}^$9^{0 m}^illion.
²⁴^Se^e^htt^p^://w^ww^.bs^f^.org^.il/G^a^t^e^w^a^y^{4/. Cong}^re^{ss he}^lpe^d^e^s^ta^blish^{BSF’s e}ⁿ^d^o^wm^eⁿ^{t w}^{ith a}^ppro^p^ria^tⁱ^ons^of^$30
^m^{illion a}^nd^$2^{0 m}^illio^{n in}¹⁹⁷²^a^nd¹⁹⁸⁴^re^s^p^e^c^tiv^e^l^y^.^T^h^e^s^e^g^r^aⁿ^ts^w^e^r^e^m^a^tc^he^{d by}^Is^rae^l^f^o^{r a}^tota^{l e}^ndow^m^e^{nt of}
^$10^{0 m}^illio^{n. A}^c^c^o^rding^to^the^tr^e^a^t^y^e^s^ta^blishing^the^F^o^u^nda^ti^on,^the^Fo^un^da^tio^{n sha}^l^{l use}^t^h^e^inte^r^e^{st, a}^s^we^{ll a}^s^aⁿ^y
^f^unds^de^riv^e^{d f}^r^om^its^a^c^tiv^itie^s^,^{for the}^ope^ra^ti^ons^of^the^Fo^un^da^tio^n.
²⁵^Se^e^htt^p^://w^w^w^.ba^r^d-is^us^.c^om^/^.^Cong^re^s^s^he^lpe^d^e^s^ta^bl^is^{h BA}^RD^’s^e^ndow^m^e^{nt w}^{ith a}^ppr^opria^ti^on^s^of^$40^m^illion
⁽^c^onti^nue^d.^..)

Section 917 of P.L. 110-140, the Renewable Fuels, Consumer Protection, and Energy Efficiency
Act of 2007, contains the original language of the U.S.-Israel Energy Cooperation Act (H.R.
1838). Although it does not appropriate any funds for joint research and development, it does
establish a grant program to support research, development, and commercialization of renewable
energy or energy efficiency. The law also authorizes the Secretary of Energy to provide funds for
the grant program as needed.

U.S. government assistance to Israel began in 1949 with a $100 million Export-Import Bank ²⁶
Loan. For the next two decades, U.S. aid to Israel was modest and was far less than in later ²⁷
years. Although the United States provided moderate amounts of economic aid (mostly loans),
Israel’s main early patron was France, which provided Israel with advanced military equipment ²⁸
and technology. In 1962, Israel purchased its first advanced weapons system from the United ²⁹
States (Hawk antiaircraft missiles). In 1968, a year after Israel’s victory in the Six Day War in
June 1967, the Johnson Administration, with strong support from Congress, approved the sale of
Phantom aircraft to Israel, establishing the precedent for U.S. support for Israel’s qualitative ³⁰
military edge over its neighbors.
Large-scale U.S. assistance for Israel increased considerably after Arab-Israeli wars created a ³¹
sense among many Americans that Israel was continually under siege. Consequently, Congress,
supported by broad U.S. public opinion, committed to strengthening Israel’s military and
economy through large increases in foreign aid. From 1966 through 1970, average aid per year
increased to about $102 million and military loans increased to about 47% of the total. In 1971,

^(...c^on^tin^ue^d)
^a^{nd $}¹⁵^m^{illion i}ⁿ¹⁹^{79 a}^nd¹⁹⁸⁵^re^spe^c^tiv^e^l^y^.^T^h^e^s^e^g^r^aⁿ^ts^w^e^re^m^a^tc^he^{d by}^the^Sta^t^e^of^Isra^e^l^f^o^{r a}^tota^{l e}ⁿ^dow^m^e^nt
^o^f^$¹¹⁰^m^illioⁿ^.^In^recen^{t y}^ear^{s, Co}ⁿ^g^{ress h}^a^{s p}^r^o^vⁱ^d^ed^f^unds^f^o^r^B^A^R^D^{in a}^nnua^{l A}^g^rⁱ^c^u^ltur^e^A^ppr^opr^ia^ti^ons
^le^gⁱ^s^l^a^{tion a}^t^a^p^pr^ox^im^a^t^e^l^y^$500^,00⁰^a^y^e^a^r^.
²⁶^In¹⁹⁴⁸^,^P^r^esi^d^en^t^Harry^T^r^u^m^an^,^w^h^o^sym^p^at^hⁱ^zed^wⁱ^t^h^t^h^{e p}^lⁱ^g^h^t^o^f^Israelⁱⁿⁱ^t^s^earl^y^d^a^y^s^,^p^l^aced^an^arm^s
^em^ba^r^g^{o on I}^s^r^a^e^l^aⁿ^d^he^r^A^r^a^bⁿ^e^ig^hbor^sⁱⁿ^or^de^r^t^o^k^e^e^p^the^Uⁿ^it^e^d^Sta^t^e^s^ne^utr^a^lⁱⁿ^the^ong^oi^ng^A^r^a^b^-^I^s^r^a^e^li
^c^onf^lic^{t. T}^h^e^T^r^ipa^r^tite^De^c^l^a^r^a^{tion of}¹⁹⁵⁰^re^a^f^fⁱ^r^m^e^d^U.^{S., British}^,^a^nd^Freⁿ^c^h^op^posi^tio^{n t}^o^t^h^e^de^v^e^lopm^eⁿ^{t of}
^A^r^ab^-Isra^elⁱ^ar^m^s^race^s.
²⁷^From¹⁹⁴^{9 t}^h^ro^ug^h¹⁹^65,^U^.^{S. a}ⁱ^{d to}^Is^ra^e^l^a^v^e^r^ag^e^d^a^bout^$^{63 m}^illion^pe^{r y}^e^a^r^{, ov}^e^r^95%^of^w^h^ic^{h w}^a^s^ec^onom^ic
^de^v^e^lopm^eⁿ^{t a}^s^sⁱ^s^t^aⁿ^c^e^a^{nd f}^ood^aⁱ^{d. A}^m^ode^s^t^m^ilita^r^y^loaⁿ^prog^r^a^m^be^g^a^{n in 1}⁹⁵⁹^.
²⁸^Fraⁿ^c^e^s^u^p^p^lie^d^Is^ra^e^l^w^{ith m}^ilit^a^r^y^e^quipm^eⁿ^{t m}^a^inly^{to c}^ounte^r^Egy^p^{t. In t}^h^e¹⁹⁵⁰^s^aⁿ^d^e^a^r^ly¹⁹⁶^0s^{, Eg}^y^p^t
^an^t^a^goⁿⁱ^zed^F^r^an^ce^b^y^p^r^o^vⁱ^dⁱⁿ^g^ar^m^s^an^d^t^r^aiⁿⁱⁿ^g^f^o^{r A}^l^g^e^ri^a’s^{war f}^o^{r i}ⁿ^d^e^p^e^nd^en^{ce agai}ⁿ^s^t^F^r^an^c^e^.
²⁹^“Ameri^{ca’s S}^t^auⁿ^c^h^e^st^Mⁱ^d^east^A^l^l^y^,^”^{Christian Sc}^ie^nc^e^M^oⁿ^itor^,^A^u^g^u^s^t^21,²⁰⁰³^.
³⁰^Se^c^tion³⁰³^of^P.L^.^90-⁵⁵^4,^F^o^r^e^{ign As}^sⁱ^s^t^anc^e^Ac^{t of 19}⁶⁸^,^exp^r^{esses t}^h^{e sen}^s^{e o}^f^Coⁿ^g^{ress t}^o^{see t}^h^{e Un}ⁱ^t^e^{d S}^t^at^es
^ne^g^o^tia^te^the^sa^le^of^supe^rsoⁿ^ic^aⁱ^rc^ra^f^t^{to Isra}^e^l^.
³¹^Be^tw^ee^{n 19}^{67 a}^nd¹⁹⁷³^{, Is}^ra^e^l^a^{nd i}^t^s^A^r^a^b^ne^ig^hbors^f^oug^h^t^the^J^une¹⁹⁶⁷^W^a^{r, the}^eⁿ^s^u^ing^W^a^{r o}^f^A^ttrition
⁽¹⁹^69),^a^nd^the^Oc^to^be^{r 1}⁹⁷³^W^a^{r. Isra}^e^l^a^l^{so w}^a^{s e}ⁿ^g^a^g^e^{d in low}^le^v^e^{l g}^u^e^rrilla^w^a^r^f^a^r^e^w^{ith the}^P^a^le^stiniaⁿ
^Lⁱ^be^r^a^{tion O}^r^g^a^niz^a^tion^a^nd^ot^he^r^g^r^oups^,^w^h^ic^{h ha}^d^ba^s^e^s^{in J}^o^r^d^aⁿ^aⁿ^d^la^te^rⁱⁿ^L^e^ba^non.^T^h^e¹⁹⁷⁴^em^e^r^ge^ncy^aⁱ^{d f}^o^r
^Isra^e^l^{, f}^o^llowⁱ^ng^the¹⁹^{73 w}^a^{r, in}^c^l^ude^{d t}^h^e^fⁱ^{rst U.S. m}^ilita^ry^g^r^aⁿ^{t a}ⁱ^{d t}^o^Isra^e^l^.

the United States provided Israel with military loans of $545 million, up from $30 million in
1970. Also in 1971, Congress first designated a specific amount of aid for Israel in legislation (an
“earmark”). Economic assistance changed from project aid, such as support for agricultural ³²
development work, to a Commodity Import Program (CIP) for the purchase of U.S. goods. In
effect, the United States stepped in to fill the role that France had relinquished after French
President Charles de Gaulle refused to supply Israel with military hardware to protest its
preemptive launch of the Six Day War in June 1967. Israel became the largest recipient of U.S.
foreign assistance in 1974. From 1971 to the present, U.S. aid to Israel has averaged over $2.6
billion per year, two-thirds of which has been military assistance.
The 1979 Camp David Peace Treaty between Israel and Egypt ushered in the current era of U.S.
financial support for peace between Israel and her Arab neighbors. To facilitate a complete
cessation of hostilities and Israel’s return of the Sinai Peninsula, the United States provided a total
of $7.5 billion to both parties in 1979. The “Special International Security Assistance Act of

1979” (P.L. 96-35) provided military and economic grants to Israel and Egypt at a ratio of 3:2, ³³

respectively.
U.S. assistance also has been used to help ease financial pressures on the Israeli treasury during ³⁴
recession. In 1985, the United States significantly increased U.S. assistance to Israel, with
Congress passing a special economic assistance package of $1.5 billion in order to help the Israeli ³⁵
economy cope with soaring inflation and economic stagnation. As part of the assistance
agreement, the United States and Israel formed the U.S.-Israel Joint Economic Development ³⁶
Group (JEDG) in order to support Israeli economic reforms. In addition, all U.S. military aid to ³⁷
Israel was converted into grants in 1985. U.S. economic aid had been converted to a cash grant
transfer in 1981.
During times of domestic unrest in Israel and regional instability, U.S. aid to Israel has increased.
In 1991, Congress provided Israel $650 million in emergency grants to pay for damage and other

³²^T^h^{e Co}^mm^o^dⁱ^t^y^I^m^p^o^r^t^P^r^o^g^{ram f}^o^{r Israel}^en^d^e^dⁱⁿ¹⁹⁷⁹^and^w^a^{s rep}^l^aced^wⁱ^t^h^dⁱ^rect^,^l^a^rgel^y^uⁿ^c^onditi^ona^l^c^a^s^h
^t^r^an^sf^ers.
³³^T^h^is^r^a^{tio is}^not^f^oun^{d in}^the^te^x^t^of^the¹⁹⁷⁸^aⁿ^d¹⁹⁷⁹^C^a^m^p^D^a^vⁱ^{d a}^g^r^e^em^eⁿ^ts^{. U}^.^{S. of}^fⁱ^cⁱ^a^l^s^ha^v^e^{not f}^o^r^m^a^l^l^y
^reco^gⁿ^ized^th^{e ratio}^{. Eg}^y^p^{t b}^e^liev^e^{s th}^{at, sin}^{ce it}^to^o^k^p^o^{litical risk}^{s in}^m^a^kⁱⁿ^g^p^eace^w^ith^{Israel, th}^{e Un}^ited^S^t^ates
^s^houl^d^be^e^v^eⁿ^-^h^a^nde^{d in}^its^a^s^sⁱ^s^t^aⁿ^c^e^polic^y^{to the}^r^e^gⁱ^oⁿ^{. T}^h^e^Eg^y^p^tia^{n g}^o^v^e^rⁿ^m^e^{nt c}^l^aⁱ^m^s^tha^t^a^{3:2 r}^a^tio^be^tw^e^eⁿ
^Israel^an^d^E^g^y^p^t^{was est}^a^b^lishe^{d duri}ⁿ^g^the^ne^g^o^tia^tio^ns.
³⁴^B^e^gⁱ^nningⁱⁿ^t^h^e^mⁱ^d-¹⁹⁷^0s^{, I}^s^r^a^e^l^c^ouldⁿ^o^l^ong^e^r^m^e^e^t^its^ba^la^nc^e^of^pay^m^eⁿ^ts^a^{nd g}^o^v^e^rⁿ^m^e^{nt de}^fⁱ^c^its^w^ith
^im^por^te^{d c}^a^p^ita^{l (}^g^if^ts^f^r^o^m^ov^e^r^se^a^s^J^e^w^s^,^W^e^s^t^G^e^r^m^aⁿ^r^e^pa^r^a^tions^{, U}^.^S.^aⁱ^d)^a^nd^be^g^a^{n to r}^e^ly^m^o^r^e^on^b^o^r^r^o^w^e^d
^c^a^p^ita^{l. G}^r^ow^ing^de^{bt s}^e^r^v^ic^ing^cos^t^s^,^m^ountiⁿ^g^g^o^v^e^rⁿ^m^e^{nt s}^o^cⁱ^a^l^s^e^r^v^ic^e^s^ex^pe^nditur^e^s^,^pe^r^e^nnia^l^hig^h^de^f^e^ns^e
^s^p^e^ndi^ng^{, a}ⁿ^d^a^s^t^a^g^na^{nt d}^o^m^e^s^tⁱ^c^e^c^onom^y^c^o^m^b^ine^d^w^{ith w}^o^r^l^d^w^ide^inf^l^a^{tion a}ⁿ^d^de^c^liniⁿ^g^f^o^r^e^ig^{n m}^a^r^k^e^t^s^f^o^r
^I^s^r^a^e^{li g}^oods^p^u^s^h^e^d^the^I^s^r^a^e^{li e}^c^onom^y^{into a}^ne^a^r^c^r^is^is^s^itua^tⁱ^on^{in t}^h^e^mⁱ^d-¹⁹⁸^0s^.
³⁵^Se^e^T^itle^{I, Cha}^p^te^r^V^of^P.L^.^99-^88,^Ec^on^om^ic^Supp^ort^Fu^{nd a}^ssis^t^aⁿ^c^e^f^o^{r Isra}^e^l^{, Egy}^p^{t, a}^{nd Jor}^d^aⁿ^{. I}ⁿ¹⁹⁸⁵^{, t}^h^e
^Uⁿ^ite^{d S}^t^a^t^e^s^a^{nd I}^s^r^a^e^l^a^l^s^o^c^o^nc^lude^d^a^Fr^e^e^T^r^a^d^e^A^g^r^e^em^eⁿ^{t, w}^h^ic^h^dr^a^m^a^tica^l^l^y^boos^te^{d I}^s^r^a^e^li^e^x^por^ts^to^the
^Unⁱ^t^e^d^S^t^at^es.
³⁶^T^h^{e JE}^DG^meet^{s o}ⁿ^an^an^nu^al^b^a^si^{s t}^o^di^scu^{ss f}ⁱⁿ^aⁿ^cⁱ^a^l^sect^o^r^an^d^l^a^b^o^r^m^a^rket^re^f^o^r^m^s,^t^r^ad^{e l}ⁱ^b^eralⁱ^zatⁱ^oⁿ^,^an^d
^p^rⁱ^v^atⁱ^zatⁱ^oⁿ^.^T^h^{e JE}^DG^al^so^m^oⁿⁱ^t^o^rs^t^h^e^dⁱ^sb^u^r^sem^eⁿ^t^o^f^U.^S^.^l^o^an^gu^aran^t^{ees t}^o^Israel^.
³⁷^T^h^e¹⁹⁷^{4 e}^m^e^r^ge^nc^y^aⁱ^{d f}^o^{r Isra}^e^l^{, f}^o^llowⁱ^ng^the¹⁹⁷³^w^a^{r, inc}^l^ud^e^d^the^fⁱ^{rst m}^ilita^r^y^g^r^aⁿ^{t a}ⁱ^d.

costs from Operation Desert Storm. In addition, Israel was given Patriot missiles to defend
against Iraqi Scud missile attacks. After the 1991 collapse of the Soviet Union and the ensuing
increase in migration of Russian and other Eastern bloc Jews to Israel, Congress approved $10
billion in loan guarantees for Israel to help it absorb immigrants and provide them with adequate
social services. Finally, in the aftermath of the 2003 Iraq invasion, Congress passed the FY2003
Emergency Supplemental Appropriations Act (P.L. 108-11), which included $9 billion in loan
guarantees over three years for Israel’s economic recovery and $1 billion in military grants.
During the 1990s, the United States provided aid to support the Israeli-Palestinian peace process.
In late 1998, Israel requested $1.2 billion in additional U.S. aid to fund the movement of troops
and military installations out of areas of the West Bank as called for in the October 23, 1998 Wye ³⁸
Agreement. The Clinton Administration requested $1.2 billion in military aid for Israel to
implement the Wye Agreement despite the fact that its implementation had stalled. President
Clinton vetoed H.R. 2606, the FY2000 foreign operations appropriations bill, in part because it
did not include the Wye funding. On November 29, 1999, the President signed the consolidated
appropriations bill, H.R. 3194 (P.L. 106-113), which included in Division B passage of H.R.
3422, the Foreign Operations Appropriations bill. Title VI of H.R. 3422 included the $1.2 billion
Wye funding for Israel.

³⁸^T^h^e^f^u^{ll te}^x^t^of^the¹⁹^{98 W}^y^e^Rⁱ^v^e^r^Mem^o^r^a^ndum^{, a}^U^.^S.-^b^r^o^k^e^r^e^{d I}^s^r^a^e^li-^P^a^le^s^tinia^{n s}^e^c^u^rⁱ^ty^ag^r^eem^eⁿ^{t, is}
^a^v^a^ila^ble^online^a^t^htt^p^://w^w^w^.^m^fa^.g^ov^.il/N^R/e^x^e^r^e^s^/^EE54A^289-^8F^0A^-4CD^C-^93C9-^71BD⁶³¹¹⁰^9A^B.htm^.

Table A-1 shows cumulative U.S. aid to Israel for FY1949 through FY1996, and U.S. aid to
Israel for each fiscal year since. Detail for the years 1949-1996 is shown in Table A-2.
Table A-1. Recent U.S. Aid to Israel
^{(millions of}^doll^ars)
^Mili^tary^Eco^nomic^Immig.^All
^{Year Total}^Grant^Grant^{Grant ASHA}^other
¹⁹⁴^9-1⁹⁹⁶^68,0^{30.9 29,0}^14.9^23,1^22.4^868.⁹^121.^{4 14,9}^03.3
¹⁹⁹^{7 3,13}^2.1^1,80^0.0^1,20^0.0^80.0^2.1^50.0
¹⁹⁹^{8 3,08}^0.0^1,80^0.0^1,20^0.0^80.0^?^?
¹⁹⁹^{9 3,01}^0.0^1,86^0.0^1,08^0.0^70.0^?^?
²⁰⁰^{0 4,13}^1.85^3,12^0.0^949.¹^60.0^2.75^?
²⁰⁰^{1 2,87}^6.05^1,97^5.6^838.²^60.0^2.25^?
²⁰⁰^{2 2,85}^0.65^2,04^0.0^720.⁰^60.0^2.65^28.0
²⁰⁰^{3 3,74}^5.15^3,08^6.4^596.¹^59.6^3.05^?
²⁰⁰^{4 2,68}^7.25^2,14^7.3^477.²^49.7^3.15^9.9
²⁰⁰^{5 2,61}^2.15^2,20^2.2^357.⁰^50.0^2.95^?
²⁰⁰^{6 2,53}^4.5^2,25^7.0^237.⁰^40.0^?^0.5
²⁰⁰^{7 2,50}^0.2^2,34^0.0^120.⁰^40.0^?^0.2
^Total^101,¹⁹^{0.8 53,6}⁴³^.4^30,8⁹⁷^.0^1,51^8.²^140.^{3 14,9}⁹¹^.9
^Notes:^{ESF was earmarked for $}⁹⁶⁰^{million for FY2000}^but^{was r}^{educed to meet a 0.3}^8%^{recision. FY200}⁰
^{military grants include $}^{1.2 billio}^{n for th}^{e Wye agree}^{ment a}^{nd $}^1.92^billi^{on in ann}^{ual military aid. F}ⁱ^{nal amounts}
^{for FY200}^{3 are}^reduced^by^0.65%^{mandated recision, and final amounts}^{for FY20}^{04 a}^{re redu}^{ced by}^0.59%.
^{The $6}⁰⁰^milli^{on in housing loan}^guarantee^{s, $5.5}^{billion in mil}^{itary debt reduction loan g}^uarante^{es, $9.2}^billi^{on in}
^{Soviet Jew resettlement loan gua}^{rantees, and}^$9^{billion in economic recovery loan guara}^{ntees a}^{re n}^{ot included in}
^{the tables}^becau^{se the}^{United States governme}^{nt did not trans}^{fer f}^{unds to Is}^{rael. The United States underwrote}
^{loans to Israel from commercial institutions.}

Table A-2. U.S. Assistance to Israel, FY1949-FY1996
^{(millions of}^doll^ars)
^Ex-
^Im.^JewishRefug.^Amer.
^Mili^tary^Mili^tary^Eco^nomic^Eco^nomic^FFP^FFP^Bank^Resett^le^{Schools &}^Other^Coop.Devel.^Other
^{Year Total}^Loan^Grant^Loan^Grant^Loan^Grant^Loan^Grant^Hosp.Grant^Loan^Grant^Grant
¹⁹⁴⁹^100.^{0 - -}^-^-^-^-^100.⁰^-^-^-^-^-
¹⁹⁵⁰^{- - -}^-^-^-^-^-^-^-^-^-^-
¹⁹⁵¹^{35.1 - -}^-^0.1^-^-^35.0^-^-^-^-^-
¹⁹⁵²^{86.4 - -}^-^63.7^-^22.7^-^-^-^-^-^-
¹⁹⁵³^{73.6 - -}^-^73.6^-^a^-^-^-^-^-^-
¹⁹⁵⁴^{74.7 - -}^-^54.0^-^20.7^-^-^-^-^-^-
¹⁹⁵⁵^{52.7 - -}^20.0^21.5^10.8^0.4^-^-^-^-^-^-
ⁱ^{ki/CRS-RL33222}¹⁹⁵⁶^{50.8 - -}^10.0^14.0^25.2^1.6^-^-^-^-^-^-
^g/w
^s^.or¹⁹⁵⁷^{40.9 - -}^10.0^16.8^11.8^2.3^-^-^-^-^-^-
^le^ak¹⁹⁵⁸^{85.4 - -}^15.0^9.0^34.9^2.3^24.2^-^-^-^-^-
^://wiki¹⁹⁵^{9 53.3}^0.4^-^10.0^9.2^29.0^1.7^3.0^-^-^-^-^-
^h^ttp¹⁹⁶^{0 56.2}^0.5^-^15.0^8.9^26.8^4.5^0.5^-^-^-^-^-
¹⁹⁶^{1 77.9}^a^-^16.0^8.5^13.8^9.8^29.8^-^-^-^-^-
¹⁹⁶^{2 93.4}^13.2^-^45.0^0.4^18.5^6.8^9.5^-^-^-^-^-
¹⁹⁶^{3 87.9}^13.3^-^45.0^-^12.4^6.0^11.2^-^-^-^-^-
¹⁹⁶⁴^{37.0 - -}^20.0^-^12.2^4.8^-^-^-^-^-^-
¹⁹⁶^{5 65.1}^12.9^-^20.0^-^23.9^4.9^3.4^-^-^-^-^-
¹⁹⁶^{6 126.}⁸^90.0^-^10.0^-^25.9^0.9^-^-^-^-^-^-
¹⁹⁶^{7 23.7}^7.0^-^5.5^-^-^0.6^9.6^-^1.0^-^-^-
¹⁹⁶^{8 106.}⁵^25.0^-^-^-^51.3^0.5^23.7^-^6.0^-^-^-
¹⁹⁶^{9 160.}³^85.0^-^-^-^36.1^0.6^38.6^-^-^-^-^-
¹⁹⁷^{0 93.6}^30.0^-^-^-^40.7^0.4^10.0^-^12.5^-^-^-

^Ex-
^Im.^JewishRefug.^Amer.
^Mili^tary^Mili^tary^Eco^nomic^Eco^nomic^FFP^FFP^Bank^Resett^le^{Schools &}^Other^Coop.Devel.^Other
^{Year Total}^Loan^Grant^Loan^Grant^Loan^Grant^Loan^Grant^Hosp.Grant^Loan^Grant^Grant
¹⁹⁷^{1 634.}³^545.⁰^-^-^-^55.5^0.3^31.0^-^2.5^-^-^-
¹⁹⁷^{2 430.}⁹^300.⁰^-^-^50.0^53.8^0.4^21.1^-^5.6^-^-^-
¹⁹⁷^{3 492.}⁸^307.⁵^-^-^50.0^59.4^0.4^21.1^50.0^4.4^-^-^-
¹⁹⁷^{4 2,62}^1.3^982.⁷^1,50^0.0^-^50.0^-^1.5^47.3^36.5^3.3^-^-^-
¹⁹⁷⁵^778.^{0 200.}^{0 100.}⁰^-^344.⁵^8.6^-^62.4^40.0^2.5^-^-^20.0
¹⁹⁷⁶^2,33^{7.7 750.}^{0 750.}⁰^225.⁰^475.⁰^14.4^a^104.⁷^15.0^3.6^-^-^-
^TQ^292.^{5 100.}^{0 100.}⁰^25.0^50.0^3.6^-^12.6^-^1.3^-^-^-
¹⁹⁷⁷^1,76^{2.5 500.}^{0 500.}⁰^245.⁰^490.⁰^7.0^-^0.9^15.0^4.6^-^-^-
¹⁹⁷⁸^1,82^{2.6 500.}^{0 500.}⁰^260.⁰^525.⁰^6.8^-^5.4^20.0^5.4^-^-^-
ⁱ^{ki/CRS-RL33222}¹⁹⁷⁹^4,88^{8.0 2,70}^{0.0 1,30}^0.0^260.⁰^525.⁰^5.1^-^68.7^25.0^4.2^-^-^-
^g/w¹⁹⁸⁰^2,12^{1.0 500.}^{0 500.}⁰^260.⁰^525.⁰^1.0^-^305.⁹^25.0^4.1^-^-^-
^s^.or¹⁹⁸¹^2,41^{3.4 900.}^{0 500.}⁰^-^764.⁰^-^-^217.⁴^25.0^2.0^-^5.0^-
^le^ak
¹⁹⁸²^2,25^{0.5 850.}^{0 550.}⁰^-^806.⁰^-^-^6.5^12.5^3.0^17.5^5.0^-
^://wiki¹⁹⁸³^2,50^{5.6 950.}^{0 750.}⁰^-^785.⁰^-^-^-^12.5^3.1^-^5.0^-
^h^ttp¹⁹⁸⁴^2,63^{1.6 850.}^{0 850.}⁰^-^910.⁰^-^-^-^12.5^4.1^-^5.0^-
¹⁹⁸^{5 3,37}^6.7^-^1,40^0.0^-^1,95^0.0^-^-^15.0^4.7^-^7.0^-
¹⁹⁸^{6 3,66}^3.5^-^1,72^2.6^-^1,89^8.4^-^-^15.0^12.0^5.5^-^10.0^-
¹⁹⁸^{7 3,04}^0.2^-^1,80^0.0^-^1,20^0.0^-^-^-^25.0^5.2^-^10.0^-
¹⁹⁸^{8 3,04}^3.4^-^1,80^0.0^-^1,20^0.0^-^-^-^25.0^4.9^-^13.5^-
¹⁹⁸^{9 3,04}^5.6^-^1,80^0.0^-^1,20^0.0^-^-^-^28.0^6.9^-^10.7^-
¹⁹⁹^{0 3,03}^4.9^-^1,79^2.3^-^1,19^4.8^-^-^-^29.9^3.5^-^14.4^-
¹⁹⁹^{1 3,71}^2.3^-^1,80^0.0^-^1,85^0.0^-^-^-^45.0^2.6^-^14.7^-
¹⁹⁹^{2 3,10}^0.0^-^1,80^0.0^-^1,20^0.0^-^-^-^80.0^3.5^-^16.5^-
¹⁹⁹^{3 3,10}^3.4^-^1,80^0.0^-^1,20^0.0^-^-^-^80.0^2.5^-^20.9^-
¹⁹⁹^{4 3,09}^7.2^-^1,80^0.0^-^1,20^0.0^-^-^-^80.0^2.7^-^14.5^-

^Ex-
^Im.^JewishRefug.^Amer.
^Mili^tary^Mili^tary^Eco^nomic^Eco^nomic^FFP^FFP^Bank^Resett^le^{Schools &}^Other^Coop.Devel.^Other
^{Year Total}^Loan^Grant^Loan^Grant^Loan^Grant^Loan^Grant^Hosp.Grant^Loan^Grant^Grant
¹⁹⁹⁵^3,10^{2.4 -}^1,80^0.0^-^1,20^0.0^-^-^-^80.0^2.9^-^19.5^-
¹⁹⁹^{6 3,14}^4.0^-^1,80^0.0^-^1,20^0.0^-^-^-^80.0^3.3^-^14.0^50.0
^{Total 68,0}³⁰^{.9 11,2}¹²^{.5 29,0}¹⁴^.9^1,51^6.⁵^23,1²²^{.4 588.}⁵^94.1¹²¹^8.5^868.⁹^121.⁴^17.5^185.⁷^70.0
^Notes:
^{a = less tha}^{n $}^50,0⁰⁰
^{- = None}
^{NA = Not Available}
^{TQ = Transition Qua}^{rter, whe}^{n t}^{he U.S. fiscal year changed f}^{rom J}^{une to Septe}^mber.
^{FFP = Food for Peace}
ⁱ^{ki/CRS-RL33222}^{Cooperative Development Gra}^nt^{: Three program}^{s are in t}^{he coop}^{erative development category: Mi}^{ddle East Regional Co}^{operation (ME}^{RC) intended for}^{projects tha}^t^{foster economic growth a}^{nd economic cooperation betwee}^{n Isra}^{el and its neighbors; Cooperative}^{Development Program (CDP); and th}^{e Cooperative Developme}ⁿ^t
^g/w^{Research (CDR), both of which}^f^{und Is}^{rael’s foreign aid program. I}^{srael received about one}^{half of t}^{he $}^{94 million MERC, and al}^{l of the $}^{53 million CDP and $39}^milli^on
^s^.or^CDR.
^le^ak^“Other^{Loan” is a CCC loan. “Other}^Grants”^{are $}²⁰^{million in 1975}^{for a seawate}^{r desalting plant}^{and $5}^{0 million in 199}^{6 for a}^{nti-terrorism.}
^://wiki^{Definition of Aid}^{: Under the cate}^{gory of foreign aid, some people include other}^fu^{nds tran}^sfer^{red to Israel, such}^{as th}^{e $}¹⁸⁰^m^{illion for researc}^{h and developme}^{nt of}^the
^h^ttp^{Arrow missile, or the $7.9}^billion^{in loan guarant}^{ees for}^{housing o}^r^{settling Soviet Jews in Israel. N}^{one of these}^fu^{nds is inc}^{luded in t}^{his table.}

^Je^re^m^y^M^.^S^h^a^r^p
^Specialis^{t i}ⁿ^{Middle Eas}^t^ern^Aff^a^irs
^j^s^h^a^rp@^c^rs^.l^oc.g^ov^{, 7-}⁸⁶⁸⁷