U S Foreign Aid To Israel

Contents: (1) U.S.-Israeli Relations and the Role of Foreign Aid; (2) U.S. Bilateral Military Aid to Israel: A 10-Year Military Aid Agreement; Foreign Military Financing; Ongoing U.S.-Israeli Defense Procurement Negotiations; (3) Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs: Multi-Layered Missile Defense; High Altitude Missile Defense System; (4) Aid Restrictions and Possible Violations: Israeli Arms Sales to China; Israeli Settlements; (5) Other Ongoing Assistance and Cooperative Programs: Migration and Refugee Assistance; Loan Guarantees for Economic Recovery; American Schools and Hospitals Abroad Program; U.S.-Israeli Scientific and Business Cooperation; (6) Historical Background. Illustrations.

United States aid to Israel averages a staggering $21 billion per year. Yet, as this insightful volume explains, that aid has failed to serve both U.S. and Israeli interests. The Politics of Foreign Aid discusses how the appropriation of foreign aid is often controlled by lobbyists and U.S. domestic concerns rather than by Israeli needs. This clear and thorough examination begins with a description of the objectives, major programs, and historical background of U.S. aid to Israel--military aid, economic aid, and private grants and subsidies. The final section analyzes the effect that foregin aid has had on Israel and predicts the role that aid will play in Israel's future. Finally, Rabie provides suggestions about how to change the role of lobbyists in influencing foreign policy.

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 general information on 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 FY2010 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 been supplanted by Iraq. Since 1985, the United States has provided nearly $3 billion in grants annually to Israel. Almost all U.S. bilateral aid to Israel is in the form of military assistance. In the past, Israel also had received significant economic assistance. Strong congressional support for Israel has resulted in Israel's receiving benefits not available to other countries. For example, Israel can use some 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 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 Foreign Military Financing (FMF) to Israel, reaching $3 billion a year by FY2012.

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 analysis of current issues. Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. To date, the United States has provided Israel $134.7 billion (current, or noninflation-adjusted, dollars) in bilateral assistance and missile defense funding. Almost all U.S. bilateral aid to Israel is in the form of military assistance, although in the past Israel also received significant economic assistance. At a signing ceremony at the State Department on September 14, 2016, representatives of the U.S. and Israeli governments signed a new 10-year Memorandum of Understanding (MOU) on military aid covering FY2019 to FY2028. Under the terms of the MOU, the United States pledges to provide $38 billion in military aid ($33 billion in Foreign Military Financing grants plus $5 billion in missile defense appropriations) to Israel. This MOU replaces a previous $30 billion 10-year agreement, which runs through FY2018. Israel is the first international operator of the F-35 Joint Strike Fighter, the Department of Defense's fifth-generation stealth aircraft, considered to be the most technologically advanced fighter jet ever made. To date, Israel has purchased 50 F-35s in three separate contracts. For FY2019, the Trump Administration is requesting $3.3 billion in Foreign Military Financing for Israel and $500 million in missile defense aid to mark the first year of the new MOU. The Administration also is seeking $5.5 million in Migration and Refugee Assistance (MRA) funding for humanitarian migrants to Israel.

Contents: (1) Intro.; (2) Overview and Recent Developments; (3) Types of U.S. Bilateral Aid to the Palestinians: Project Assistance Through USAID; Types of Funding Programs; Vetting Require. and Procedures; Direct Assistance to the Palestinian Authority (PA); U.S. Security Assistance to the PA; (4) U.S. Contributions to UNRWA; (5) The $900 Million U.S. Pledge; Hamas¿s Role in a ¿Unity Gov¿t.; International Pledges and the Gaza Reconstruction Effort; (6) Proposed FY 2010 Appropriations; (7) Factors in Determining Future Aid: Effectiveness of U.S. Assistance in Strengthening the PA in the West Bank; Economic Development and International Donor Assistance; Hamas and a ¿Unity Gov¿t.¿?; Questions Regarding a Two-State Solution. Charts and tables.

Does America’s pro-Israel lobby wield inappropriate control over US foreign policy? This book has created a storm of controversy by bringing out into the open America’s relationship with the Israel lobby: a loose coalition of individuals and organizations that actively work to shape foreign policy in a way that is profoundly damaging both to the United States and Israel itself. Israel is an important, valued American ally, yet Mearsheimer and Walt show that, by encouraging unconditional US financial and diplomatic support for Israel and promoting the use of its power to remake the Middle East, the lobby has jeopardized America’s and Israel’s long-term security and put other countries – including Britain – at risk.

This book explores the political economy of Palestine through critical, interdisciplinary, and decolonial perspectives, underscoring that an approach to economics that does not consider the political—a de-politicized economics—is inadequate to understanding the situation in occupied Palestine. A critical interdisciplinary approach to political economy challenges prevailing neoliberal logics and structures that reproduce racial capitalism, and explores how the political economy of occupied Palestine is shaped by processes of accumulation by exploitation and dispossession from both Israel and global business, as well as from Palestinian elites. A decolonial approach to Palestinian political economy foregrounds struggles against neoliberal and settler colonial policies and institutions, and aids in the de-fragmentation of Palestinian life, land, and political economy that the Oslo Accords perpetuated, but whose histories of de-development over all of Palestine can be traced back for over a century. The chapters in this book offer an in-depth contextualization of the Palestinian political economy, analyze the political economy of integration, fragmentation, and inequality, and explore and problematize multiple sectors and themes of political economy in the absence of sovereignty.

U.S. aid to the Palestinians has fluctuated considerably over the past three years, largely due to Hamas's changing role within the Palestinian Authority (PA). After Hamas led the PA government for over a year, its forcible takeover of the Gaza Strip in June 2007 led to the creation of a non-Hamas government in the West Bank resulting in different models of governance for the two Palestinian territories. Since then, the U.S. has dramatically boosted aid levels to bolster the PA and President Mahmoud Abbas vis- -vis Hamas. In FY2008, Congress appropriated a total of $414.5 million in bilateral assistance to the Palestinians, the largest single year appropriation ever for the Palestinians. Because of congressional concerns that, among other things, U.S. funds might be diverted to Palestinian terrorist groups, much of this assistance is subject to legislative restrictions. For FY2009, an additional $200 million have already been appropriated for the Palestinians (with another $100 million requested by the Bush Administration). Experts advise that PA stability hinges on, now more than ever, improved security, economic development, Israeli cooperation, and the continuation of high levels of foreign assistance. U.S. contributions were made to assist emergency humanitarian efforts in the Gaza Strip during the 2008-2009 Israel-Hamas conflict, and U.S. policymakers have also spoken of possible U.S. participation in international efforts to help with the post-conflict reconstruction of Gaza subject to finding an acceptable approach vis- -vis Hamas. This report will be updated as events warrant.