In the waning days of the Obama administration in 2016, many in Israel applauded the signing of a 10-year, $38 billion security assistance Memorandum of Understanding (MOU), then the largest single pledge of US military aid to Israel. The MOU, which covered fiscal years 2019-2028, followed a $30 billion MOU signed in 2007, which expired at the end of fiscal year 2018.
The 2016 MOU provided $33 billion in Foreign Military Financing (FMF) funds and an unprecedented $5b. commitment to missile defense assistance. Funding was disbursed in equal increments of $3.3b. in FMF and $500 million in missile defense funding each year for ten years.
The funding covered in that MOU expires in fiscal year 2028. On December 10th, the US House of Representatives voted 312-112 to pass the 2026 National Defense Authorization Act. The bill, now headed to the Senate, posits a budget of more than $900b. and includes “critical pro-Israel provisions,” according to AIPAC, the America-Israel Public Affairs Committee, the powerful US-based pro-Israel lobby.
According to AIPAC, the bill favors Israel and includes:
• $500m. In fiscal year 2026, for US-Israel missile defense cooperation.
• Funds for Israeli procurement of Iron Dome, David’s Sling, and Arrow, and for bilateral
research, development, testing, and evaluation.
• $80m. for a joint American and Israeli anti-tunneling program.
• Proposes $35m. for the two nations to work together on areas such as artificial intelligence and cybersecurity.
• Increases authorization on funding to counter drones by $15-70m.
While this appears positive for Israel, there is a solid argument for Israel to say to the United States that, as a strong economy, Israel no longer needs direct financial assistance from the US government.
US aid to Israel generates antisemitic and anti-Israel views
Because of the negative publicity, anti-Israel and antisemitic sentiment that these programs generate in the wider US community beyond the Washington Beltway and the Christian Evangelical community is too high a price to pay for assistance that we can live without.
Many Americans assume that the $3.8b. of annual support was a blank check written to Israel. Even though it is far from how the funds are actually allocated, this misunderstanding fuels anti-Israel feelings.
Those funds are part of a financing program that Israel must use to purchase defense-related products from US manufacturers. Therefore, the creation of $3.8b. a year in US defense exports to Israel actually keeps tens of thousands of defense contractor employees working and getting regular salaries in the US. In effect, the funds are a subsidy to American defense companies, not a gift to Israel.
Since October 7, there have been thousands of demonstrations by anti-Israel forces throughout the US demanding that America stop funding Israel’s purchase of weapons, making specific reference to the $3.8b. annual allocation. Saying no to America would help neutralize that aspect of anti-Israel and antisemitic fervor not only in America, but around the world, where the same issue is constantly being raised.
The proposed 2026 defense budget for the State of Israel is about $35b., making the US allocation just 10% of that total. Given that it is a relatively small part of our defense budget and an even smaller part (1.8%) of our overall budget, it is clear that Israel could live without that assistance.
Another factor is that, as we are “on the American dole,” it is difficult for us to stand up to the US when we determine it is in our interests to do so. Oftentimes, it feels as if we are pretty much being controlled by the US when its president, as a guest in the Knesset, feels comfortable telling the President of Israel what he should do with his pardoning authority. Anything Israel can do to wean itself away from such control could be beneficial to guaranteeing our long-term sovereignty and is worthy of consideration.
In an August 2023 piece about the subject in Jewish Currents, former Israeli diplomat Yoram Ettinger, who was the Israeli Consul General in Texas and in the 1990s worked at Israel’s US embassy in Washington, said that instead of providing Israel aid, the US should create joint investment funds with the goal of developing military technology beneficial to both countries.
Ettinger said this would be politically sustainable because “Americans prefer an ally free of foreign aid.”
Much in the current defense package passed by the US Congress takes that approach, which Israel should applaud while saying “no thank you” to the direct annual subsidy, which has been a part of the relationship for so many (perhaps too many) years.
There is, of course, one other potential benefit from saying no. While Israel has been the largest recipient of US foreign aid for many years, Egypt has been number two in a US effort to be seen as ensuring parity in the region. If Israel did not receive its package in future years, the US might be in a position to cut back on Egypt as well, all in the interests of parity, of course.
Our relationship with the US is critical and mutually beneficial. Yet, sometimes there is a need for a “reset” where the benefits of pulling back may outweigh those of maintaining the status quo. This may be one of those moments. After all, it was French President Emmanuel Macron who said: “The status quo leads to self-destruction.” A word to the wise to be sure.
The writer, an international business development consultant, is a former national president of the Association of Americans and Canadians in Israel, a past chairperson of the board of the Pardes Institute of Jewish Studies, and a Board Member of the Israel-America Chamber of Commerce (AMCHAM).