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[IWS] CRS: U.S. FOREIGN AID TO ISRAEL [11 April 2014]

IWS Documented News Service

_______________________________

Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

________________________________________________________________________

 

Congressional Research Service (CRS)

 

U.S. Foreign Aid to Israel

Jeremy M. Sharp, Specialist in Middle Eastern Affairs

April 11, 2014

http://www.fas.org/sgp/crs/mideast/RL33222.pdf

[full-text, 30 pages]

 

Summary

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. For general

information on Israel, see CRS Report RL33476, Israel: Background and U.S. Relations, by Jim

Zanotti.

 

Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. To date,

the United States has provided Israel $121 billion (current, or non-inflation-adjusted, dollars) in

bilateral assistance. 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. Strong congressional

support for Israel has resulted in Israel receiving benefits not available to any 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, U.S. assistance

earmarked for Israel is generally delivered in the first 30 days of the fiscal year, while most other

recipients normally receive aid in installments, and Israel (as is also the case with Egypt) is

permitted to use cash flow financing for its U.S. arms purchases. In addition to receiving U.S.

State Department-administered foreign assistance, Israel also receives funds from annual defense

appropriations bills for rocket and missile defense programs. Israel pursues some of those

programs jointly with the United States.

 

In 2007, the Bush Administration and the Israeli government agreed to a 10-year, $30 billion

military aid package for the period from FY2009 to FY2018. During his March 2013 visit to

Israel, President Obama pledged that the United States would continue to provide Israel with

multi-year commitments of military aid subject to the approval of Congress.

The FY2014 Consolidated Appropriations Act (P.L. 113-76) provides the President’s full $3.1

billion request in FMF for Israel. In addition, it provides another $504 million in funding for

research, development, and production of Israel’s Iron Dome anti-rocket system ($235 million)

and of the joint U.S.-Israel missile defense systems David’s Sling ($149.7 million), the Arrow

improvement program (or Arrow II, $44.3 million), and Arrow III ($74.7 million).

For FY2015, the Administration is requesting $3.1 billion in FMF to Israel and $10 million in

Migration and Refugee Assistance. The Missile Defense Agency’s FY2015 request for joint U.S.-

Israeli programs is $96.8 million. The Administration also is requesting $175.9 million for Iron

Dome.

 

Contents

Overview .......................................................................................................................................... 1

The United States-Israel Strategic Partnership Act (H.R. 938, S. 462) ........................................... 1

Sequestration and U.S. Aid to Israel ................................................................................................ 2

Qualitative Military Edge (QME) .................................................................................................... 2

U.S. Bilateral Military Aid to Israel ................................................................................................. 4

The 10-Year Military Aid Agreement ........................................................................................ 4

Foreign Military Financing (FMF) and Arms Sales .................................................................. 5

Cash Flow Financing ........................................................................................................... 6

Early Transfer and Interest Bearing Account ...................................................................... 6

FMF for In-Country Purchase ............................................................................................. 6

F-35 Joint Strike Fighter...................................................................................................... 7

Excess Defense Articles ............................................................................................................ 8

Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs ................................... 8

Multi-Tiered Missile and Rocket Defense ................................................................................. 9

Iron Dome ........................................................................................................................... 9

David’s Sling ....................................................................................................................... 9

The Arrow and Arrow II .................................................................................................... 10

High Altitude Missile Defense System (Arrow III) .......................................................... 11

X-Band Radar .................................................................................................................... 11

Emergency U.S. Stockpile in Israel ......................................................................................... 12

Aid Restrictions and Possible Violations ....................................................................................... 13

Israeli Arms Transfers to Third Parties .................................................................................... 14

Other Ongoing Assistance and Cooperative Programs .................................................................. 16

Migration & Refugee Assistance ............................................................................................. 16

Loan Guarantees ...................................................................................................................... 17

Overview ........................................................................................................................... 17

Loan Guarantees for Economic Recovery......................................................................... 17

American Schools and Hospitals Abroad Program (ASHA) ................................................... 19

U.S.-Israeli Scientific & Business Cooperation ...................................................................... 20

U.S.-Israeli Energy Cooperation ....................................................................................... 21

 

Tables

Table 1. U.S. Contributions to the Arrow Program (Arrow, Arrow II, and Arrow III) .................. 10

Table 2. Defense Budget Appropriations for U.S.-Israeli Missile Defense: FY2006-FY2014 Request .......................................... 12

Table 3. Migration and Refugee Assistance Funding Levels ......................................................... 16

Table 4. U.S. Loan Guarantees to Israel: FY2003-FY2013 ........................................................... 18

Table 5. ASHA Program Grants from Israel Account, FY2000-FY2012 ...................................... 19

Table B-1. Recent U.S. Bilateral Aid to Israel ............................................................................... 26

Table B-2. U.S. Assistance to Israel, FY1949-FY1996 ................................................................. 27

Table B-3. U.S. Assistance to Israel, FY1949-FY1996 ................................................................. 29

 

Appendixes

Appendix A. Historical Background .............................................................................................. 23

Appendix B. Bilateral Aid to Israel ............................................................................................... 26

 

Contacts

Author Contact Information........................................................................................................... 30

 

 

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

 




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