Order Code RL33222
U.S. Foreign Aid to Israel
Updated April 25, 2007
Jeremy M. Sharp
Middle East Policy Analyst
Foreign Affairs, Defense, and Trade Division

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U.S. Foreign Aid to Israel
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 figures, 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 FY2006 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 40 richest nations in terms of
per capita income (between Greece and Cyprus 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 have 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 staggered installments. The United States
gives all Economic Support Funds (ESF) directly to the government of Israel as a
cash transfer grant rather than allocating funds for specific development projects.
The Administration has requested $2.4 billion in military assistance and no
economic aid for Israel in fiscal year 2008. With continued conflict on Israel’s
borders, the 110th Congress may address issues concerning U.S. foreign assistance
to Israel. According to various Israeli media sources, the Israeli government is
deliberating over whether to seek an overall increase in U.S. aid to Israel from the
Administration and Congress.

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Contents
U.S.-Israeli Relations and the Role of Foreign Aid . . . . . . . . . . . . . . . . . . . . . . . . 1
Historical Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1948-1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1970-Present . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1979 Israeli-Egyptian Peace Treaty . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Emergency Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Using Aid to Support the Peace Process . . . . . . . . . . . . . . . . . . . . . . . . 4
Aid Restrictions and Possible Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Cluster Munitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Israeli Arms Sales to China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Israeli Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
U.S. Economic Aid to Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Economic Support Funds (ESF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Cash Grant & Early Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Israel’s Use of ESF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Phasing Out Economic Aid to Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Migration & Refugee Assistance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Loan Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Loan Guarantees for Soviet Immigration . . . . . . . . . . . . . . . . . . . . . . . . 9
Loan Guarantees for Economic Recovery . . . . . . . . . . . . . . . . . . . . . . 10
American Schools and Hospitals Abroad Program (ASHA) . . . . . . . . . . . . 11
U.S. Military Assistance to Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Foreign Military Financing (FMF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Early Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
FMF for in-Country Purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Recent U.S. Military Sales to Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Appropriations for U.S.-Israeli Cooperative Programs . . . . . . . . . . . . . . . . . . . . 14
Defense Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Arrow Anti-Missile System and Other Defense Systems . . . . . . . . . . 14
U.S.-Israeli Scientific & Business Cooperation . . . . . . . . . . . . . . . . . . . . . . 15
Appendix: Recent Aid to Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
List of Tables
Table 1. Housing Loan Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 2. Loan Guarantees for Soviet Immigration . . . . . . . . . . . . . . . . . . . . . . . . 9
Table 3. FY2003 Loan Guarantees for Economic Recovery . . . . . . . . . . . . . . . 11
Table 4. ASHA Program Grants to Israeli Institutions, FY2000-FY2005 . . . . . 12

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Table 5. U.S. Contributions to U.S.-Israel Arrow Weapons System
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table 6. Recent U.S. Aid to Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Table 7. U.S. Assistance to Israel, FY1949-FY1996 . . . . . . . . . . . . . . . . . . . . . 18

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U.S. Foreign Aid to Israel
U.S.-Israeli Relations and the Role of Foreign Aid
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), other Middle East peace issues, and Israeli arms
sales to China, successive Administrations and many lawmakers have long
considered Israel to be a reliable partner in the region, and Israel’s aid packages 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 have agreed to gradually phase
out grant economic aid to Israel.
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, have argued 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

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Israeli arms purchases. In the past, the United States has reduced its loan guarantees
to Israel in opposition to continued settlement building, but it has not acted to cut
Israel’s military or economic grant aid.
Historical Background
1948-1970
U.S. government assistance to Israel began in 1949 with a $100 million Export-
Import Bank Loan.1 For the next two decades, U.S. aid to Israel was modest and was
far less than in later years.2 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 and technology.3 In 1962, Israel
purchased its first advanced weapons system from the United States (Hawk
antiaircraft missiles).4 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 military edge over its neighbors.5
1970-Present
Large-scale U.S. assistance for Israel increased considerably after a series of
Arab-Israeli wars created a sense among many Americans that Israel was continually
under siege.6 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, the United
1 In 1948, President Harry Truman, who sympathized with the plight of Israel in its early
days, placed an arms embargo on Israel and her Arab neighbors in order to keep the United
States neutral in the ongoing Arab-Israeli conflict. The Tripartite Declaration of 1950
reaffirmed U.S., British, and French opposition to the development of Arab-Israeli arms
races.
2 From 1949 through 1965, U.S. aid to Israel averaged about $63 million per year, over 95%
of which was economic development assistance and food aid. A modest military loan
program began in 1959.
3 France supplied Israel with military equipment mainly to counter Egypt. In the 1950s and
early 1960s, Egypt antagonized France by providing arms and training for Algeria’s war for
independence against France.
4 “America’s Staunchest Mideast Ally,” Christian Science Monitor, August 21, 2003.
5 Section 303 of P.L. 90-554, Foreign Assistance Act of 1968, expresses the sense of
Congress to see the United States negotiate the sale of supersonic aircraft to Israel.
6 Between 1967 and 1973, Israel and its Arab neighbors fought the June 1967 War, the
ensuing War of Attrition (1969), and the October 1973 War. Israel also was engaged in low
level guerrilla warfare with the Palestinian Liberation Organization and other groups, which
had bases in Jordan and later in Lebanon. The 1974 emergency aid for Israel, following the
1973 war, included the first U.S. military grant aid to Israel.

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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 development work, to a Commodity Import Program (CIP)
for the purchase of U.S. goods.7 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.
1979 Israeli-Egyptian Peace Treaty. 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, respectively.8
Emergency Aid. U.S. assistance also has been used to help ease financial
pressures on the Israeli treasury during recession.9 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 economy cope
with soaring inflation and economic stagnation.10 As part of the assistance
agreement, the United States and Israel formed the U.S.-Israel Joint Economic
Development Group (JEDG) in order to support Israeli economic reforms.11 In
7 The Commodity Import Program for Israel ended in 1979 and was replaced with direct,
largely unconditional cash transfers.
8 This ratio is not found in the text of the 1978 and 1979 Camp David agreements. U.S.
officials have not formally recognized the ratio. Egypt believes that, since it took political
risks in making peace with Israel, the United States should be even-handed in its assistance
policy to the region. The Egyptian government claims that a 3:2 ratio between Israel and
Egypt was established during the negotiations.
9 Beginning in the mid-1970s, Israel could no longer meet its balance of payments and
government deficits with imported capital (gifts from overseas Jews, West German
reparations, U.S. aid) and began to rely more on borrowed capital. Growing debt servicing
costs, mounting government social services expenditures, perennial high defense spending,
and a stagnant domestic economy combined with worldwide inflation and declining foreign
markets for Israeli goods pushed the Israeli economy into a near crisis situation in the mid-
1980s.
10 See Title I, Chapter V of P.L. 99-88, Economic Support Fund assistance for Israel, Egypt,
and Jordan. In 1985, the United States and Israel also concluded a Free Trade Agreement,
which dramatically boosted Israeli exports to the United States.
11 The JEDG meets on an annual basis to discuss financial sector and labor market reforms,
trade liberalization, and privatization. The JEDG also monitors the disbursement of U.S.
loan guarantees to Israel.

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addition, all U.S. military aid to Israel was converted into grants in 1985.12 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 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.
Using Aid to Support the Peace Process. 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 Agreement.13 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.
Aid Restrictions and Possible Violations
Cluster Munitions. 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
12 The 1974 emergency aid for Israel, following the 1973 war, included the first military
grant aid.
13 The full text of the 1998 Wye River Memorandum, a U.S.-brokered Israeli-Palestinian
security agreement, is available online at [http://www.mfa.gov.il/NR/exeres/EE54A289-
8F0A-4CDC-93C9-71BD631109AB.htm].

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CRS-5
civilian targets during its military operations in Lebanon and the siege of Beirut.14
As a result, the Reagan Administration prohibited U.S. export of cluster bombs to
Israel for six years.15
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 in the conflict.16 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. The Department of State’s Directorate of Defense Trade Controls
reportedly is conducting 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 are classified, I cannot get into the
details.”17 The State Department has reportedly asked Israel for additional
information on reports that Israeli troops violated orders that restricted how U.S.-
manufactured cluster bombs could be used during the summer 2006 war.18 The U.S.
Department of State’s Office of Weapons Removal and Abatement announced plans
to expand an ongoing landmine and unexploded ordnance (UXO) humanitarian
clearance program in Lebanon in the aftermath of the 2006 Israel-Hezbollah conflict.
Israeli Arms Sales to China. Over the last two decades, the United States
and Israel have disagreed over Israeli sales of sensitive U.S. technologies to China.19
14 See, CRS Report RL30982, U.S. Defense Articles and Services Supplied to Foreign
Recipients: Restrictions on Their Use, by Richard Grimmett.
15 The Reagan Administration also suspended the delivery of F-16 aircraft to Israel after it
bombed the Iraqi nuclear reactor at Osirak in 1981.
16 David S. Cloud, “Inquiry Opened Into Israeli Use Of U.S. Bombs,” New York Times
August 25, 2006. An August 26, 2006, presentation by United Nations Mine Action
Coordination Center (UNMAS) South Lebanon office catalogued the following numbers of
U.S.-manufactured cluster weapon sub-munitions during surveys in southern Lebanon
(source weapons in parentheses): 715 M-42’s (105-millimeter artillery shells), 820 M-77’s
(M-26 rockets), and 5 BLU-63’s (CBU-26 cluster bombs). The UNMAS teams also reported
631 M-85 Israeli-produced sub-munitions had been found. See, UNMAS South Lebanon,
“Cluster Bomb Situation - South Lebanon July/August 2006,” August 26, 2006.
17 “U.S. Says Israel May Have Violated Agreement on Cluster Bomb Use,” Reuters, January
29, 2007.
18 “Israel May have Violated Arms Pact, U.S. Says,” New York Times, January 28, 2007.
19 U.S.-Israeli disputes over arms sales also have been generated by U.S. sales of “sensitive”
equipment to friendly Arab states, though Israeli analysts note that Israel, because of its
dependence on U.S. military aid, has little leverage in opposing such sales. Israel opposed
(continued...)

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CRS-6
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 Airborne Early Warning System.20 On June 20, 2000, the House Foreign
Operations Subcommittee voted nine to six to defeat Callahan’s proposal.21 In 2005,
the United States suspended Israel from participating in the development of the Joint
Strike Fighter (JSF) because of Israeli plans to upgrade Chinese Harpy Killer drone
aircraft. Israel canceled the sale and is now part of the JSF program.22
Israeli Settlements. Continued Israeli settlement building in the West Bank
and Gaza Strip prior to its departure from Gaza in 2005 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 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.
U.S. Economic Aid to Israel
Economic Support Funds (ESF)
Cash Grant & Early Transfer. The United States gives all Economic
Support Funds (ESF) directly to the government of Israel as a grant cash transfer
rather than allocating funds for specific development projects or as a Commodity
Import program. Prior to 1981, Israel had received economic aid in the form of both
grants and loans. By law, ESF funds to Israel must be transferred in one lump sum
within the first 30 days of the new fiscal year or passage of the appropriation act,
whichever is later. Before 1982, Israel had received its annual ESF in quarterly
installments.
Israel’s Use of ESF. According to the U.S. State Department, economic aid
to Israel is not conditioned on economic policy reform, though U.S. assistance may
be used to purchase goods and services from the United States; to service debt owed
19 (...continued)
a recent U.S. proposal to sell “smart” weapons (guided munitions) to Saudi Arabia.
20 Eric Pianin, “Israel-China Radar Deal Opposed,” Washington Post, April 7, 2000.
21 According to the House Committee, “the Committee is very disturbed by reports that
Israel is preparing to provide China with an airborne radar system that could threaten both
the forces of democratic Taiwan and the United States in the region surrounding the Taiwan
Strait. The Committee intends to revisit this issue as the appropriations process moves
forward.” H.Rept. 106-720, accompanying H.R. 4811 (P.L. 106-429), the FY2001 Foreign
Operations Appropriations Act.
22 In 2006, Israel also froze a $100-million contract with Venezuela to upgrade its U.S.-
manufactured F-16 fighter jets reportedly due to U.S. pressure.

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CRS-7
to, or guaranteed by, the U.S. government (USG); to pay to the USG any subsidies
or other costs associated with loans guaranteed by the USG; to service Foreign
Military Sales debt; and to defray the costs of other activities to support Israel’s
economic needs. Although there is no legally mandated accounting for Israel’s use
of economic aid, the Israeli government reportedly keeps U.S. officials informed of
its ESF spending.
Phasing Out Economic Aid to Israel. On July 10, 1996, former Israeli
Prime Minister Binyamin Netanyahu told a joint session of the U.S. Congress: “In
the next four years, we will begin the long-term process of gradually reducing the
level of your generous economic assistance to Israel.” Former Israeli Finance
Minister Yaacov Neeman met with some House Appropriations Committee members
in January 1998 to negotiate a $600 million reduction in Israel’s $3 billion annual aid
package by decreasing the $1.2 billion economic aid to zero over a 10-year period
while increasing Israel’s $1.8 billion military aid up to $2.4 billion in the same
period. Beginning in FY1999, Congress has reduced the amount of ESF going to
Israel by $120 million per year and increased the amount of Foreign Military
Financing (FMF) by $60 million per year. The phased reduction in U.S. economic
aid to Israel is scheduled to be completed in 2008.
Migration & Refugee Assistance
Beginning in 1973, Israel
has received grants from the
Migration and Refugee Assistance
State Department’s Migration
Funding Levels
and Refugee Assistance fund
(MRA)23 to assist in the
FY2000:
$60 million
resettlement of humanitarian
FY2001:
$60 million
migrants to Israel. Funds are
FY2003:
$60 million
paid to the United Israel
FY2004:
$59.6 million
Appeal, a private philanthropic
FY2005:
$49.7 million
organization in the United
FY2006:
$50 million
States, which in turn transfers
the funds to the Jewish
FY2007:
$40 million
Agency.24 Between 1973 and
Source: U.S. State Department.
1991, the United States gave
about $460 million for
Note: The level of funding reflects a decline in
resettling Jewish refugees in
need due to the overall decreasing numbers of
migrants to Israel.
Israel. Annual amounts have
varied from a low of $12
million to a high of $80 million,
based on the number of Jews leaving the former Soviet Union and other areas for
Israel. The Refugee and Migration funds for Israel are earmarked by Congress; the
Administration usually does not request specific amounts of Refugee and Migration
assistance for Israel.
23 The Refugee and Migration Account (MRA) is authorized as part of the State Department
funding but is appropriated through the Foreign Operations Appropriations bill.
24 The Jewish Agency’s website is available at [http://www.jafi.org.il/].

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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.
In the 109th Congress, H.R. 5522, the House-passed FY2007 Foreign Operations
Appropriations bill, included the MRA paragraph that states that “Not less than
$40,000,000 of the funds made available under this heading shall be made available
for refugees from the former Soviet Union and Eastern Europe and other refugees
resettling in Israel.” 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.
Loan Guarantees
Overview. 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 Israeli-Palestinian violence. 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.
Table 1. Housing Loan Guarantees
Year
Amount
1972
$50 million
1974
$25 million
1975
$25 million
1976
$25 million
1977
$25 million
1979
$25 million
1980
$25 million
1990
$400 million
Total
$600 million

---

CRS-9
Loan Guarantees for Soviet Immigration. In late 1990, the press reported
that Israel would request $10 billion in loan guarantees from the United States.
Under the proposal, Israel would borrow $10 billion from U.S. commercial
establishments, and the United States government would guarantee the loans against
default. Israeli officials said the funds were needed to finance housing, jobs, and
infrastructure for an anticipated 1 million Soviet Jewish immigrants that were
expected between 1991 and 1995. During April 1991 negotiations over Israel’s
request for emergency funds for recovery from Iraqi attacks during Operation Desert
Storm, Israel agreed to postpone its guaranteed loan request until September 1991.
In September, then President George H.W. Bush asked Congress to delay
consideration of the Israeli request until January 1992 because the President feared
that the loan request would jeopardize Secretary of State Baker’s negotiations for a
peace conference. Reluctantly, most Members of Congress agreed.
When Congress returned in January 1992, Secretary Baker said the
Administration would support the Israeli request only if Israel agreed to freeze all
settlement activity in the occupied territories. In a series of negotiations among the
Administration, Congress, and Israel, several compromises were offered: reducing
the U.S. loan guarantees by an amount equal to the Israeli expenditures on
settlements in the occupied territories, reducing the annual amount of the loan
guarantees, or allowing Israel to complete housing projects underway in the
territories but to ban new projects. None of the proposals were acceptable to all the
parties. With the stalemate, it appeared that Israel’s loan guarantee request was to
be postponed until consideration of the FY1993 foreign aid legislation later that year.
Following the June 1992 Israeli elections, which Yitzhaq Rabin and his Labor
party won, relations between the United States and Israel improved because the Bush
Administration found the new Israeli leaders more accommodating toward peace
talks with Arab states. President Bush announced in August that he would propose
approving the loan guarantees. Congress attached the loan guarantee authorization
to the Foreign Operations Appropriation bill that passed on October 5, 1992 (Title
VI, P.L. 102-391, signed into law on October 6, 1992). The United States approved
the first $2 billion tranche in December 1992, and Israel issued the first $1 billion in
bonds in March 1993.
Table 2. Loan Guarantees for Soviet Immigration
($ in millions)
“Offset”
Reduction
Reinstated
Authorized,
for
for
Amount
Title VI
Settlement
Security
Net
Available
Year
P.L. 102-391
Activity
Interests
Reduction
for Israel
1993
$2,000.0
0
0
0
$2,000.0
1994
$2,000.0
$437.0
0
$437.0
$1,563.0
1995
$2,000.0
$311.8
$95.0
$216.8
$1,783.2
1996
$2,000.0
$303.0
$243.0
$60.0
$1,940.0
1997
$2,000.0
$307.0
$247.0
$60.0
$1,940.0
Totals
$10,000.0
$1,358.8
$585.0
$773.8
$9,226.2

---

CRS-10
On September 30, 1993, the President notified Congress, that the $2 billion in
loan guarantees for FY1994 would be reduced by $437 million, the amount Israel
spent in FY1993 on Jewish settlements in geographic areas occupied after the Six
Day War in June 1967.25 On September 30, 1994, the President notified Congress
that the $2 billion in loan guarantees for FY1995 would be reduced by $216.8
million, an amount equal to the amount Israel spent on Jewish settlements in the
occupied territories in FY1994. The President notified Congress in September 1995
that the amount for FY1996 would be reduced by $60 million, and notified Congress
in September 1996 that the amount for FY1997 also would be reduced by $60
million. The $10 billion ($2 billion each year) authorized for Israel for
FY1993-FY1997, has been reduced by $774 million because of settlement activity.
Of the $9.226 billion available to Israel from FY1993 to FY1997, Israel drew loans
worth about $6.6 billion.
Loan Guarantees for Economic Recovery. 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.
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. H.R. 6060, the 2006
Department of State Authorities Act, extends the authority to provide loan guarantees
through fiscal year 2010.
25 Loan reductions were in accordance with Section 226(d) of the Foreign Assistance Act
as amended by Sec. 601 of the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1993 (P.L. 102-391; 106 Stat. 1699).

---

CRS-11
Table 3. FY2003 Loan Guarantees for Economic Recovery
($ in millions)
Authorized
Reduction for
Amount Borrowed
Year
P.L. 108-11
Settlement Activity
by Israel
FY2003
3,000
289.5
1,600
FY2004
3,000
—
1,750
FY2005
3,000/1,000*
—
750
FY2006
1,000
—
FY2007
1,000
—
Total
9,000
289.5
4,100
Year
Extended
Reduction for
Amount Borrowed
Authorization
Settlement Activity
by Israel
H.R. 6060**
FY2006
400
—
—
FY2007
400
—
—
FY2008
400
—
—
FY2009
400
—
—
FY2010
400
—
—
Total
2,000 (+ 2,600
—
—
unspent funds)
Source: U.S. State Department.
*Under the original authorizing legislation, Israel was permitted to borrow $3 billion in FY2005. P.L.
108-447 extended the overall time frame for the loan guarantees, and the United States allotted $1
billion increments for Israel to draw on in fiscal years 2005-2007.
**From FY2003-FY2005, $4.6 billion in loan guarantees remained unspent by Israel. Of that amount,
$2.6 billion had been carried over from previous years and had already met certain financial
benchmarks established by a Joint U.S.-Israeli Economic Group overseeing the loan guarantees.
Because Israel has already met such criteria, it can draw on the $2.6 billion at any time. The remaining
$2 billion in authorized loan guarantees has been apportioned out by the U.S. government in $400
million increments from FY2006-FY2010.
American Schools and Hospitals Abroad Program (ASHA)26
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
26 According to USAID, recipients of ASHA grants on behalf of overseas institutions must
be private U.S. organizations, headquartered in the United States, and tax-exempt. The U.S.
organization must also serve as the founder for and/or sponsor of the overseas institution.
Schools must be for secondary or higher education and hospital centers must conduct
medical education and research outside the United States. Grants are made to U.S. sponsors
for the exclusive benefit of institutions abroad. See [http://www.usaid.gov/our_work/cross-
cutting_programs/asha/].

---

CRS-12
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 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 4. ASHA Program Grants to Israeli Institutions,
FY2000-FY2005
Fiscal year
Amount
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 million
Source: USAID.
U.S. Military Assistance to Israel
Foreign Military Financing (FMF)
Overview. Congress has taken measures to strengthen Israel’s security and
maintain its “qualitative military edge” (QME) over neighboring militaries. Annual
Foreign Military Financing (FMF) grants to Israel represent about 23-25% of the
overall Israeli defense budget, and FMF levels are expected to increase incrementally
by $60 million a year to a level of $2.4 billion by 2008.
Early Transfer. 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, stood at $1.2
billion as of December 2005.27 Israel cannot use accrued interest for defense
procurement inside Israel.
FMF for in-Country Purchase. Most analysts consider Israel’s ability to use
a significant portion of its annual military aid for procurement spending in Israel to
be the most valuable aspect of its assistance package; no other recipient of U.S.
military assistance has been granted this benefit. The proceeds to Israeli defense
27 U.S. Department of Treasury Foreign Credit Reporting System, 2003.

---

CRS-13
firms from purchases with U.S. funds have allowed the Israeli defense industry to
achieve necessary economies of scale and become highly sophisticated. Successive
Administrations and many lawmakers believe that a strong domestic Israeli defense
industry is crucial to maintaining Israel’s technological edge over its neighbors. Israel
is among the world’s leading arms exporters.
Israel was first granted FMF for use in Israel in 1977, when it asked for and
received permission to use $107 million in FY1977 FMF funds to develop the
Merkava tank (prototype completed in 1975 and added to Israeli arsenal in 1979).
Several years later, Israel asked for a similar waiver to develop the Lavi
ground-attack aircraft, and Congress responded with legislation allowing Israel to
spend $250 million of FMF in Israel to develop the Lavi. It was estimated that the
United States provided between $1.3 and $1.8 billion in Lavi development costs
before the United States and Israel agreed to terminate the project in 1988.28 In order
to defray the cancellation costs of the Lavi program, the United States agreed to raise
the FMF earmark for procurement in Israel to $400 million.
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 ($585
million in FY2007). As U.S. military aid to Israel has increased, the amount set aside
for defense purchases in Israel also has increased.
Recent U.S. Military Sales to Israel. 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 April 20, 2007, DSCA notified Congress of a possible Foreign
Military Sale to Israel of 3,500 MK-84 “general purpose” bombs,
spares and repair parts, plus U.S. government technical assistance,
in a deal worth up to $65 million if all options are exercised. General
Dynamics Corporation would be the prime contractor.
! On July 14, 2006, DSCA notified Congress of a possible Foreign
Military Sale to Israel of JP-8 aviation jet fuel. The total value, if all
options were exercised, could be as high as $210 million. This
request was made at the outset of the 2006 Israel-Hezbollah war.
The Congressional Notification stated that the planned sale of jet
fuel would help Israeli aircraft “keep peace and security in the
region.” Israel had asked for faster delivery of JP-8 jet fuel and
guided bomb units (GBU28s).
! On April 28, 2005, DSCA notified Congress of a possible Foreign
Military Sale to Israel of 100 GBU-28s (guided bomb units) as well
28 For background on the cancellation of the Lavi fighter, see Raviv, Dan & Yossi Melman,
Friends in Deed: Inside the U.S.-Israeli Alliance, New York: Hyperion, 1994, pp. 263-268.

---

CRS-14
as associated equipment and services. The total value, if all options
were exercised, could be as high as $30 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 with necessary supplies at either
reduced rates or at no charge.29
Appropriations for U.S.-Israeli
Cooperative Programs
Congress periodically provides funds from non-foreign aid accounts for joint
U.S.-Israeli research and development (R&D) projects in the defense, agriculture,
science, and hi-tech industries. Israel and the United States benefit from such projects
and share technology from co-developed weapons systems.
Defense Budget
Arrow Anti-Missile System and Other Defense Systems. Congress
and successive Administrations have shown strong support for joint U.S.-Israeli
missile defense projects. 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 Defense Appropriations Act for FY2007, P.L. 109-289,
appropriates $137,894,000 for the Arrow program. Of this amount, $53,000,000 is
for producing missile components in the United States and missile components and
missiles in Israel to meet Israel’s defense requirements, and $20,400,000 is for a joint
feasibility study of the Short Range Ballistic Missile Defense (SRBMD) initiative,
a missile interceptor (dubbed “Stunner”) designed by the Raytheon Co. to thwart
missiles and rockets from 40 to 200 kilometers that is not expected to be operational
before 2011. The United States also has provided $53 million for the Boost Phase
Intercept program and $139 million for the Tactical High Energy Laser program
(THEL) to complement the Arrow.30
29 To access DSCA’s Excess Defense Articles database, see [http://www.dsca.mil/programs/
eda/search.asp].
30 Recent media reports suggest that the United States and Israel have shelved plans to
further develop the THEL or “Nautilus” laser system. Reportedly, some military experts
claimed that the system, developed jointly by the Israeli government missile-defense unit
Mafat and U.S. arms firm Northrop Grumman since April 1996, was too cumbersome and
expensive to warrant continued development. See, “U.S. and Israel Shelved Laser as a
Defense,” New York Times, July 30, 2006.

---

CRS-15
Table 5. U.S. Contributions to U.S.-Israel
Arrow Weapons System Development
(figures in millions of U.S. dollars)
Fiscal Year
U.S. Contribution
FY1990
52.000
FY1991
42.000
FY1992
54.400
FY1993
57.760
FY1994
56.400
FY1995
47.400
FY1996
59.352
FY1997
35.000
FY1998
94.874
FY1999
46.924
FY2000
79.985
FY2001
92.025
FY2002
126.395
FY2003
124.594
FY2004
135.644
FY2005
152.048
FY2006 60.250
FY2007 Estimate
79.494
FY2008 Estimate
77.539
FY2009 Estimate
77.723
FY2010 Estimate
79.340
U.S.-Israeli Scientific & Business Cooperation
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:

---

CRS-16
! The BIRD Foundation (Israel-U.S. Binational Research &
Development Foundation).31 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).32
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 agricultural research.33
In the 110th Congress, H.R. 1838, the U.S.-Israel Energy Cooperation Act,
proposes providing grants of up to $20 million a year for joint U.S.-Israeli research
and development projects in the fields of renewable energy and alternative energy
sources. In the 109th Congress, similar legislation was passed by the House of
Representatives on July 26, 2006, but was not voted on in the Senate.
31 See [http://www.birdf.com/default.asp]. Congress helped establish BIRD’s endowment
with appropriations of $30 million and $15 million in 1977 and 1985 respectively. These
grants were matched by the Israeli government for a total endowment of $90 million
32 See [http://www.bsf.org.il/Gateway4/]. Congress helped establish BSF’s endowment with
appropriations of $30 million and $20 million in 1972 and 1984 respectively. These grants
were matched by Israel for a total endowment of $100 million. According to the treaty
establishing the Foundation, the Foundation shall use the interest, as well as any funds
derived from its activities, for the operations of the Foundation.
33 See [http://www.bard-isus.com/]. Congress helped establish BARD’s endowment with
appropriations of $40 million and $15 million in 1979 and 1985 respectively. These grants
were matched by the State of Israel for a total endowment of $110 million. In recent years,
Congress has provided funds for BARD in annual Agriculture Appropriations legislation at
approximately $500,000 a year.

---

CRS-17
Appendix: Recent Aid to Israel
Table 6 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 7.
Table 6. Recent U.S. Aid to Israel
(millions of dollars)
Military
Economic
Immig.
All
Year
Total
Grant
Grant
Grant
ASHA
other
1949-1996
68,030.9
29,014.9
23,122.4
868.9
121.4
14,903.3
1997
3,132.1
1,800.0
1,200.0
80.0
2.1
50.0
1998
3,080.0
1,800.0
1,200.0
80.0
?
?
1999
3,010.0
1,860.0
1,080.0
70.0
?
?
2000
4,131.8
3,120.0
949.1
60.0
2.75
?
2001 2,878.3
1,975.6
838.2
60.0
2.25
?
2002 2,850.6
2,040.0
720.0
60.0
2.65
28.0
2003 3,744.1
3,086.4
596.1
59.6
3.05
?
2004
2,690.4
2,147.3
477.2
49.7
3.15
9.9
2005 2,612.1
2,202.2
357.0
50.0
2.95
?
2006
2,534.5
2,257.0
237.0
40.0
?
0.5
Total
98,694.8
51,303.4
30,777.0
1,478.2
140.3
14,991.7
Notes: ESF was earmarked for $960 million for FY2000 but was reduced to meet a 0.38% recision.
FY2000 military grants include $1.2 billion for the Wye agreement and $1.92 billion in annual military
aid. Final amounts for FY2003 are reduced by 0.65% mandated recision, and final amounts for
FY2004 are reduced by 0.59%.
The $600 million in housing loan guarantees, $5.5 billion in military debt reduction loan guarantees,
$9.2 billion in Soviet Jew resettlement loan guarantees, and $9 billion in economic recovery loan
guarantees are not included in the tables because the United States government did not transfer funds
to Israel. The United States underwrote loans to Israel from commercial institutions.

---

CRS-18
Table 7. U.S. Assistance to Israel, FY1949-FY1996
(millions of dollars)
Military
Military
Economic
Economic
FFP
FFP
Year
Total
Loan
Grant
Loan
Grant
Loan
Grant
1949
100.0
-
-
-
-
-
-
1950
-
-
-
-
-
-
-
1951
35.1
-
-
-
0.1
-
-
1952
86.4
-
-
-
63.7
-
22.7
1953
73.6
-
-
-
73.6
-
*
1954
74.7
-
-
-
54.0
-
20.7
1955
52.7
-
-
20.0
21.5
10.8
0.4
1956
50.8
-
-
10.0
14.0
25.2
1.6
1957
40.9
-
-
10.0
16.8
11.8
2.3
1958
85.4
-
-
15.0
9.0
34.9
2.3
1959
53.3
0.4
-
10.0
9.2
29.0
1.7
1960
56.2
0.5
-
15.0
8.9
26.8
4.5
1961
77.9
*
-
16.0
8.5
13.8
9.8
1962
93.4
13.2
-
45.0
0.4
18.5
6.8
1963
87.9
13.3
-
45.0
-
12.4
6.0
1964
37.0
-
-
20.0
-
12.2
4.8
1965
65.1
12.9
-
20.0
-
23.9
4.9
1966
126.8
90.0
-
10.0
-
25.9
0.9
1967
23.7
7.0
-
5.5
-
-
0.6
1968
106.5
25.0
-
-
-
51.3
0.5
1969
160.3
85.0
-
-
-
36.1
0.6
1970
93.6
30.0
-
-
-
40.7
0.4
1971
634.3
545.0
-
-
-
55.5
0.3
1972
430.9
300.0
-
-
50.0
53.8
0.4
1973
492.8
307.5
-
-
50.0
59.4
0.4
1974
2,621.3
982.7
1,500.0
-
50.0
-
1.5
1975
778.0
200.0
100.0
-
344.5
8.6
-
1976
2,337.7
750.0
750.0
225.0
475.0
14.4
*
TQ
292.5
100.0
100.0
25.0
50.0
3.6
-
1977
1,762.5
500.0
500.0
245.0
490.0
7.0
-
1978
1,822.6
500.0
500.0
260.0
525.0
6.8
-
1979
4,888.0
2,700.0
1,300.0
260.0
525.0
5.1
-
1980
2,121.0
500.0
500.0
260.0
525.0
1.0
-
1981
2,413.4
900.0
500.0
-
764.0
-
-
1982
2,250.5
850.0
550.0
-
806.0
-
-
1983
2,505.6
950.0
750.0
-
785.0
-
-
1984
2,631.6
850.0
850.0
-
910.0
-
-
1985
3,376.7
-
1,400.0
-
1,950.0
-
1986
3,663.5
-
1,722.6
-
1,898.4
-
-
1987
3,040.2
-
1,800.0
-
1,200.0
-
-
1988
3,043.4
-
1,800.0
-
1,200.0
-
-
1989
3,045.6
-
1,800.0
-
1,200.0
-
-
1990
3,034.9
-
1,792.3
-
1,194.8
-
-
1991
3,712.3
-
1,800.0
-
1,850.0
-
-
1992
3,100.0
-
1,800.0
-
1,200.0
-
-
1993
3,103.4
-
1,800.0
-
1,200.0
-
-
1994
3,097.2
-
1,800.0
-
1,200.0
-
-
1995
3,102.4
-
1,800.0
-
1,200.0
-
-
1996
3,144.0
-
1,800.0
-
1,200.0
-
-
Total
68,030.9
11,212.5
29,014.9
1,516.5
23,122.4
588.5
94.1

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CRS-19
Ex-Im.
JewishRefug.
Amer.
Bank
Resettle
Schools &
Other
Coop.Deve
Other
Year
Loan
Grant
Hosp.Grant
Loan
l. Grant
Grant
1949
100.0
-
-
-
-
-
1950
-
-
-
-
-
-
1951
35.0
-
-
-
-
-
1952
-
-
-
-
-
-
1953
-
-
-
-
-
-
1954
-
-
-
-
-
-
1955
-
-
-
-
-
-
1956
-
-
-
-
-
-
1957
-
-
-
-
-
-
1958
24.2
-
-
-
-
-
1959
3.0
-
-
-
-
-
1960
0.5
-
-
-
-
-
1961
29.8
-
-
-
-
-
1962
9.5
-
-
-
-
-
1963
11.2
-
-
-
-
-
1964
-
-
-
-
-
-
1965
3.4
-
-
-
-
-
1966
-
-
-
-
-
-
1967
9.6
-
1.0
-
-
-
1968
23.7
-
6.0
-
-
-
1969
38.6
-
-
-
-
-
1970
10.0
-
12.5
-
-
-
1971
31.0
-
2.5
-
-
-
1972
21.1
-
5.6
-
-
-
1973
21.1
50.0
4.4
-
-
-
1974
47.3
36.5
3.3
-
-
-
1975
62.4
40.0
2.5
-
-
20.0
1976
104.7
15.0
3.6
-
-
-
TQ
12.6
-
1.3
-
-
-
1977
0.9
15.0
4.6
-
-
-
1978
5.4
20.0
5.4
-
-
-
1979
68.7
25.0
4.2
-
-
-
1980
305.9
25.0
4.1
-
-
-
1981
217.4
25.0
2.0
-
5.0
-
1982
6.5
12.5
3.0
17.5
5.0
-
1983
-
12.5
3.1
-
5.0
-
1984
-
12.5
4.1
-
5.0
-
1985
-
15.0
4.7
-
7.0
-
1986
15.0
12.0
5.5
-
10.0
-
1987
-
25.0
5.2
-
10.0
-
1988
-
25.0
4.9
-
13.5
-
1989
-
28.0
6.9
-
10.7
-
1990
-
29.9
3.5
-
14.4
-
1991
-
45.0
2.6
-
14.7
-
1992
-
80.0
3.5
-
16.5
-
1993
-
80.0
2.5
-
20.9
-
1994
-
80.0
2.7
-
14.5
-
1995
-
80.0
2.9
-
19.5
-
1996
-
80.0
3.3
-
14.0
50.0
Total
1218.5
868.9
121.4
17.5
185.7
70.0

---

CRS-20
Notes:
* = less than $50,000
- = None
NA = Not Available
TQ = Transition Quarter, when the U.S. fiscal year changed from June to September.
FFP = Food for Peace
Cooperative Development Grant: Three programs are in the cooperative development category: Middle East
Regional Cooperation (MERC) intended for projects that foster economic growth and economic cooperation
between Israel and its neighbors; Cooperative Development Program (CDP); and the Cooperative Development
Research (CDR), both of which fund Israel’s foreign aid program. Israel received about one half of the $94
million MERC, and all of the $53 million CDP and $39 million CDR.
“Other Loan” is a CCC loan. “Other Grants” are $20 million in 1975 for a seawater desalting plant and $50
million in 1996 for anti-terrorism.
Definition of Aid: Under the category of foreign aid, some people include other funds transferred to Israel, such
as the $180 million for research and development of the Arrow missile, or the $7.9 billion in loan guarantees for
housing or settling Soviet Jews in Israel. None of these funds is included in this table.

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