U.S. Military Industrial Complex Gets Huge Subsidy in the Form of Record-Breaking Aid Package for Israel

Israel is fully capable of funding its own defense, but now they'll have billions more to spend on U.S. weaponry.


I got you $38 billion, babe
Pete Souza/White House/Wikimedia Commons

The U.S. State Department signed a "memo of understanding" with Israel yesterday that will provide the Jewish state with $38 billion in U.S. military aid over the next 10 years. This new agreement ups the annual U.S. aid to Israel from the current figure of $3.1 billion to $3.8 billion.

But the real winner of this expanding taxpayer subsidy is the U.S. defense industry, which will eventually receive every cent of that aid package, according to the terms of this new deal. Previously, Israel had enjoyed a privileged status among U.S. military aid recipients, as the only country permitted to spend up 26 percent of its U.S. aid on its own defense industry—including research and development. This new deal begins the phasing out of that part of the deal.

The Washington Post notes, "Israel was granted that exception in the 1980s so it could build up its nascent defense infrastructure. With Israel's defense industry now thriving, the Obama administration wanted U.S. aid directed to American companies providing goods and services."

This agreement coming together in the waning days of the Obama administration comes as a bit of a surprise considering the long-fraught relationship between the president and Israeli prime minister Benjamin Netanyahu, but Netanyahu reportedly wanted a deal done prior to the U.S. presidential election. To ensure it all came together in a timely fashion, "Bibi" lowered his asking original asking price of "$4 billion to $5 billion a year," according to the Post.

Some supporters of Israel don't want think it should be soliciting or accepting the U.S.'s "strings attached" aid, but considering that the past three U.S. administrations have been forceful in their opposition to the creation of illegal Israel settlements—which have nonetheless doubled in population since 1993—the U.S. has never withheld aid, and support for Israel in Congress is all but unanimous.

But the Israeli economy is booming and has essentially doubled over the past decade, and despite the American Israel Public Affairs Committee (AIPAC) description of the billions in U.S. aid as "the most tangible manifestation of American support," there have even been calls from Israeli leaders to cut the cord of military aid, allowing the two allied countries to maintain their special relationship without such a grand subsidy.

In 2014, I wrote an article for Reason titled "Death, Taxes, and American Aid to Israel" which included this passage:

In 1996, Israel's prime minister addressed a joint session of Congress, offering thanks for "all that we have received from the United States (and) this chamber." He added, "But I believe there can be no greater tribute to America's long-standing economic aid to Israel than (to) achieve economic independence." He proposed "gradually reducing the level" of U.S. aid to Israel and ultimately ending it altogether.

That Israeli Prime Minster's name was Benjamin Netanyahu.

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  1. To ensure it all came together in a timely fashion, “Bibi” lowered his asking original asking price of “$4 billion to $5 billion a year,” according to the Post.

    Now that’s how you Jew someone down.

    1. I should not have laughed at that, you asshole.

      1. NO YOU SHOULDN’T HAVE. It was a test to see who here is that type. You failed. Or passed. Whichever is worse.

        1. 16 years of Hebrew school, ruined in one moment. 🙁

          1. So you’re officially a self-loathing Jew now? Is there an official membership card for that?

            1. He can just change his name to J00venile Bluster

  2. Say, whatever happened to the calls for a balanced budget amendment?

    1. They’re figuring out how broad the “exception” language should be to allow us to proceed like we always do.

  3. Jeeze you’d think that they would know that you *never* take store credit, always choose your refund in cash.

  4. “…the Obama administration wanted U.S. aid directed to American companies providing goods and services.”

    Hey, the defense industry is suffering with the sequester and all. Glad to see we’re looking out for them! Boeing’s CEO was recently seen being forced to buy second-rate caviar (it probably was because the market didn’t have top-rate, but still).

  5. Small fry.

  6. but think of the jobs it will create (or save). MANUFACTURING jobs. in AMERICA!
    cut to video of McCain singing his rendition of Barbara Ann

  7. And their online trolls brag about the second house and car they own thanks to Uncle Sam. And say, “Nothing you can do about it.” Meanwhile Boobi incites violence against all of Arabia with his white supremacist rhetoric while his government cracks down on criticism out of Palestine by labeling it ‘hate speech’.

    1. That may the dumbest thing I’ve read all week, but admittedly, it’s only Thursday.

    2. Boobi incites violence against all of Arabia with his white supremacist rhetoric

      Not to feed the Tulpa, but I was told white supremacists on alt-right are also Jew-haters. Is Netanyahu a Secret Aryan?!

      1. I was wondering the same. White supremacists = J00s, now?

        1. I swear, the way we are going we’re gonna need to restore the Institute of Racial Studies or whatever that Nazi thing was called. If race is making a triumphant comeback as a defining feature of public policy, then fucking give me clear definitions so I know where to slot people.

          1. give me clear definitions so I know where to slot people.

            And by that you mean who goes in which ovens, right?

            1. Well yeah, if I’m headed for an oven I’d like to know ahead of time!

              At least Germans were kind enough to weigh it at 100 lives for each German killed…

          2. …then fucking give me clear definitions so I know where to slot people.

            *high fives*

            Atta boy, Panny Z! Gettin’ freaky with the untermensch!

            *makes air-humping motion*

            1. That…may have not been the best phrasing, I’ll concede.

      2. They’re amateurs compared to the “I don’t hate Jews, it’s those fucking Zionists!” on the Left. The difference being that the latter are welcomed by Team Blue. whereas the former are an embarrassment to Team Red.

        1. Pretty much. Alt-Righters are out and out anti-Semites, but everyone knows they are, and everyone, including the mainstream right, disavows them. Meanwhile, a large segment of the left is into BDS and say “I don’t have Jews, just Zionists/Israelis!” and people believe them when they say it. And they’re fully a part of the mainstream left.

        2. To be fair, I’m certain that there actually are people who don’t hate Jews but dislike the idea of Zionism. I’m also certain that those people comprise a very small percentage of the BDS crowd.

          1. I’ve never really understood what it even means to be an “anti-Zionist.”

            Zionism is the belief that a Jewish state should exist. But, it already does. So to be against that has to mean you want to destroy that state? I could’ve sworn the outright destruction of a country was a no-no.

            1. Pretty much.

              The “nice” anti-Zionists just want Israel to stop being a “Jewish State” and become…I dunno? France? Jordan Junior? New Seleucid Empire?

              What most want is one state called Palestine, as per PLO official policy since founding. They will of course be shocked when PLO runs the other part of their official policy of No Jews in Palestine.

          2. To be fair, many of the people (on the left) who claim to oppose Zionism also support the idea of creating safe spaces for marginalized communities. At the far end, they would even support the idea of setting up a country for an oppressed community, and would probably maintain that support even if it came at the expense of removing land from a privileged native population (they would call such appropriation “social justice”).

            Since they support the concept of Zionism as a general rule, their opposition to the Israeli case must just be Judenhassen.

      3. Yes – they are as confused as you are.

        1. i looked at that but it was a giant mush of frothing nonsense.

          What was the point, if you could summarize?

          1. So Hihn writes there?

      4. Is Netanyahu a Secret Aryan?!

        One can’t forget ‘Aryan’ is ultimately root of modern ‘Iran.’ This makes Bibi not just a self-loathing J00, but a self-loathing carpet dealer as well. That’s self-loathing squared.

    3. “Pay attention to me!” explained the troll.

      1. Keep it up mister and this will be your last $40B aid package.

    4. I recognize the individual words as English words, but I’m pretty sure a cat walking across the keyboard would have been type something more coherent than this word salad.

      1. *…been able to type…*

  8. It’s the guns fault of course.…..east-side/

  9. And we’re not taking cash because…? Oh yeah, we wanted to prevent them from fucking up Iran. But it’s not a bribe, no more so than the cash payments to Iran were ransom, right?

  10. You know who else was interested in how the Jews defended themselves?

    1. Tomas de Torquemada?

    2. Vespasian (and Titus)?

    3. Or Sasson?

    4. Aldo Raine?

    5. Nebuchadnezzar?

    1. Interesting. JPFO has a list of why Jews typically don’t support firearm ownership:

      The adamantly anti-gun-rights Jews are bowing to:
      1. A desire for utopian moral purity
      2. A disproportional incidence of hoplophobia
      3. A quest for power through victimization of peers
      4. A utopian delusion that if guns would just “go away,”
      crime would end and the world would be a peaceful safe place
      5. Self hatred and a wish to be helpless, acting out guilt-based
      behavioral problems that develop in childhood
      6. The Ostrich Syndrome
      7. Garden-variety hypocrisy
      8. Adulterated religion — Jews In Name Only (JINOs)
      9. Feel-good sophistry
      10. Abject fear that yields irrational behavior

      1. People who live in cities tend to oppose guns. Jews in America tend to live in cities.

        I’d be interested to see what the actual support/oppose breakdown is though.

  11. I suppose the idea here is that Obama knew that if the left were paying attention, they’d go, “Wait a second!!?” and strenuously object, but instead they’re so caught up in the TEAM-sports of the election that they’ll basically ignore any transgressions by the Lame-Duck, in the name of Unity.

    1. They’re too busy clicking and watching to see if Hillary is still alive. Drudge saved them by declaring that yes, it still lives. She’ll look like a Gaddafi horror wax museum dummy soon, but with blue Ozzy glasses and a gayly colored pantsuit. Man, that is so disturbing, I need a safe space.

  12. Well, it’s no big deal. Our very own beloved AmSoc was here just yesterday boasting about how Obama has saved the economy by making big cuts to the military. But I guess now that Obama is gone… oh wait…

  13. Morgan Freeman: “Which month is white history month?”
    Mike Wallace: “Well, I’m Jewish.”
    (60 Minutes, 2005)
    ((((((((((((((((((((((((((((((Judaism is a faith.))))))))))))))))))))))))))))))))))

    1. Judaism is a faith

      eeeeehhhhhhh…. not so sure about that. Most jews i know sort of shrug and say, “its a faith and/or a race” and don’t sweat trying to get more specific about the “and/or” parts. Science* suggests they’re right

      (if you go, “uh… right about what??” = *exactly*!)

      1. Isn’t race now considered a social construct as well, or are we still a few years away from going down that rabbit hole (despite the best efforts of Rachel Dolezal and Shaun King)?

        1. I sort of hope so, just so people whose ancestors lived in Europe for generations can all identify as Light Pink and thus shed responsibility for the sins of the white devil.

    2. Trying joining it and tell me what happens.

      1. He’ll have to ask 3 times.

        1. I’ll be bot-ack-bar-ing all mitvahs before you know it! Yom Shalom Kippur, half of us are likely not poor!

          Pew: 46% of Jewish people in the United States make more than 100k in a year, the highest religious demographic (2009)


          1. Only 46%???? That’s stunning.

            1. Fucking failures. Relatively speaking.

          2. Of course, if they tend to live in higher cost-of-living areas, then it doesn’t necessarily mean as much.

    3. WashingtonPost: “Jews in America struggled for decades to be considered white. Now we must give up that whiteness to fight racism.”
      (((((((((((((((((((((((((((((((((How many Muslims are trying to be considered White?))))))))))))))))))))))))))))))))))))))))))

      1. Now we must give up that whiteness to fight racism.

        what the hell does that even mean

        1. I don’t rightly know, which I why I put it here. Honestly, I think the Jewish people, understandably, have been told by their leaders and their history professors that as a group, they are history’s punching bag; thus, an inherent need to see their faith as a something more than mere belief in the evils of foreskin.

      2. It means that once upon a time, not being white meant being treated as a second class citizen, so Jews wanted the upgrade. Now being white means being legally disadvantaged and blamed vehemently for being part of a people that allegedly exploits and oppresses the world, no matter how poor and politically powerless you are personally. It would be sort of redundant at this point.

  14. Israel is the one getting the “Huge Subsidy”. While yes the military industrial complex does get money but they also have to supply the equipment. Its Israel which is getting the stuff for free.

    1. Isn’t much of the total amount of aid actually from “discounts” on the purchase price of the goods, with the difference made up at U.S. taxpayer expense? I.e., Israel gets the equipment on the cheap, while the manufacturer still gets paid full price.

      1. Yes, but full price for the manufacturer still means they only net the profit, while Israel gets the full value of the goods for no cost.

  15. This is like the Marine Corps budget but bigger.

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