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Calls for more aid to Israel came quickly in the wake of a terrorist attack by Hamas on the country this weekend, and President Biden has said military assistance is on its way. The USS Gerald R. Ford, the Navy’s newest and most advanced aircraft carrier, has already been dispatched to the region, and more aid in the form of equipment, resources and munitions is expected to arrive in coming days.
The U.S. commitment to aiding Israel has long-standing roots. The United States has given Israel more than $260 billion in combined military and economic aid since World War II, plus about $10 billion more in contributions for missile defense systems like the Iron Dome, a U.S. News analysis finds. That’s the most granted to any country throughout that time frame, and around $100 billion more than Egypt, the second-highest recipient historically.
For nearly three decades – from fiscal years 1974 to 2002 – Israel was the top recipient of U.S. aid, the longest-standing duration for a top aid recipient dating back to 1946, according to figures from ForeignAssistance.gov. While 2003 to 2020 saw the most aid going to either Iraq or Afghanistan, Israel nevertheless remained a top three aid recipient throughout that time.
In 2021, U.S. obligations to Israel amounted to $3.31 billion, a figure that saw Israel returning to the top spot among aid recipients that year. But in 2022, the U.S. committed $12 billion to Ukraine in its defense against Russia’s invasion, far exceeding Israel’s $3.18 billion that year. While some figures are still considered “partial,” total U.S. aid globally for 2022 currently adds up to more than $60 billion, a level not seen since 1951.
On Monday, Army Secretary Christine Wormuth told reporters additional funds from Congress would be necessary to aid both Israel and Ukraine simultaneously. Meanwhile, the House of Representatives is essentially paralyzed until it selects a new Speaker of the House following Kevin McCarthy’s ouster.
Almost all U.S. aid to Israel recently has been military aid rather than economic aid, in the form of Foreign Military Financing grants – U.S. grants and loans to Israel for acquiring U.S. military equipment and services. Israel is typically allowed first access in the region to U.S. defense technology to stay ahead of neighboring militaries, a concept summarized as a “qualitative military edge” by the Congressional Research Service in a report on foreign aid to the country.
The CRS estimates that U.S. military aid reflects 16% of Israel’s total defense budget. The non-partisan data center, USAFacts, points out those totals don’t include funds for Israel’s missile defense systems, which to date have amounted to about $10 billion more in U.S. contributions, according to the CRS report.
The Israel Defense Forces credits one such missile defense system, the Iron Dome, for intercepting 90% of missiles fired into its territory in 2021, but Saturday’s attack saw hundreds of missiles rapidly fired, which may have overwhelmed the system. The Iron Dome, which focuses on short-range aerial attacks, was originally developed by Israel’s Rafael Advanced Defense Systems but since 2014 has been co-produced with the United States through a partnership with Raytheon, according to the CRS.
The two companies also developed David’s Sling together, a system to counter “long-range rockets and slower-flying cruise missiles,” and in 2020 teamed up in a joint venture, Raytheon Rafael Area Protection Systems. Israel Aerospace Industries and Boeing form another U.S.-Israel missile defense partnership, together developing the Arrow systems which cover short-range (Arrow), long-range (Arrow II) and high-altitude (Arrow III) aerial attacks.
Israel’s military expenditures are significant when compared to its gross domestic product. In 2022, Israel spent 4.5% of its GDP on its military, according to the World Bank, almost double the global average, and tying other nations at No. 8 for highest military spending when compared as a ratio to GDP. Israel saw that rate peak at 30.5% in 1975, but it has slowly been descending since. For comparison, Ukraine saw the highest share in 2022, with more than one-third (33.5%) of its GDP associated with military expenditures in its ongoing defense against Russia.
Due to its compulsory service at the age of 18 – which requires conscripted men to serve for at least 32 months and conscripted women to serve at least 24 months – Israel has a larger portion of its “economically active population” in the armed forces compared to other countries. At 4.4% in 2020, Israel was well above the global average of 0.8%, tying other nations at No. 6 for the highest share of citizens in the military.
Having to prepare for regular attacks may lead Israelis to take terrorism more seriously compared to others. Earlier this year, as part of the survey that drives the Best Countries rankings, respondents were asked to what extent they agreed or disagreed with the statement “Terrorism is the most important global issue to solve.” Among Israeli survey takers, 44% strongly agreed with the statement, and 83.5% agreed to any extent. Meanwhile, the global response saw 30% agreeing strongly and 79.5% agreeing to any extent.
* Dollar amounts sourced from ForeignAssistance.gov are adjusted for inflation, and expressed in constant 2021 dollars as reported by USAID. Missile defense funding as reported by the Congressional Research Service is expressed in current dollars.
