Armed to the teeth: how America has funded Israel’s wars

A long history of US military aid to Tel Aviv has created the regional military superpower we see today, but calls to condition or even withhold that support over Gaza may not be falling on deaf ears

Israeli soldiers with their Merkava tanks near Gaza. A range of regional powers all willing and able to intervene increases the risk of conflict in the Middle East.
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Israeli soldiers with their Merkava tanks near Gaza. A range of regional powers all willing and able to intervene increases the risk of conflict in the Middle East.

Armed to the teeth: how America has funded Israel’s wars

When Israeli Prime Minister Benjamin Netanyahu lauded the US for its continued support for Israel’s ongoing offensive in Gaza, he no doubt had in mind the vital military backing that Washington has provided since October 2023.

Addressing the joint session of Congress for the fourth time, he praised both the current and former US presidents for backing the Jewish state.

Joe Biden was thanked for his “heartfelt support for Israel”, while Trump was praised for his “leadership” during his first term.

Amid angry protests in Washington over Israeli actions in Gaza, Netanyahu devoted a key passage of his speech to the importance of an Israeli victory for the US.

“We’re not only protecting ourselves, we’re protecting you... Our enemies are your enemy, our fight is your fight, and our victory will be your victory.”

The Israeli leader then called on Washington to fast-track military aid to Israel: “Give us the tools and we’ll get the job done faster.”

Hold hands tightly

Netanyahu’s comments follow recent claims that the Biden administration had reduced arms shipments to Israel in recent months over concerns about the killing of civilians.

Omar Al-Qattaa / AFP
A view of the destruction by the Israeli military of Beit Lahia, in the northern Gaza Strip on July 29, 2024.

The mounting humanitarian crisis in the Gaza Strip has certainly added to the pressure on Biden to condition the billions of dollars in military funding and other assistance that the United States provides to Israel.

Even so, Netanyahu’s enthusiasm for stressing the importance of maintaining military ties between Israel and the US reflects the deepening cooperation between the two countries in many areas.

We're not only protecting ourselves, we're protecting you… Our enemies are your enemy, our fight is your fight, our victory will be your victory

Israeli Prime Minister Benjamin Netanyahu to the US Congress

Washington's military support for Israel is enshrined in the third 10-year Memorandum of Understanding (MoU) signed between the two countries in 2016, which commenced in 2018. This provides $38bn in military aid over 10 years.

Apart from backing a key ally, Washington believes its continued support for Israel reflects their shared foreign policy objectives in the Middle East.

A few billion more

More recently, in the weeks after the Hamas attacks of 7 October, Israel received a fresh aid package of $17bn, with military aid comprising a significant chunk.

That new package was passed by Congress despite mounting criticism in the US over the Netanyahu government's handling of the Gaza war, where the death toll is approaching 40,000. The vast majority are civilians.

AFP Photo / Handout / Israeli Army
An Israeli sniper in the Gaza Strip in an IDF handout photo dated 16 July 2024.

Palestinian rights advocates denounced the money for weapons with the reminder that Israel currently stands accused before the International Criminal Court of committing genocide against Palestinians.

Biden said the money would help Israel protect itself from attacks by Iran. He said the package, which also gave assistance to Ukraine and Taiwan, was a "good day for world peace" that would help improve the long-term security of the US.

"My commitment to Israel—I want to make clear again—is ironclad," Biden told reporters. "The security of Israel is critical."

Building a fortress

US support for Israel over recent decades has turbocharged its development into a major military power, although they do not have a legally binding mutual defence pact like the US has with allies such as Japan and NATO.

Evelyn Hockstein / Reuters
US President Joe Biden (R) is welcomed by Israeli Prime Minister Benjamin Netanyahu in Tel Aviv, on 18 October 2023.

Israel is on a short-list of "major non-NATO allies", which means it has access to some of the most advanced US military technologies.

It has become the largest recipient of US foreign aid. Since its founding in 1948, it has had around $310bn in economic and military assistance.

Under the 2016 MoU, Israel gets $3.3bn a year in grants under the Foreign Military Financing (FMF) programme, or roughly 15% of Israel's entire defence budget.

Israel is the largest recipient of US foreign aid. Since its founding in 1948, it has had around $310bn in economic and military assistance.

The FMF stipulates that Israel must use the funds to purchase American arms, but Israel's special status means that it can use some of the US aid to buy equipment from Israeli defence firms, a concession not afforded to other such recipients.

Money for missiles

In addition, another $500m a year is set aside for joint US-Israeli missile defence programmes, a key area of military cooperation between the two, where they collaborate closely on research, development, and production.

A notable achievement in missile defence was the Iron Dome air defence system. Developed by the Israelis, the US then became a production partner in 2014.

Ayal Margolin / Reuters
Interceptions of rockets launched from Lebanon towards Israel on 16 July 2024.

The Iron Dome was developed after Israel's 2006 war with Hezbollah, when the Israelis recognised that better air defence systems were needed to counter the Lebanon-based militia's missile threat.

US military contractor Raytheon now manufactures the Tamir interceptor missiles used in Israel's Iron Dome system at its facilities in Arizona.

Other key missile development programmes developed from US-Israel military cooperation include David's Sling (designed to shoot down rockets fired from between 62-124 miles away) and the hypersonic Arrow anti-ballistic missiles (effective at longer ranges).

Jets and weaponry

Israel's privileged military relationship with the US led to it being the first foreign country to fly the F-35 Joint Strike Fighter, considered the most technologically advanced fighter jet ever made.

Amir Cohen / Reuters
A F-35 fighter jet flies during a graduation ceremony for Israeli Air Force pilots at Hatzerim Airbase, in southern Israel, June 29, 2023.

Currently in the process of buying 75 of them, Israel has so far taken delivery of 36, paying for these largely US-made jets with US money.

Since the 7 October attacks, the US has kept the military hardware flowing to Israel, including tank and artillery ammunition, bombs, rockets, and small arms.

In addition, the Israeli military is reported to be purchasing high-tech US military equipment such as surveillance drones and 50 F-15 fighters.

The US has also agreed to lease Israel two Iron Dome missile batteries that Washington had previously purchased from Israel.

It's what you do with it

Despite the close cooperation between the two countries, the Biden administration still remains concerned about Israel's handling of its war in Gaza.

In February, Biden issued a national security memo requiring recipients of US military aid to give written assurances that they would observe international law in their use of the aid.

Currently in the process of buying 75 F-35 jets, Israel has so far taken delivery of 36, paying for these largely US-made jets with US money.

Biden is also aware of Washington's obligations under the Leahy Law. Passed by Congress in 2008, this limits America's ability to provide security assistance to foreign governments or groups that commit gross human rights violations.

AFP
Israeli Prime Minister Benjamin Netanyahu during a press conference after a mini-war cabinet meeting on October 28, 2023.

There is certainly a precedent for US clamp-down in the supply arms to the Israelis if Washington believes they are violating international law.

Back in the 1980s, during Ronald Reagan's administration, the US banned the transfer of cluster munitions to Israel for several years after it found the Israeli military had used them against civilians in Lebanon.

Irrespective of the long history of military cooperation between the two countries, it is not beyond the realms of possibility that Israel could face a similar ban if Netanyahu persists with his uncompromising approach in Gaza.

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