U.S. may stop subsidizing Israeli defense firms

NEW YORK – If you want to understand just how special the U.S.-Israel relationship really is, look no further than the annual aid package. Israel is not only the greatest beneficiary of U.S. defense assistance, but also the only one allowed to spend a portion of that assistance on weapons and equipment from its own industry. Everyone else has to buy American.

President Barack Obama is now looking to end this U.S. subsidy of Israel’s defense sector, according to U.S. and Israeli officials. They say the “offshore procurement” provision, unique to Israel’s aid package, is one of the last obstacles to completing an agreement to extend aid until 2029. Obama would like to phase out the agreement that allows Israel to spend 26 percent of U.S. annual aid at home. Prime Minister Benjamin Netanyahu, so far, disagrees.

h/t MFS

  • Maggat

    Obama & only Obama wants to stop the aid agreement with Israel.

  • Everyone Else

    Here’s the unsaid part of the story:

    “Obama is demanding that Israel surrender its diplomatic and military independence to the White House.”


  • caliroxanne

    I think the aid to Israel is not that well understood. Much of it is actually loan guarantees, on which Israel has never defaulted. In terms of the money Israel receives, most of it is actually required to come back to the U.S. through military and related purchases. Additionally, they also buy American outside of any aid money, for example, El Al’s all Boeing fleet. Furthermore, American aid money spent in Israel is usually in the form of joint U.S.-Israeli R&D that benefits both.

    In terms of actual American tax payer money, we’ve spent trillions rebuilding Europe after WW2 (from which they still benefit) as well as protecting them to this day. In spite of this, the smug, arrogant and supercilious Europeans hate America!

    We spend countless billions maintaining a military presence in wealthy industrial giant, S. Korea, and I’m not sure that it’s appreciated (S. Korean rapper “Gangnam Style” PSY’s anti-American song: http://www.cnn.com/2012/12/07/showbiz/psy-apology-irpt/

    We spend countless billions defending and providing protection for wealthy Muslim countries that also hate us. Even Ron Paul, not much of an Israel lover, said that

    the Arab and the Muslim nations get twice as much foreign aid as Israel. It’s estimated that 2/3 of U.S. foreign aid goes to Muslim countries.

  • dukestreet

    Considering who Obama is and how he’s behaved as long as he’s been in public life, this is not at all surprising. He’s always been pro-Muslim & anti-Israel. Hopefully, Clinton don’t get in the White House and the new president will correct anything Obama does with this. I suspect that that is not what will happen though.

  • Alain

    I think ending all American “aid” as it stands to Israel would be a good thing for Israel.

  • Okay.

    Maybe Israel should go it alone. The Israelis are smart chaps.

    Then Israel can buck the Jew-Hater-in-Chief for once and for all.

    • V10_Rob

      Lack of dependence and not being beholden to anyone is the way to go, for individuals and nations alike. You don’t have to be entirely self-contained and self-sustaining in all things, but you should always be secure enough and have options, so that you can tell someone to go f*** themselves and walk away.

      • I think Israel (among others) is a nation that must do so at this point. It’s not like Obama will help, anyway.

  • vwVwwVwv

    20,,,,01,,,,2016 new US Independence Day will bring it in order,
    when hillery will visit a prison for some yers.

  • Hard Little Machine

    Israel needs to get what they can get out of the current deal and then dial back ties to the US enormously. I bet in 6 months they’ll discover the F-35 isn’t worth it and they back out.

  • Norman_In_New_York

    Israel should swallow hard and refuse aid from the U.S. as long as Obama remains president. Its defense industries produce products with every bit the quality turned out by the U.S., and there is no reason why gaps in hardware cannot be filled through research and development. The principle at stake here is that he who takes the king’s shilling becomes the king’s man.