Congress and U.S. Aid to Israel
U.S. Aid to Israel
- A Conservative Estimate of Total U.S. Aid To Israel: More Than $130 Billion
- The Costs to American Taxpayers of the Israeli-Palestinian Conflict: $3 Trillion (2003)
- U.S. Financial Aid To Israel: Figures, Facts, and Impact
Pro-Israel PAC Contributions to Congressional Candidates
- 2012 Pro-Israel PAC Contributions and Top Ten 2012 & Career Recipients (738KB PDF)
- 2010 Pro-Israel PAC Contributions to 2010 Congressional Candidates (668KB PDF)
- 2008 Pro-Israel PAC Contributions to Congressional Candidates (100KB PDF)
Congressional Voting Records
- 112th Congress Voting Records (137KB PDF)
- 111th Congress Voting Records (137KB PDF)
- 110th Congress Voting Records (114KB PDF)
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November 2011, Pages 22-23
A Conservative Estimate of Total U.S. Aid To Israel: More Than $123 Billion
By Shirl McArthur
The current estimate by the Washington Report on Middle East Affairs of cumulative total U.S. direct aid to Israel is $123.202 billion, updating the figure in our November 2008 issue. Because parts of U.S. aid to Israel are buried in the budgets of various U.S. agencies or in a form not easily quantified—such as the early disbursement of aid, giving Israel a direct benefit of interest income and the U.S. Treasury a corresponding loss—it is virtually impossible to arrive at an exact dollar amount.
Our latest estimate is a conservative, defensible accounting of U.S. direct aid to Israel. It does not include the indirect benefits to Israel resulting from U.S. aid, nor the substantial indirect or consequential cost to the U.S. as a result of its blind support for Israel. Most significantly, perhaps, it does not include the costs resulting from the U.S. invasion and occupation of Iraq—hundreds of billions of dollars, thousands of U.S. and allied casualties, and untold tens of thousands of Iraqi killed and wounded—which is widely believed in the Arab world, and by many Americans as well, to have been undertaken for the benefit of Israel.
Among the real benefits to Israel that are not counted as a direct cost to the U.S. taxpayer is the provision allowing Israel to spend 26.3 percent of each year's military aid in Israel rather than from American companies (no other recipient of U.S. military aid gets this benefit), which has resulted in an increasingly sophisticated Israeli defense industry. As a result, according to the Congressional Research Service (CRS), between 2001 and 2008 Israel was the seventh-largest arms exporter to the world, with total sales of $9.9 billion. Also in contrast with other countries receiving U.S. military aid, who must purchase through the Department of Defense (DOD), Israel deals directly with the U.S. companies, with no DOD review.
Another indirect benefit to Israel is the loan guarantees that Washington has extended to Israel since 1972. While these have not yet cost the U.S., they have enabled Israel to borrow from commercial sources at more favorable terms and lower interest rates, since the U.S. guarantees payment of the loans should Israel default.
Most recently, the FY '03 war supplemental appropriations act authorized $9 billion in loan guarantees to Israel over three years. In FY '05 these were extended until FY '07, and in '06 they were extended again through FY '11, with a "carryover" provision that Israel may draw on unused U.S. guarantees through FY '12. CRS reported that Israel has not borrowed any funds against these guarantees since FY '05, speculating that it perhaps views the guarantees as a "last resort" option should their normal source of funds—unguaranteed local and international bond issuances—become too expensive.
Subsidies for Israel's Illegal Colonists And Colonies
A real benefit to Israel that represents another indirect, but unquantifiable, cost to the U.S. taxpayer is the private, tax-exempt money collected by charitable American Jewish groups and then sent to support Israel's colonists ("settlers") and colony-related causes in occupied Palestinian territories, including by groups designated by the U.S. as foreign terrorist organizations (see November 2007 Washington Report, p. 30).
In July 2010, The New York Times published a lengthy article on these "charities," reporting that hundreds of millions of dollars have flowed to settlers and settlement-related causes, including to support settler extremists in Hebron and East Jerusalem. While most of the money appears to have gone to purposes that are legal under U.S. laws, theTimes reported, it added that these funds have "also paid for more legally questionable commodities: housing as well as guard dogs, bulletproof vests, rifle scopes and vehicles to secure outposts deep in occupied areas."
Since every tax-exempt dollar that goes to the colonies represents a loss of, conservatively, 20 cents to the U.S. Treasury, that means that the U.S. taxpayer has indirectly subsidized Israel's illegal colonies to the tune of tens of millions of dollars, or more.
Components of Israel Aid
As with previous Washington Report estimates of U.S. aid to Israel, this report draws largely from CRS' latest report on "U.S. Foreign Aid to Israel," which uses available and verifiable numbers, primarily from the foreign operations appropriations bills. Table 1 on the facing page is based on the appendix to that report plus this magazine's reporting and research, especially for the columns showing DOD funds and interest income to Israel resulting from the early disbursement of aid.
Not counting the huge sums being spent in Iraq and Afghanistan over the past decade, Israel is the largest cumulative recipient of U.S. aid since World War II. The $3 billion or so per year that Israel receives from the U.S. amounts to about $500 per Israeli. The largest amounts have been military grants (Foreign Military Financing, or FMF) and economic grants (Economic Support Funds, or ESF). In August 2007 the U.S. and Israel agreed on a new, 10-year aid plan, beginning in FY '09 and calling for no ESF and incremental annual increases in FMF, reaching $3 billion by FY '11 and remaining at that level through FY '18.
Another ongoing item is so-called "migration and refugee assistance." This originally was intended to help Israel absorb Jewish refugees from the Soviet Union, but was expanded in 1985 to include "refugees resettling in Israel." In fact, however, Israel doesn't differentiate between refugees and other immigrants, so this money subsidizes all immigrants to Israel.
Israel also receives regular grants from the "American Schools and Hospitals Abroad" (ASHA) program.
A significant amount of aid to Israel comes from the DOD budget for so-called "joint defense projects"—although to date the Pentagon has shown little interest in these projects for its own use. Previous Washington Report estimates identified about $7.694 billion to Israel from the DOD budget through FY '08. To that has been added amounts for FYs '09, '10 and '11, as shown in Table 1. Of the $415 million shown for FY '11, the most significant amount is the $205 million appropriated to support Israel's "Iron Dome" short-range missile defense system.
A significant part of U.S. support for Israel's defense program is the deployment to Israel in 2008 of the X-Band radar system to detect incoming missiles. Since this system is U.S.-owned and -operated (meaning the constant presence on Israeli soil of U.S. troops and defense contractors), its costs are not reflected in these numbers.
Table 1 also shows a conservative estimate of Israel's interest income resulting from the early disbursement of U.S. aid. Assuming that Israel's aid money is drawn down over the course of each year, a 2 percent interest rate is applied to one-half of the aid for FY '09 and '10, and a 3 percent rate for FY '11.
The "All Other" column on Table 1 reflects information from the CRS report, plus this magazine's reporting and research, giving amounts from other U.S. departments and agencies. Our 2006 report uncovered $456.7 million in previously unreported grants and endowments, mostly to U.S.-Israeli scientific organizations. The two largest are the BIRD Foundation (research and development) and the BARD Fund (agricultural research). The BARD Fund gets about $500,000 a year from the Agriculture Department. In addition, in each of FY '09 and '10, Congress appropriated $2 million from the Energy Department for the U.S.-Israeli Energy Cooperation Program, and in FY '10 the Energy Department announced that it would contribute $3.3 million to the BIRD Foundation for clean energy projects.
For those who wish to look up more details, Table 2 above gives citations for the foreign aid and DOD appropriations bills for the past five years.
Shirl McArthur, a retired U.S. foreign service officer, is a consultant based in the Washington, DC area.Add a comment
PRO-ISRAEL PAC CONTRIBUTIONS TO U.S. SENATORS AS OF 12/31/10
|State||Candidate||Party||Status||Next Election Cycle||Career Total||Committees|
|Alabama||Sessions, Jeff||R||I||2014||224,325||AS, B|
|McCain, John||R||I||2016||177,500||AS, C|
|Feinstein, Dianne||D||I||2012||147,342||A(D), I|
|Nelson, Bill||R||I||2012||127,221||AS, B, FR|
|Georgia||Chambliss, Saxby||R||I||2014||84,500||AS, I|
|Hawaii||Akaka, Daniel K||D||I||2012||122,000||AS|
|Inouye, Daniel K||D||I||2016||262,425||A|
|Illinois||Durbin, Richard||D||I||2014||373,421||A(D, FO)|
|Harkin, Tom||D||I||2014||552,950||A(D, FO)|
|Roberts, Pat||R||I||2014||51,000||AS, I|
|Louisiana||Landrieu, Mary L||D||I||2014||205,389|
|Maine||Collins, Susan M.||R||I||2014||109,000||AS|
|Mikulsi, Barbara||D||I||2016||213,099||A(D, FO)|
|Michigan||Levin, Carl||D||I||2014||728,737||AS, I|
|Wicker, Roger F.||R||I||2012||49,900||AS,C|
|Nelson, E. Benj.||D||I||2012||99,260|
|Nevada||Ensign, John||R||N||2012||44,200||AS, B|
|New Hampshire||Ayotte, Kelly||R||I||2016||14,500|
|New Jersey||Lautenberg, Frank||D||I||2014||503,578|
|New Mexico||Bingaman, Jeff||D||I||2012||272,425|
|New York||Gillibrand, Kirsten||D||I||2012||62,450|
|North Carolina||Burr, Richard||D||I||2016||34,250|
|North Dakota||Conrad, Kent||D||N||2012||267,539||B|
|Inhofe, James M.||R||I||2014||128,800||AS|
|Wyden, Ron||D||I||2016||344,962||B, I|
|Rhode Island||Whitehouse, Sheldon||D||I||2012||77,000|
|South Carolina||DeMint, James||R||I||2016||28,470|
|Graham, Lindsey||R||I||2014||62,500||AS, B|
|South Dakota||Johnson, Tim||D||I||2014||192,737||A(FO), B|
|Texas||Cornyn, John||R||I||2014||67,480||AS, B|
|Hutchison, Kay Bailey||R||N||2012||31,000||A(D)|
|Hatch, Orrin G.||R||I||2012||57,700||I|
|Virginia||Webb, James||D||N||2012||0||AF, FR|
|Warner, Mark||D||I||2014||39,000||AS, I|
|Murray, Patty||D||I||2016||195,293||A, B|
|West Virginia||Manchin, Joe||D||I||2016||9,000|
|Rockefeller, John D. IV||D||I||2014||235,700||I|
|Wyoming||Barrasso, John A.||R||I||2012||11,000||FR|
KEY: The “Career Total” column represents the total amount of pro-Israel PAC money received from Jan. 1, 1978 through Dec. 31, 2010. S=Senate, H=House of Representatives. Party affiliation: D=Democrat, R=Republican, Ref=Reform, DFL=Democratic Farmers Labor, Ind=Independent, Lib=Libertarian. Status: C=Challenger, I=Incumbent, N=Not Running, O=Open Seat (no incumbent). *=Senate election year, #=House member running for Senate seat, †=Special Election. Committees: A=Appropriations (D=Defense subcommittee, FO=Foreign Operations subcommittee, NS=National Security subcommittee), AS=Armed Services, B=Budget, C=Commerce, FR=Foreign Relations (NE=Near Eastern and South Asian Affairs subcommittee), I=Intelligence, IR=International Relations, NS=National Security, W=Ways and Means. “–” indicates money returned by candidate, “0” that all money received was returned, “” = independent expenditures on behalf of candidate (not included in candidate totals). All 2012 races are in bold.
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U.S. Financial Aid To Israel: Figures, Facts, and Impact
Benefits to Israel of U.S. Aid
Since 1949 (As of November 1, 1997)
Foreign Aid Grants and Loans
Other U.S. Aid (12.2% of Foreign Aid)
Interest to Israel from Advanced Payments
Total Benefits per Israeli
Aid to Israel
Interest Costs Borne by U.S.
Total Cost to U.S. Taxpayers
Total Taxpayer Cost per Israeli
U.S. Aid To Israel: The Strategic Functions
U.S. Aid to Israel: What U.S. Taxpayer Should Know
U.S. Aid to Israel: Interpreting the 'Strategic Relationship'
The Cost of Israel to U.S. Taxpayers: True Lies About U.S. Aid to Israel
By Stephen Zunes
Dr. Zunes is an assistant professor in the Department of Politics at the University of San Francisco
Since 1992, the U.S. has offered Israel an additional $2 billion annually in loan guarantees. Congressional researchers have disclosed that between 1974 and 1989, $16.4 billion in U.S. military loans were converted to grants and that this was the understanding from the beginning. Indeed, all past U.S. loans to Israel have eventually been forgiven by Congress, which has undoubtedly helped Israel's often-touted claim that they have never defaulted on a U.S. government loan. U.S. policy since 1984 has been that economic assistance to Israel must equal or exceed Israel's annual debt repayment to the United States. Unlike other countries, which receive aid in quarterly installments, aid to Israel since 1982 has been given in a lump sum at the beginning of the fiscal year, leaving the U.S. government to borrow from future revenues. Israel even lends some of this money back through U.S. treasury bills and collects the additional interest.
In addition, there is the more than $1.5 billion in private U.S. funds that go to Israel annually in the form of $1 billion in private tax-deductible donations and $500 million in Israeli bonds. The ability of Americans to make what amounts to tax-deductible contributions to a foreign government, made possible through a number of Jewish charities, does not exist with any other country. Nor do these figures include short- and long-term commercial loans from U.S. banks, which have been as high as $1 billion annually in recent years.
Total U.S. aid to Israel is approximately one-third of the American foreign-aid budget, even though Israel comprises just .001 percent of the world's population and already has one of the world's higher per capita incomes. Indeed, Israel's GNP is higher than the combined GNP of Egypt, Lebanon, Syria, Jordan, the West Bank and Gaza. With a per capita income of about $14,000, Israel ranks as the sixteenth wealthiest country in the world; Israelis enjoy a higher per capita income than oil-rich Saudi Arabia and are only slightly less well-off than most Western European countries.
AID does not term economic aid to Israel as development assistance, but instead uses the term "economic support funding." Given Israel's relative prosperity, U.S. aid to Israel is becoming increasingly controversial. In 1994, Yossi Beilen, deputy foreign minister of Israel and a Knesset member, told the Women's International Zionist organization, "If our economic situation is better than in many of your countries, how can we go on asking for your charity?"
by Tom Malthaner
This morning as I was walking down Shuhada Street in Hebron, I saw graffiti marking the newly painted storefronts and awnings. Although three months past schedule and 100 percent over budget, the renovation of Shuhada Street was finally completed this week. The project manager said the reason for the delay and cost overruns was the sabotage of the project by the Israeli settlers of the Beit Hadassah settlement complex in Hebron. They broke the street lights, stoned project workers, shot out the windows of bulldozers and other heavy equipment with pellet guns, broke paving stones before they were laid and now have defaced again the homes and shops of Palestinians with graffiti. The settlers did not want Shuhada St. opened to Palestinian traffic as was agreed to under Oslo 2. This renovation project is paid for by USAID funds and it makes me angry that my tax dollars have paid for improvements that have been destroyed by the settlers.
Most Americans are not aware how much of their tax revenue our government sends to Israel. For the fiscal year ending in September 30, 1997, the U.S. has given Israel $6.72 billion: $6.194 billion falls under Israel's foreign aid allotment and $526 million comes from agencies such as the Department of Commerce, the U.S. Information Agency and the Pentagon. The $6.72 billion figure does not include loan guarantees and annual compound interest totalling $3.122 billion the U.S. pays on money borrowed to give to Israel. It does not include the cost to U.S. taxpayers of IRS tax exemptions that donors can claim when they donate money to Israeli charities. (Donors claim approximately $1 billion in Federal tax deductions annually. This ultimately costs other U.S. tax payers $280 million to $390 million.)
When grant, loans, interest and tax deductions are added together for the fiscal year ending in September 30, 1997, our special relationship with Israel cost U.S. taxpayers over $10 billion.
Since 1949 the U.S. has given Israel a total of $83.205 billion. The interest costs borne by U.S. tax payers on behalf of Israel are $49.937 billion, thus making the total amount of aid given to Israel since 1949 $133.132 billion. This may mean that U.S. government has given more federal aid to the average Israeli citizen in a given year than it has given to the average American citizen.
I am angry when I see Israeli settlers from Hebron destroy improvements made to Shuhada Street with my tax money. Also, it angers me that my government is giving over $10 billion to a country that is more prosperous than most of the other countries in the world and uses much of its money for strengthening its military and the oppression of the Palestinian people.
by Stephen Zunes
"The U.S. aid relationship with Israel is unlike any other in the world," said Stephen Zunes during a January 26 CPAP presentation. "In sheer volume, the amount is the most generous foreign aid program ever between any two countries," added Zunes, associate professor of Politics and chair of the Peace and Justice Studies Program at the University of San Francisco.
He explored the strategic reasoning behind the aid, asserting that it parallels the "needs of American arms exporters" and the role "Israel could play in advancing U.S. strategic interests in the region."
Although Israel is an "advanced, industrialized, technologically sophisticated country," it "receives more U.S. aid per capita annually than the total annual [Gross Domestic Product] per capita of several Arab states." Approximately a third of the entire U.S. foreign aid budget goes to Israel, "even though Israel comprises just...one-thousandth of the world's total population, and already has one of the world's higher per capita incomes."
U.S. government officials argue that this money is necessary for "moral" reasons-some even say that Israel is a "democracy battling for its very survival." If that were the real reason, however, aid should have been highest during Israel's early years, and would have declined as Israel grew stronger. Yet "the pattern...has been just the opposite." According to Zunes, "99 percent of all U.S. aid to Israel took place after the June 1967 war, when Israel found itself more powerful than any combination of Arab armies...."
The U.S. supports Israel's dominance so it can serve as "a surrogate for American interests in this vital strategic region." "Israel has helped defeat radical nationalist movements" and has been a "testing ground for U.S. made weaponry." Moreover, the intelligence agencies of both countries have "collaborated," and "Israel has funneled U.S. arms to third countries that the U.S. [could] not send arms to directly,...Iike South Africa, like the Contras, Guatemala under the military junta, [and] Iran." Zunes cited an Israeli analyst who said: "'It's like Israel has just become another federal agency when it's convenient to use and you want something done quietly."' Although the strategic relationship between the United States and the Gulf Arab states in the region has been strengthening in recent years, these states "do not have the political stability, the technological sophistication, [or] the number of higher-trained armed forces personnel" as does Israel.
Matti Peled, former Israeli major general and Knesset member, told Zunes that he and most Israeli generals believe this aid is "little more than an American subsidy to U.S. arms manufacturers," considering that the majority of military aid to Israel is used to buy weapons from the U.S. Moreover, arms to Israel create more demand for weaponry in Arab states. According to Zunes, "the Israelis announced back in 1991 that they supported the idea of a freeze in Middle East arms transfers, yet it was the United States that rejected it."
In the fall of 1993-when many had high hopes for peace-78 senators wrote to former President Bill Clinton insisting that aid to Israel remain "at current levels." Their "only reason" was the "massive procurement of sophisticated arms by Arab states." The letter neglected to mention that 80 percent of those arms to Arab countries came from the U.S. "I'm not denying for a moment the power of AIPAC [the American Israel Public Affairs Committee], the pro-Israel lobby," and other similar groups, Zunes said. Yet the "Aerospace Industry Association which promotes these massive arms shipments...is even more influential." This association has given two times more money to campaigns than all of the pro-Israel groups combined. Its "force on Capitol Hill, in terms of lobbying, surpasses that of even AIPAC." Zunes asserted that the "general thrust of U.S. policy would be pretty much the same even if AIPAC didn't exist. We didn't need a pro-Indonesia lobby to support Indonesia in its savage repression of East Timor all these years." This is a complex issue, and Zunes said that he did not want to be "conspiratorial," but he asked the audience to imagine what "Palestinian industriousness, Israeli technology, and Arabian oil money...would do to transform the Middle East.... [W]hat would that mean to American arms manufacturers? Oil companies? Pentagon planners?"
"An increasing number of Israelis are pointing out" that these funds are not in Israel's best interest. Quoting Peled, Zunes said, "this aid pushes Israel 'toward a posture of callous intransigence' in terms of the peace process." Moreover, for every dollar the U.S. sends in arms aid, Israel must spend two to three dollars to train people to use the weaponry, to buy parts, and in other ways make use of the aid. Even "main-stream Israeli economists are saying [it] is very harmful to the country's future."
The Israeli paper Yediot Aharonot described Israel as "'the godfather's messenger' since [Israel] undertake[s] the 'dirty work' of a godfather who 'always tries to appear to be the owner of some large, respectable business."' Israeli satirist B. Michael refers to U.S. aid this way: "'My master gives me food to eat and I bite those whom he tells me to bite. It's called strategic cooperation." 'To challenge this strategic relationship, one cannot focus solely on the Israeli lobby but must also examine these "broader forces as well." "Until we tackle this issue head-on," it will be "very difficult to win" in other areas relating to Palestine.
"The results" of the short-term thinking behind U.S. policy "are tragic," not just for the "immediate victims" but "eventually [for] Israel itself" and "American interests in the region." The U.S. is sending enormous amounts of aid to the Middle East, and yet "we are less secure than ever"-both in terms of U.S. interests abroad and for individual Americans. Zunes referred to a "growing and increasing hostility [of] the average Arab toward the United States." In the long term, said Zunes, "peace and stability and cooperation with the vast Arab world is far more important for U.S. interests than this alliance with Israel."
This is not only an issue for those who are working for Palestinian rights, but it also "jeopardizes the entire agenda of those of us concerned about human rights, concerned about arms control, concerned about international law." Zunes sees significant potential in "building a broad-based movement around it."
The above text is based on remarks, delivered on. 26 January, 2001 by Stephen Zunes - Associate Professor of Politics and Chair of the Peace and Justice Studies Program at San Francisco University.
By Richard H. Curtiss
For many years the American media said that "Israel receives $1.8 billion in military aid" or that "Israel receives $1.2 billion in economic aid." Both statements were true, but since they were never combined to give us the complete total of annual U.S. aid to Israel, they also were lies—true lies.
Recently Americans have begun to read and hear that "Israel receives $3 billion in annual U.S. foreign aid." That's true. But it's still a lie. The problem is that in fiscal 1997 alone, Israel received from a variety of other U.S. federal budgets at least $525.8 million above and beyond its $3 billion from the foreign aid budget, and yet another $2 billion in federal loan guarantees. So the complete total of U.S. grants and loan guarantees to Israel for fiscal 1997 was $5,525,800,000.
One can truthfully blame the mainstream media for never digging out these figures for themselves, because none ever have. They were compiled by the Washington Report on Middle East Affairs. But the mainstream media certainly are not alone. Although Congress authorizes America's foreign aid total, the fact that more than a third of it goes to a country smaller in both area and population than Hong Kong probably never has been mentioned on the floor of the Senate or House. Yet it's been going on for more than a generation.
Probably the only members of Congress who even suspect the full total of U.S. funds received by Israel each year are the privileged few committee members who actually mark it up. And almost all members of the concerned committees are Jewish, have taken huge campaign donations orchestrated by Israel's Washington, DC lobby, the American Israel Public Affairs Committee (AIPAC), or both. These congressional committee members are paid to act, not talk. So they do and they don't.
The same applies to the president, the secretary of state, and the foreign aid administrator. They all submit a budget that includes aid for Israel, which Congress approves, or increases, but never cuts. But no one in the executive branch mentions that of the few remaining U.S. aid recipients worldwide, all of the others are developing nations which either make their military bases available to the U.S., are key members of international alliances in which the U.S. participates, or have suffered some crippling blow of nature to their abilities to feed their people such as earthquakes, floods or droughts.
Israel, whose troubles arise solely from its unwillingness to give back land it seized in the 1967 war in return for peace with its neighbors, does not fit those criteria. In fact, Israel's 1995 per capita gross domestic product was $15,800. That put it below Britain at $19,500 and Italy at $18,700 and just above Ireland at $15,400 and Spain at $14,300.
All four of those European countries have contributed a very large share of immigrants to the U.S., yet none has organized an ethnic group to lobby for U.S. foreign aid. Instead, all four send funds and volunteers to do economic development and emergency relief work in other less fortunate parts of the world.
The lobby that Israel and its supporters have built in the United States to make all this aid happen, and to ban discussion of it from the national dialogue, goes far beyond AIPAC, with its $15 million budget, its 150 employees, and its five or six registered lobbyists who manage to visit every member of Congress individually once or twice a year.
AIPAC, in turn, can draw upon the resources of the Conference of Presidents of Major American Jewish Organizations, a roof group set up solely to coordinate the efforts of some 52 national Jewish organizations on behalf of Israel.
Among them are Hadassah, the Zionist women's organization, which organizes a steady stream of American Jewish visitors to Israel; the American Jewish Congress, which mobilizes support for Israel among members of the traditionally left-of-center Jewish mainstream; and the American Jewish Committee, which plays the same role within the growing middle-of-the-road and right-of-center Jewish community. The American Jewish Committee also publishes Commentary,one of the Israel lobby's principal national publications.
Perhaps the most controversial of these groups is B'nai B'rith's Anti-Defamation League. Its original highly commendable purpose was to protect the civil rights of American Jews. Over the past generation, however, the ADL has regressed into a conspiratorial and, with a $45 million budget, extremely well-funded hate group.
In the 1980s, during the tenure of chairman Seymour Reich, who went on to become chairman of the Conference of Presidents, ADL was found to have circulated two annual fund-raising letters warning Jewish parents against allegedly negative influences on their children arising from the increasing Arab presence on American university campuses.
More recently, FBI raids on ADL's Los Angeles and San Francisco offices revealed that an ADL operative had purchased files stolen from the San Francisco police department that a court had ordered destroyed because they violated the civil rights of the individuals on whom they had been compiled. ADL, it was shown, had added the illegally prepared and illegally obtained material to its own secret files, compiled by planting informants among Arab-American, African-American, anti-Apartheid and peace and justice groups.
The ADL infiltrators took notes of the names and remarks of speakers and members of audiences at programs organized by such groups. ADL agents even recorded the license plates of persons attending such programs and then suborned corrupt motor vehicles department employees or renegade police officers to identify the owners.
Although one of the principal offenders fled the United States to escape prosecution, no significant penalties were assessed. ADL's Northern California office was ordered to comply with requests by persons upon whom dossiers had been prepared to see their own files, but no one went to jail and as yet no one has paid fines.
Not surprisingly, a defecting employee revealed in an article he published in the Washington Report on Middle East Affairs that AIPAC, too, has such "enemies" files. They are compiled for use by pro-Israel journalists like Steven Emerson and other so-called "terrorism experts," and also by professional, academic or journalistic rivals of the persons described for use in black-listing, defaming, or denouncing them. What is never revealed is that AIPAC's "opposition research" department, under the supervision of Michael Lewis, son of famed Princeton University Orientalist Bernard Lewis, is the source of this defamatory material.
But this is not AIPAC's most controversial activity. In the 1970s, when Congress put a cap on the amount its members could earn from speakers' fees and book royalties over and above their salaries, it halted AIPAC's most effective ways of paying off members for voting according to AIPAC recommendations. Members of AIPAC's national board of directors solved the problem by returning to their home states and creating political action committees (PACs).
Most special interests have PACs, as do many major corporations, labor unions, trade associations and public-interest groups. But the pro-Israel groups went wild. To date some 126 pro-Israel PACs have been registered, and no fewer than 50 have been active in every national election over the past generation.
An individual voter can give up to $2,000 to a candidate in an election cycle, and a PAC can give a candidate up to $10,000. However, a single special interest with 50 PACs can give a candidate who is facing a tough opponent, and who has voted according to its recommendations, up to half a million dollars. That's enough to buy all the television time needed to get elected in most parts of the country.
Even candidates who don't need this kind of money certainly don't want it to become available to a rival from their own party in a primary election, or to an opponent from the opposing party in a general election. As a result, all but a handful of the 535 members of the Senate and House vote as AIPAC instructs when it comes to aid to Israel, or other aspects of U.S. Middle East policy.
There is something else very special about AIPAC's network of political action committees. Nearly all have deceptive names. Who could possibly know that the Delaware Valley Good Government Association in Philadelphia, San Franciscans for Good Government in California, Cactus PAC in Arizona, Beaver PAC in Wisconsin, and even Icepac in New York are really pro-Israel PACs under deep cover?
Hiding AIPAC's Tracks
In fact, the congressmembers know it when they list the contributions they receive on the campaign statements they have to prepare for the Federal Election Commission. But their constituents don't know this when they read these statements. So just as no other special interest can put so much "hard money" into any candidate's election campaign as can the Israel lobby, no other special interest has gone to such elaborate lengths to hide its tracks.
Although AIPAC, Washington's most feared special-interest lobby, can hide how it uses both carrots and sticks to bribe or intimidate members of Congress, it can't hide all of the results.
Anyone can ask one of their representatives in Congress for a chart prepared by the Congressional Research Service, a branch of the Library of Congress, that shows Israel received $62.5 billion in foreign aid from fiscal year 1949 through fiscal year 1996. People in the national capital area also can visit the library of the U.S. Agency for International Development (USAID) in Rosslyn, Virginia, and obtain the same information, plus charts showing how much foreign aid the U.S. has given other countries as well.
Visitors will learn that in precisely the same 1949-1996 time frame, the total of U.S. foreign aid to all of the countries of sub-Saharan Africa, Latin America and the Caribbean combined was $62,497,800,000--almost exactly the amount given to tiny Israel.
According to the Population Reference Bureau of Washington, DC, in mid-1995 the sub-Saharan countries had a combined population of 568 million. The $24,415,700,000 in foreign aid they had received by then amounted to $42.99 per sub-Saharan African.
Similarly, with a combined population of 486 million, all of the countries of Latin America and the Caribbean together had received $38,254,400,000. This amounted to $79 per person.
The per capita U.S. foreign aid to Israel's 5.8 million people during the same period was $10,775.48. This meant that for every dollar the U.S. spent on an African, it spent $250.65 on an Israeli, and for every dollar it spent on someone from the Western Hemisphere outside the United States, it spent $214 on an Israeli.
These comparisons already seem shocking, but they are far from the whole truth. Using reports compiled by Clyde Mark of the Congressional Research Service and other sources, freelance writer Frank Collins tallied for theWashington Report all of the extra items for Israel buried in the budgets of the Pentagon and other federal agencies in fiscal year 1993.Washington Report news editor Shawn Twing did the same thing for fiscal years 1996 and 1997.
They uncovered $1.271 billion in extras in FY 1993, $355.3 million in FY 1996 and $525.8 million in FY 1997. These represent an average increase of 12.2 percent over the officially recorded foreign aid totals for the same fiscal years, and they probably are not complete. It's reasonable to assume, therefore, that a similar 12.2 percent hidden increase has prevailed over all of the years Israel has received aid.
As of Oct. 31, 1997 Israel will have received $3.05 billion in U.S. foreign aid for fiscal year 1997 and $3.08 billion in foreign aid for fiscal year 1998. Adding the 1997 and 1998 totals to those of previous years since 1949 yields a total of $74,157,600,000 in foreign aid grants and loans. Assuming that the actual totals from other budgets average 12.2 percent of that amount, that brings the grand total to $83,204,827,200.
But that's not quite all. Receiving its annual foreign aid appropriation during the first month of the fiscal year, instead of in quarterly installments as do other recipients, is just another special privilege Congress has voted for Israel. It enables Israel to invest the money in U.S. Treasury notes. That means that the U.S., which has to borrow the money it gives to Israel, pays interest on the money it has granted to Israel in advance, while at the same time Israel is collecting interest on the money. That interest to Israel from advance payments adds another $1.650 billion to the total, making it $84,854,827,200.That's the number you should write down for total aid to Israel. And that's $14,346 each for each man, woman and child in Israel.
It's worth noting that that figure does not include U.S. government loan guarantees to Israel, of which Israel has drawn $9.8 billion to date. They greatly reduce the interest rate the Israeli government pays on commercial loans, and they place additional burdens on U.S. taxpayers, especially if the Israeli government should default on any of them. But since neither the savings to Israel nor the costs to U.S. taxpayers can be accurately quantified, they are excluded from consideration here.
Further, friends of Israel never tire of saying that Israel has never defaulted on repayment of a U.S. government loan. It would be equally accurate to say Israel has never been required to repay a U.S. government loan. The truth of the matter is complex, and designed to be so by those who seek to conceal it from the U.S. taxpayer.
Most U.S. loans to Israel are forgiven, and many were made with the explicit understanding that they would be forgiven before Israel was required to repay them. By disguising as loans what in fact were grants, cooperating members of Congress exempted Israel from the U.S. oversight that would have accompanied grants. On other loans, Israel was expected to pay the interest and eventually to begin repaying the principal. But the so-called Cranston Amendment, which has been attached by Congress to every foreign aid appropriation since 1983, provides that economic aid to Israel will never dip below the amount Israel is required to pay on its outstanding loans. In short, whether U.S. aid is extended as grants or loans to Israel, it never returns to the Treasury.
Israel enjoys other privileges. While most countries receiving U.S. military aid funds are expected to use them for U.S. arms, ammunition and training, Israel can spend part of these funds on weapons made by Israeli manufacturers. Also, when it spends its U.S. military aid money on U.S. products, Israel frequently requires the U.S. vendor to buy components or materials from Israeli manufacturers. Thus, though Israeli politicians say that their own manufacturers and exporters are making them progressively less dependent upon U.S. aid, in fact those Israeli manufacturers and exporters are heavily subsidized by U.S. aid.
Although it's beyond the parameters of this study, it's worth mentioning that Israel also receives foreign aid from some other countries. After the United States, the principal donor of both economic and military aid to Israel is Germany.
By far the largest component of German aid has been in the form of restitution payments to victims of Nazi attrocities. But there also has been extensive German military assistance to Israel during and since the Gulf war, and a variety of German educational and research grants go to Israeli institutions. The total of German assistance in all of these categories to the Israeli government, Israeli individuals and Israeli private institutions has been some $31 billion or $5,345 per capita, bringing the per capita total of U.S. and German assistance combined to almost $20,000 per Israeli. Since very little public money is spent on the more than 20 percent of Israeli citizens who are Muslim or Christian, the actual per capita benefits received by Israel's Jewish citizens would be considerably higher.
True Cost to U.S. Taxpayers
Generous as it is, what Israelis actually got in U.S. aid is considerably less than what it has cost U.S. taxpayers to provide it. The principal difference is that so long as the U.S. runs an annual budget deficit, every dollar of aid the U.S. gives Israel has to be raised through U.S. government borrowing.
In an article in the Washington Report for December 1991/January 1992, Frank Collins estimated the costs of this interest, based upon prevailing interest rates for every year since 1949. I have updated this by applying a very conservative 5 percent interest rate for subsequent years, and confined the amount upon which the interest is calculated to grants, not loans or loan guarantees.
On this basis the $84.8 billion in grants, loans and commodities Israel has received from the U.S. since 1949 cost the U.S. an additional $49,936,880,000 in interest.
There are many other costs of Israel to U.S. taxpayers, such as most or all of the $45.6 billion in U.S. foreign aid to Egypt since Egypt made peace with Israel in 1979 (compared to $4.2 billion in U.S. aid to Egypt for the preceding 26 years). U.S. foreign aid to Egypt, which is pegged at two-thirds of U.S. foreign aid to Israel, averages $2.2 billion per year.
There also have been immense political and military costs to the U.S. for its consistent support of Israel during Israel's half-century of disputes with the Palestinians and all of its Arab neighbors. In addition, there have been the approximately $10 billion in U.S. loan guarantees and perhaps $20 billion in tax-exempt contributions made to Israel by American Jews in the nearly half-century since Israel was created.
Even excluding all of these extra costs, America's $84.8 billion in aid to Israel from fiscal years 1949 through 1998, and the interest the U.S. paid to borrow this money, has cost U.S. taxpayers $134.8 billion, not adjusted for inflation. Or, put another way, the nearly $14,630 every one of 5.8 million Israelis received from the U.S. government by Oct. 31, 1997 has cost American taxpayers $23,240 per Israeli.
It would be interesting to know how many of those American taxpayers believe they and their families have received as much from the U.S. Treasury as has everyone who has chosen to become a citizen of Israel. But it's a question that will never occur to the American public because, so long as America's mainstream media, Congress and president maintain their pact of silence, few Americans will ever know the true cost of Israel to U.S. taxpayers.
Richard Curtiss, a retired U.S. foreign service officer, is the executive editor of the Washington Report on Middle East Affairs.Add a comment
US Aid: The Lifeblood of Occupation
By Matt Bowles
Israel has maintained an illegal occupation of the West Bank and Gaza Strip (Palestinian territories) for 35 years, entrenching an apartheid regime that looks remarkably like the former South African regime.
Palestinians into small, noncontiguous bantustans, imposing closures and curfews to control where they go and when, while maintaining control over the natural resources, exploiting Palestinian labor, and prohibiting indigenous economic development.
The Israeli military (IDF)—the third or forth most powerful army in the world—routinely uses tanks, Apache helicopter gunships, and F-16 fighter jets (all subsidized by the U.S.) against a population that has no military and none of the protective institutions of a modern state.
All of this, Israel tells its citizens and the international community, is for "Israeli security." The reality, not surprisingly, is that these policies have resulted in a drastic increase in attacks on Israel. These attacks are then used as a pretext for further Israeli incursions into Palestinian areas and more violations of Palestinian human rights which makes Israeli civilians more secure; all of which further entrenches Israelÿs colonial apartheid regime. Most Americans do not realize the extent to which this is all funded by U.S. aid, nor do they understand the specific economic relationship the U.S. has with Israel and how that differs from other countries.
The aid pipeline
There are at least three ways in which aid to Israel is different from that of any other country. First, since 1982, U.S. aid to Israel has been transferred in one lump sum at the beginning of each fiscal year, which immediately begins to collect interest in U.S. banks. Aid that goes to other countries is disbursed throughout the year in quarterly installments.
Second, Israel is not required to account for specific purchases. Most countries receive aid for very specific purposes and must account for how it is spent. Israel is allowed to place US aid into its general fund, effectively eliminating any distinctions between types of aid. Therefore, U.S. tax-payers are helping to fund an illegal occupation, the expansion of colonial-settlement projects, and gross human rights violations against the Palestinian civilian population.
A third difference is the sheer amount of aid the U.S. gives to Israel, unparalleled in the history of U.S. foreign policy. Israel usually receives roughly one third of the entire foreign aid budget, despite the fact that Israel comprises less than .001 of the worldÿs population and already has one of the world's higher per capita incomes. In other words, Israel, a country of approximately 6 million people, is currently receiving more U.S. aid than all of Africa, Latin America and the Caribbean combined when you take out Egypt and Colombia.
This year, the U.S. Congress approved $2.76 billion in its annual aid package for Israel. The total amount of direct U.S. aid to Israel has been constant, at around $3 billion (usually 60% military and 40% economic) per year for the last quarter century. A new plan was recently implemented to phase out all economic aid and provide corresponding increases in military aid by 2008. This year Israel is receiving $2.04 billion in military aid and $720 million in economic aid there is only military aid.
In addition to nearly $3 billion in direct aid, Israel usually gets another $3 billion or so in indirect aid: military support from the defense budget, forgiven loans, and special grants. While some of the indirect aid is difficult to measure precisely, it is safe to say that Israelÿs total aid (direct and indirect) amounts to at least five billion dollars annually.
On top of all of this aid, a team from Israelÿs finance ministry is slated to meet with U.S. government officials this month about an additional $800 million aid package which the Clinton administration promised Israel (and the Bush administration later froze) as compensation for the costs of its withdrawal from Lebanon. The U.S. also managed to find another $28 million in the 2001 Pentagon budget to give Israel to purchase "counter terrorism equipment."
According to the American-Israeli Cooperative Enterprise (AICE), from 1949-2001 the U.S. has given Israel a total of $94,966,300,000. The direct and indirect aid from this year should put the total U.S. aid to Israel since 1949 at over one hundred billion dollars. What is not widely known, however, is that most of this aid violates American laws. The Arms Export Control Act stipulates that US-supplied weapons be used only for "legitimate self-defense."
Moreover, the U.S. Foreign Assistance Act prohibits military assistance to any country "which engages in a consistent pattern of gross violations of internationally recognized human rights." The Proxmire amendment bans military assistance to any government that refuses to sign the Nuclear Non-Proliferation Treaty and to allow inspection of its nuclear facilities, which Israel refuses to do. To understand why the U.S. spends this much money funding the brutal repression of a colonized people, it is necessary to examine the benefits for weapons manufacturers and, particularly, the role that Israel plays in the expansion and maintenance of U.S. imperialism.
A very special relationship
In the fall of 1993, when many were supporting what they hoped would become a viable peace process, 78 senators wrote to former President Bill Clinton insisting that aid to Israel remain at current levels. Their reasons were the "massive procurement of sophisticated arms by Arab states." Yet the letter neglected to mention that 80 percent of those arms to Arab countries came from the U.S. itself.
Stephen Zunes has argued that the Aerospace Industry Association (AIA), which promotes these massive arms shipments, is even more influential in determining U.S. policy towards Israel than the notorious AIPAC (American Israel Public Affairs Committee) lobby. AIA has given two times more money to campaigns than all of the pro-Israel groups combined. Zunes asserts that the general thrust of U.S. policy would be pretty much the same even if AIPAC didn't exist: "We didn't need a pro-Indonesia lobby to support Indonesia in its savage repression of East Timor all these years."
The "special relationship" between the U.S. and Israel must be understood within the overall American imperialist project and the quest for global hegemony, beginning in the late 1960s and early 1970s. For example, 99% of all U.S. aid to Israel came after 1967, despite the fact that Israel was relatively more vulnerable in earlier years (from 1948-1967). Not coincidentally, it was in 1967 that Israel won the Six Day War against several Arab countries, establishing itself as a regional superpower. Also, in the late 1960s and particularly in the early 1970s (this was around the time of the Nixon Doctrine), the U.S. was looking to establish "spheres of influence"-regional superpowers in each significant area of the world to help the U.S. police them.
The primary U.S. interest in the Middle East is, and has always been, to maintain control of the oil in the region, primarily because this is the source of energy that supplies the industrial economies of Europe and Japan. The U.S. goal has been to insure that there is no indigenous threat to their domination of these energy resources. In the late 1960s and early 1970s, the U.S. made the strategic decision to ally itself with Israel and Iran, which were referred to as "our two eyes in the middle east" and the "guardians of the gulf." It was at this point that aid increased drastically, from $24 million in 1967 (before the war), to $634 million in 1971, to a staggering $2.6 billion in 1974, where it has remained relatively consistent ever since.
Israel was to be a military stronghold, a client state, and a proxy army, protecting U.S. interests in the Middle East and throughout the world. Subsidized by the CIA, Israel served U.S. interests well beyond the immediate region, setting up dependable client regimes (usually military-based dictatorships) to control local societies. Noam Chomsky has documented this extensively: Israel was the main force that established the Mobutu dictatorship in Zaire, for example. They also supported Idi Amin in Uganda, early on, as well as Haile Selasse in Ethopia, and Emperor Bokassa in the Central African Republic.
Israel became especially useful when the U.S. came under popular human rights pressure in the 1970s to stop supporting death squads and dictatorships in Latin America. The U.S. began to use Israel as a surrogate to continue its support. Chomsky documents how Israel established close relations with the neo-Nazi and military regimes of Argentina and Chile. Israel also supported genocidal attacks on the indigenous population of Guatemala, and sent arms to El Salvador and Honduras to support the contras. This was all a secondary role, however.
The primary role for Israel was to be the Sparta of the Middle East. During the Cold War, the U.S. especially needed Israel as a proxy army because direct intervention in the region was too dangerous, as the Soviets were allied with neighboring states. Over the last thirty years, the U.S. has pursued a two-track approach to dominating the region and its resources: It has turned Israel into a military outpost (now probably the most militarized society in the world) that is economically dependent on the U.S. while propping up corrupt Arab dictatorships such as those in Egypt, Jordan and Saudi Arabia. These regimes are afraid of their own people and, thus, are very insecure. Therefore, they are inclined to collaborate with the U.S. at any cost.
Prospects for activism
Since the end of the Cold War, the nuclear threat associated with direct intervention in the Middle East has disappeared and the U.S. has started a gradual and direct militarization of the region. This began with the Gulf War—putting U.S. military bases in Saudi Arabia (the primary source of oil), among other places—and has continued through the current ‘war on terrorism.’
Although U.S. aid has not decreased yet, there have been other observable shifts. The first obvious one is the mainstream media reporting on the conflict. Although there is still, of course, an anti-Palestinian bias, the coverage has shifted significantly in comparison to ten years ago. This has been noticeable in both journalistic accounts of Israeli human rights abuses and the publication of pro-Palestinian op-eds in major papers such as the Washington Post and the Boston Globe.
There are also some stirrings in the U.S. Congress. Representative John Conyers (D-MI) requested that President Bush investigate whether Israel's use of American F-16s is violating the Arms Export Control Act. Further, Senator Robert Byrd (D-WV) recently complained about giving aid without conditions: "There are no strings on the money. There is no requirement that the bloodshed abate before the funding is released." Other elected representatives are slowly starting to open up to the issue as well, but there is a long way to go on Capital Hill.
The most important development, however, has been the rising tide of concern and activism around the Palestinian issue in the US left. The desperate plight of the Palestinians is gaining increasing prominence in the movement against Bush's "war on terrorism," and it is gradually entering into the movement against corporate globalization.
For years the Palestinian cause was marginalized by the left in America. Since this intifada broke out 17 months ago, that began to shift significantly and has moved even further since September 11. With the new "anti-war" movement, there has come a deeper understanding of U.S. policy in the Middle East and how the question of Palestine fits into progressive organizing.
In Durban, South Africa last September, at the UN Global Conference Against Racism, one of the most pressing issues on the global agenda was the Palestinian struggle against Israelÿs racist policies. 30,000 people from South Africa and around the world demonstrated against Zionism, branding it as a form of apartheid no different than the system that blacks suffered through in South Africa. Shortly after, the U.S. and Israel stormed out of the conference.
In Europe and America, a range of organizations have risen in opposition to Israeli apartheid and in support of Palestinian human rights and self-determination. Just over the last year or two, organizations such as Students for Justice in Palestine, based at the University of California at
Berkeley, have begun organizing a divestment campaign, modeled after the campaign that helped bring down South African apartheid. SUSTAIN (Stop U.S. Tax-funded Aid to Israel Now!) chapters in a number of cities have focused their efforts on stopping U.S. aid to Israel, which is the lifeblood of Israeli occupation and continued abuses of Palestinian rights.
Many Jewish organizations have emerged as well, such as Not in My Name, which counters the popular media assertion that all Jewish people blindly support the policies of the state of Israel. Jews Against the Occupation is another organization, which has taken a stand not only against the occupation, but also in support of the right of Palestinian refugees to return. These movements, and particularly their newfound connection with the larger anti-war, anti-imperialist, and anti-corporate globalization movements, are where the possibilities lie to advance the Palestinian struggle.
The hope for Palestine is in the internationalization of the struggle. The building of a massive, international movement against Israeli apartheid seems to be the most effective and promising form of resistance at this time. The demands must be that Israel comply with international law and implement the relevant UN resolutions. Specifically, it must recognize that all Palestinian refugees have the right to return, immediately end the occupation, and give all citizens of Israel equal treatment under the law.
We must demand that all U.S. aid to Israel be stopped until Israel complies with these demands. Only when the Palestinians are afforded their rights under international law, and are respected as human beings, can a genuine process of conflict resolution and healing begin. For all the hype over peace camps and dialogue initiatives, until the structural inequalities are dealt with, there will be no justice for Palestinians and, thus, no peace for Israel.
Matt Bowles is a member of SUSTAIN—Stop US Tax Funded Aid to Israel Now.
The above article was originally published in the March/April issue of Left Turn magazine.Add a comment