The United States’ strong backing of Israel has deep historical roots. The U.S. was the first country to recognize the State of Israel in 1948, with President Harry Truman extending recognition just hours after Israel’s declaration of independence. During the Cold War, Israel was viewed as a vital pro-Western ally and a counterweight to Soviet influence in the Middle East. This strategic value helped solidify American commitment to Israel’s security even as the U.S. balanced other interests in the region.
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U.S. support intensified after key conflicts like the 1967 Six-Day War and the 1973 Yom Kippur War, when Israel’s survival seemed at stake. In 1985, the United States signed its first-ever free trade agreement with Israel, underscoring the partnership’s economic dimension. Congress also designated Israel as a “major non-NATO ally”, a special status bolstering defense cooperation. Since Israel’s founding, the U.S. has provided over $150 billion (nominal dollars) in aid to Israel up to 2022, making Israel the largest cumulative recipient of U.S. foreign assistance. (In inflation-adjusted terms, that total is around $310 billion.). In short, historical experience – from Truman’s era through the Cold War and beyond – cemented the notion that supporting Israel aligns with U.S. strategic and moral interests.
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Economic Interests and High-Tech Cooperation
Beyond security, economic interests play a major role in America’s support for Israel. U.S. assistance and arms sales to Israel significantly benefit the American economy, especially the defense sector. By agreement, at least 75%–100% of U.S. military aid to Israel must be spent on American-made products, effectively making it a subsidy for U.S. defense industries. As of 2023, Israel is required to spend the entire $3.8 billion annual aid within the United States on U.S. weapons and services. This arrangement guarantees revenue for American contractors like Lockheed Martin, Boeing, Northrop Grumman, RTX (Raytheon), and General Dynamics, among others. More than 1,000 U.S. companies across 48 states have signed contracts under U.S. aid to Israel, deals worth billions of dollars supplying everything from F-35 fighter jets to precision munitions. This spending directly supports over 20,000 American jobs and indirectly tens of thousands more, according to estimates. In other words, U.S. aid to Israel “invests in America” by boosting manufacturing employment and sustaining a skilled workforce in the defense sector. For example, when Iron Dome interceptors are built in Arizona or when Israel buys Boeing F-15s, it keeps assembly lines running in the United States. Officials openly tout these benefits: the White House argued in 2024 that emergency security funding for Israel would help create or sustain jobs in dozens of U.S. states as companies ramp up to replenish Israel’s weapons stocks. Economically, Israel has thus become one of America’s best customers for military hardware – over 80% of recent U.S. aid dollars flow back to American defense firms – making the alliance financially lucrative for the United States.
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Beyond arms trade, technology and business ties between the countries are extremely robust, especially in the high-tech sector. Israel’s nickname as the “Startup Nation” is well-earned – and U.S. investors and companies avidly tap into that innovation. Nearly 20% of global venture capital investment in cybersecurity now occurs in Israel, second only to the U.S.. For a nation of just 9 million people, Israel is a powerhouse in tech innovation, particularly in cyber defense, artificial intelligence, fintech, and biotech. This presents valuable opportunities for the U.S. economy. Over 500 multinational companies have R&D centers in Israel, and about two-thirds of these are American firms. Tech giants like Intel, Microsoft, Google, Cisco, Oracle, and Amazon all operate major development labs in Israel, often focusing on cybersecurity and cutting-edge research. These investments grant U.S. companies access to top Israeli talent and new technologies. In turn, Israeli startups benefit from American capital and global market access. In 2021, venture capital funding in Israel hit a record $25 billion (up 150% from 2020), much of it from U.S. funds. Per capita, Israel attracts vastly more VC money than any other country (roughly $28,000 per person in 2021, versus $1,000 in the U.S.), reflecting the intense interest of American and global investors in Israeli innovation. This two-way tech flow has concrete payoffs for the U.S.: Israeli-founded companies have created thousands of jobs in America by expanding operations stateside. Many Israeli firms – such as Teva Pharmaceuticals, Amdocs, Netafim, and BrightSource Energy – have U.S. offices or factories, collectively employing tens of thousands of Americans. For example, Israeli companies directly provide about 27,000 jobs in the U.S. as of a few years ago. In Massachusetts alone, Israeli-founded businesses generated 9,000 jobs (plus 27,000 indirect jobs) for the local economy. There’s also substantial venture capital and corporate investment flowing from Israel into the U.S. and vice versa. In 2022, the total stock of U.S. foreign direct investment in Israel reached $42.5 billion, and bilateral trade has grown dramatically since the 1985 free trade pact. Today, annual U.S.-Israel trade exceeds $35–47 billion (goods and services combined), making Israel one of America’s top 25 trading partners. All these economic linkages mean the U.S. gains financially from Israel’s success: whether through profitable arms exports, returns on investment in Israeli startups, or jobs created by Israeli business activity in America. The alliance isn’t just about aid flowing one way – it’s also about commerce, innovation, and wealth generation flowing both ways.
uschamber.com inc.com jns.org
Influence of Political Lobbying
Domestic politics also plays a pivotal role in sustaining U.S. support for Israel. Pro-Israel lobbying groups, most notably the American Israel Public Affairs Committee (AIPAC), have been highly effective in shaping U.S. policy and public opinion in favor of Israel. In the most recent U.S. election cycle, pro-Israel lobby groups (including AIPAC, its associated PACs, and others like DMFI and J Street) contributed over $58 million to current members of Congress running for office. According to an analysis by The Guardian, only a handful of federal legislators (33 out of 535) received no pro-Israel donations – meaning the vast majority of U.S. senators and representatives got at least some campaign money from pro-Israel interests. In late 2023, for example, roughly 82% of Congress strongly backed Israel’s actions during a Gaza conflict – a reflection, in part, of the lobby’s success in aligning U.S. lawmakers with a pro-Israel stance.
truthout.org
In the 2024 election cycle, AIPAC’s affiliate political action committees steered over $50 million to support pro-Israel congressional candidates. AIPAC also spent about $3.3 million on direct lobbying of Congress and federal agencies in 2024 alone. These funds are used to advocate policies like continued military aid for Israel and to oppose measures seen as unfriendly to Israel. Lawmakers know that AIPAC closely tracks votes and can rally campaign funds for allies – or against critics. This has helped ensure that U.S. aid to Israel is routinely approved with overwhelming majorities. In summary, political lobbying – spearheaded by AIPAC – has reinforced strategic arguments with political muscle, making support for Israel a durable feature of U.S. policy.
opensecrets.org
Conclusion
The United States’ consistent support for Israel is the product of a confluence of economic, strategic, and political factors. Historically forged in the aftermath of World War II and strengthened through the Cold War, the U.S.-Israel relationship today spans everything from defense to tech innovation. Economically, American backing for Israel comes with tangible returns: billions of U.S. taxpayer dollars loop back into American industries, supporting tens of thousands of jobs and fostering joint technological advances. Militarily, Israel is both a beneficiary of U.S. aid and a contributor to U.S. security – a battle-tested partner that shares intelligence, co-develops weapons, and helps contain common threats. Politically, influential lobbying and deep public sympathies ensure that support for Israel remains a bipartisan norm in Washington, reinforced by campaign contributions and strategic messaging. And strategically, Israel advances U.S. interests by providing a friendly stronghold in the Middle East, bolstering regional stability and deterring adversaries who also imperil American security.
In sum, the U.S. supports Israel not just out of altruism or historical obligation, but because there are clear economic and strategic payoffs. Israel’s defense needs create American jobs and profitable contracts; Israeli innovations enrich U.S. companies and investors; Israel’s diplomacy and military might help keep a tough neighborhood in check in ways that align with U.S. goals. This symbiotic relationship – rooted in shared values and mutual benefits – explains why American leaders consistently reaffirm their “ironclad” commitment to Israel’s security. From providing $3.8 billion a year in aid to embracing Israel as a key partner on global challenges, the United States calculates that the dividends of supporting Israel, in stability and strategic advantage, far exceed the costs. As a result, U.S. backing remains strong decade after decade, driven by a combination of heartfelt alliance and hard-headed interest that makes the U.S.-Israel partnership one of the closest and most enduring in the world.
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