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Market Intelligence

US Military Aid to Israel: $174 Billion in Federal Spending, Fully Mapped

The United States has provided more foreign aid to Israel than any country since World War II. Here is every dollar -- the $3.8B annual baseline, the $21.7B wartime surge, every arms sale, and what it costs you.

Fed-Spend Research Team•February 16, 2026•14 min read

$174 Billion and Counting

The United States has provided $174 billion in cumulative aid to Israel since 1948 -- more than any other country in the post-WWII era. Adjusted for inflation, that number exceeds $310 billion.

In 2025 alone, the Defense Security Cooperation Agency (DSCA) notified Congress of over $37.6 billion in arms sales to Israel. The annual baseline commitment under the current Memorandum of Understanding is $3.8 billion per year through 2028.

After October 7, 2023, wartime military aid surged to $21.7 billion over two years -- representing roughly 14% of the entire cumulative aid total since 1948, compressed into 24 months.

This is the complete accounting. Every major contract. Every agency. Every dollar figure available in public records.


The Annual Baseline: $3.8 Billion Per Year

On September 14, 2016, the Obama administration signed a 10-year Memorandum of Understanding (MOU) with Israel -- the largest bilateral military aid commitment in US history.

MOU Details (FY2019 through FY2028):

  • Foreign Military Financing (FMF) grants: $3.3 billion/year
  • Missile defense cooperation: $500 million/year
  • **Total: $38 billion over 10 years**
  • FY2025 Regular Appropriations

    | Line Item | Amount |
    |-----------|--------|
    | FMF base level | $3,300,000,000 |
    | Offshore procurement allowance | $450,300,000 |
    | Missile defense cooperation | $500,000,000 |
    | Anti-tunneling programs | $47,500,000 |
    | Counter-unmanned aerial systems | $55,000,000 |
    | Emerging technologies cooperation | $20,000,000 |
    | **FY2025 Total** | **$4,372,800,000** |

    This is the "peacetime" number. What happened after October 7, 2023 was not peacetime.


    The Wartime Surge: $21.7 Billion in Two Years

    According to Brown University's Costs of War Project (October 2025):

    | Period | Military Aid |
    |--------|-------------|
    | Year 1 (Oct 7, 2023 -- Sept 30, 2024) | $17,900,000,000 |
    | Year 2 (Oct 1, 2024 -- Sept 30, 2025) | $3,800,000,000 |
    | **Two-year total** | **$21,700,000,000** |

    Including US military operations against Houthi forces in Yemen (directly related to the Israel-Hamas conflict), total US spending reaches $31.4 -- $33.8 billion.

    Additionally, at least 100 separate arms sales were approved below the Congressional notification threshold ($25M for major defense equipment, $100M for other items), reported by the Washington Post in March 2024. These are not included in the $21.7 billion figure.


    The $26.4 Billion Supplemental Package (April 2024)

    Congress passed the Israel Security Supplemental Appropriations Act as part of a $95.3 billion national security package.

    How Congress Voted

    House (April 20, 2024): 366-58

  • Republicans: 193 Yes / 21 No
  • Democrats: 173 Yes / 37 No
  • Senate (April 23, 2024): 79-18

  • Democrats: 46 Yes / 2 No
  • Republicans: 31 Yes / 15 No
  • Not voting: Rand Paul, Tim Scott, Tommy Tuberville
  • Where the $26.4 Billion Goes

    Title I -- Department of Defense ($13 billion):

  • Replenish US weapons stocks transferred to Israel: $4.4 billion
  • Iron Dome and David's Sling interceptors: $4.0 billion
  • Iron Beam laser defense system: $1.2 billion
  • US military operations in the region (CENTCOM): $2.4 billion
  • Artillery and munitions production expansion: $1.0 billion
  • Title II -- Department of Homeland Security ($400 million):

  • FEMA Nonprofit Security Grant Program (synagogues, community centers)
  • Title III -- State Department ($12.9 billion):

  • Humanitarian assistance (Gaza and affected populations): $9.15 billion
  • Foreign Military Financing (Israel and regional partners): $3.5 billion
  • State Department operations: $150 million
  • Inspector General oversight: $7 million

  • Every Major Arms Sale (2024-2026)

    Here is every DSCA-notified arms sale to Israel since October 2023:

    | Date | Description | Amount | Contractor |
    |------|-------------|--------|-----------|
    | Dec 2023 | 155mm artillery ammunition | $147,500,000 | General Dynamics |
    | Aug 2024 | F-15IA aircraft (up to 50 new + 25 upgrades) | $18,820,000,000 | Boeing |
    | Feb 2025 | GPS-guided bombs (JDAM, SDB, MK-82) | $6,750,000,000 | Boeing |
    | Feb 2025 | AGM-114 Hellfire missiles (3,000) | $660,000,000 | RTX/Raytheon |
    | Feb 2025 | 155mm artillery shells (10,000) | $312,500,000 | General Dynamics |
    | Feb 2025 | JDAMs/SDBs (commercial sale) | $688,000,000 | Boeing |
    | Feb 2025 | MK-84 bomb bodies + I-2000 warheads (35,529+) | $2,040,000,000 | General Dynamics Ordnance |
    | Feb 2025 | JDAM kits for MK-83 | $675,700,000 | Boeing |
    | Feb 2025 | Caterpillar D9 armored bulldozers | $295,000,000 | Caterpillar |
    | Apr 2025 | Eitan powerpack engines | $180,000,000 | -- |
    | Jun 2025 | Additional JDAM guidance kits | $510,000,000 | Boeing |
    | Nov 2025 | Tamir interceptors for Iron Dome (R2S JV) | $1,250,000,000 | RTX/Rafael JV |
    | Jan 2026 | AH-64E Apache helicopters (30) | $3,800,000,000 | Boeing |
    | Jan 2026 | Joint Light Tactical Vehicles (3,250) | $1,980,000,000 | AM General |
    | Jan 2026 | Namer APC power packs | $740,000,000 | Rolls-Royce |
    | **Total DSCA notifications** | | **~$37,600,000,000** | |

    The single largest item: Boeing's $18.82 billion F-15IA contract for up to 50 new fighter jets plus upgrades to 25 existing aircraft. Boeing's F-15IA contract ceiling alone ($8.58 billion for 25 jets, signed December 2025) is the largest individual Israel-related defense contract in recent history.


    Which US Companies Benefit Most

    Under the MOU, Israel must spend its FMF grants on American-made defense products -- phasing from 75% in FY2019 to 100% by FY2027. The money never physically leaves the United States. It transfers from State Department accounts directly to US defense contractor accounts.

    Boeing — The Biggest Beneficiary

  • F-15IA program: $5.2 -- $18.8 billion
  • GPS-guided bombs (JDAM kits): $6.75 billion + $675.7M + $510M
  • Apache helicopters: $3.8 billion
  • Arrow missile defense (with IAI): billions cumulative
  • **Estimated Israel-related revenue (2024-2026): $25+ billion in contract ceilings**
  • RTX Corporation (Raytheon)

  • Iron Dome co-production (R2S joint venture): $1.25 billion (first production contract)
  • Hellfire missiles: $660 million
  • David's Sling co-development: $1.99 billion cumulative
  • **R2S production facility: East Camden, Arkansas**
  • General Dynamics

  • 155mm artillery shells: $312.5M + $147.5M
  • Bomb bodies and warheads: $2.04 billion
  • Trophy Active Protection System (prime): $280 million
  • Lockheed Martin

  • F-35I "Adir" program: ~$7.5 billion+ (75 aircraft total)
  • Israel was the first international F-35 operator (December 2017) and first to use it in combat (May 2018)
  • Others

  • AM General (JLTVs): $1.98 billion
  • Rolls-Royce Solutions America (Namer APCs): $740 million
  • Caterpillar (D9 bulldozers): $295 million
  • The "Buy American" provision means $3.3+ billion per year flows directly to US defense manufacturers, supporting jobs across all 50 states. IAI alone maintains 800+ American suppliers across 44 states. The F-35 program involves 1,800+ suppliers in 45 states.


    Joint Defense Programs

    Iron Dome

    | Detail | |
    |--------|-|
    | Developer | Rafael (Israel) |
    | US partner | RTX/Raytheon via R2S joint venture |
    | US production | East Camden, Arkansas |
    | Combat success rate | >95% since 2011 |
    | Cumulative US funding (FY2011-2023) | ~$2.9 billion |
    | 2024 supplemental | $4 billion (shared with David's Sling) |

    David's Sling

    | Detail | |
    |--------|-|
    | Developers | Rafael + Raytheon |
    | Function | Medium-range missile defense (40-300 km) |
    | US production share | ~50% of components across ~30 states |
    | Cumulative US funding (FY2006-2020) | $1.99 billion |

    Arrow 2 and Arrow 3

    | Detail | |
    |--------|-|
    | Developers | Israel Aerospace Industries + Boeing |
    | Arrow 3 function | Exoatmospheric ballistic missile interception (up to 2,400 km) |
    | US oversight | Missile Defense Agency |
    | Annual US funding | $30M (2008) scaling to $310M (2018) |
    | Germany-Israel Arrow deal | $6.7 billion (Dec 2025) -- Israel's largest defense export |

    Iron Beam (Under Development)

    | Detail | |
    |--------|-|
    | Developer | Rafael |
    | Function | Ground-based laser defense |
    | 2024 supplemental funding | $1.2 billion |
    | Significance | Could reduce cost-per-intercept from $50K+ to pennies |

    Oversight and Accountability

    DoD Inspector General Audit (December 2025)

    The DoD IG published DODIG-2026-033: "Audit of DoD's Enhanced End-Use Monitoring in Israel."

    Finding: The Pentagon "only partially complied" with end-use monitoring requirements for weapons sent to Israel after October 2023. Full compliance existed before the wartime surge began.

    Why it matters: This means the US government could not fully account for the disposition of sensitive defense articles -- missiles, night vision devices, drones -- transferred under at least $13.4 billion in military aid since October 2023.

    NSM-20 (International Humanitarian Law Compliance)

    Biden's National Security Memorandum-20 (February 2024): Required weapons recipients to provide written assurances of compliance with international humanitarian law.

    State Department assessment (May 2024): Acknowledged Israel's use of US weapons "likely violated international law" but added "evidence is incomplete." Weapons transfers continued.

    Independent Task Force findings: Reviewed thousands of incident reports and found "compelling and credible evidence of violations of international humanitarian law," including:

  • Recurrent attacks with foreseeable disproportionate harm to civilians
  • Wide-area attacks without prior warnings in densely populated areas
  • Direct attacks on civilians and protected persons
  • Trump rescission (February 24, 2025): Eliminated NSM-20 entirely. Removed the IHL assurance requirement and Congressional reporting obligation.

    Below-Threshold Sales

    At least 100 individual arms sales since October 2023 fell below Congressional notification thresholds. No public disclosure of individual transaction details. No Congressional oversight.


    What It Costs You

    Per-Taxpayer Calculations (Based on 142.6 Million Tax Filers)

    | Measure | Per Taxpayer |
    |---------|-------------|
    | Annual MOU baseline ($3.8B/year) | **$26.65** |
    | FY2025 including all line items ($4.37B) | **$30.66** |
    | Post-Oct 7 military aid, 2 years ($21.7B) | **$152.17** |
    | Including Yemen operations ($31.4-33.8B) | **$219.85 -- $236.82** |
    | Cumulative since 1948, nominal ($174B) | **$1,220.20** |
    | Cumulative since 1948, inflation-adjusted ($310B+) | **$2,173.91** |

    Share of Federal Budget

    | Measure | % |
    |---------|---|
    | Annual MOU ($3.8B) as % of total federal budget | 0.056% |
    | FY2024 wartime surge as % of total budget | ~0.27% |
    | Annual MOU as % of defense budget | 0.43% |
    | FY2024 wartime surge as % of defense budget | ~2.0% |

    State-Level Anti-BDS Laws

    38 states have enacted laws or executive orders prohibiting state agencies from contracting with businesses that boycott Israel.

    These laws require contractors to sign written certifications that they do not participate in boycotts of Israel as a condition of doing business with state and local governments. Typical threshold: contracts above $100,000.

    Constitutional challenges: Federal courts in Kansas, Arizona, and Texas blocked enforcement on First Amendment grounds. The 8th Circuit upheld Arkansas's law. No Supreme Court ruling exists as of February 2026.

    Federal legislation pending: H.R. 3050 ("Countering Hate Against Israel by Federal Contractors Act") would extend the prohibition to federal contracting.


    The Future: MOU Negotiations (2029-2038)

    The current $38 billion MOU expires September 30, 2028. Negotiations for a successor agreement are underway.

    Netanyahu's position (January 2026): Wants to "taper off" US military aid to zero over the next decade, replacing direct grants with expanded joint defense R&D and co-production programs.

    The shift: From cash transfers to technology partnerships. Israel's defense industry has matured to the point where co-development (like Arrow, David's Sling, and Iron Dome) may replace direct FMF grants.

    The reality: Whether aid decreases, the industrial relationship -- US defense contractors building systems for Israel, Israeli companies building components for US systems -- is deeply embedded in both economies.


    The Data Is Public

    Every non-classified federal obligation to Israel is tracked in public databases:

  • **USAspending.gov** -- Obligation-level spending data
  • **DSCA.mil** -- Major arms sale notifications
  • **FPDS.gov** -- Detailed contract actions and modifications
  • **SAM.gov** -- Active solicitations and awards
  • **Congressional Research Service** -- RL33222 (comprehensive aid history, updated regularly)
  • **Fed-Spend** -- Search across all federal databases simultaneously
  • The spending exists in the public record. The contracts are documented. The question, as always, is whether enough people look.

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