If you’ve ever scrolled through your news feed and wondered why the numbers regarding American aid to the Middle East seem to change every single week, you aren't alone. It’s a lot to keep track of. One day you hear about a "standard" agreement, and the next, there’s a massive emergency package hitting the headlines.
So, how much money does us give israel each year exactly?
The short answer used to be a steady $3.8 billion. But lately? That number has skyrocketed due to the conflict that began in October 2023. Between the regular yearly payments and the massive emergency "supplemental" funds, the actual cash flow has reached levels we haven't seen in decades. Honestly, it’s a complicated web of 10-year contracts, "offshore" spending, and emergency air defense refills.
The Base Line: The $38 Billion Handshake
Most people don't realize that the bulk of this money isn't decided year-to-year in a vacuum. It’s actually governed by a massive 10-year contract called a Memorandum of Understanding (MOU).
The current one was signed way back in 2016 during the Obama administration. It covers the years 2019 through 2028. Under this deal, the U.S. committed to giving Israel $38 billion over a decade. If you do the math, that’s where that famous $3.8 billion per year figure comes from.
Here is how that annual $3.8 billion is usually split up:
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- $3.3 billion in Foreign Military Financing (FMF). This is basically a credit line for Israel to buy U.S.-made weapons.
- $500 million specifically for missile defense. This keeps the Iron Dome, David’s Sling, and Arrow systems running.
But here is the kicker: that $3.8 billion is just the "floor." It’s the minimum.
Why the Number Jumped to $21 Billion Recently
The "normal" rules went out the window after October 7, 2023. Since then, the question of how much money does us give israel each year has a much more dramatic answer.
According to reports from the Costs of War Project at Brown University, the U.S. provided at least $17.9 billion in military aid in just the first year following the start of the Gaza war. By late 2025, researchers estimated the total had climbed to over $21.7 billion.
Wait, how did it go from $3.8 billion to nearly $22 billion?
It happened through "supplemental" funding. In April 2024, Congress passed a massive emergency bill that tacked on an extra $14.3 billion. Most of this wasn't just cash; it was money used to replenish the Iron Dome interceptors that were being used daily and to fast-track the delivery of 155mm artillery shells and precision-guided bombs.
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What Most People Get Wrong About This Money
There’s a huge misconception that the U.S. just sends a giant suitcase of cash to Jerusalem. That’s not really how it works.
Basically, about 99% of this aid is "tied" aid. This means Israel is required to spend the vast majority of it right back in the United States. When the U.S. grants $3.3 billion in FMF, that money often goes straight to defense contractors in places like Texas, Missouri, and California.
Lockheed Martin, Boeing, and Raytheon are the ones actually cashing the checks. It’s as much an investment in the U.S. defense industrial base as it is a gift to a foreign ally. In fact, a long-standing rule that allowed Israel to spend about 26% of the aid on its own domestic defense companies (called Off-Shore Procurement) is currently being phased out. By 2028, Israel will have to spend 100% of its U.S. military aid within the United States.
The 2025 and 2026 Outlook
As we move into 2026, the landscape is shifting again. In early 2025, the U.S. State Department notified Congress of another proposed $8 billion arms sale. This includes things like Hellfire missiles and those 500-pound bombs you see in the news.
Furthermore, the Trump administration fast-tracked about $4 billion in aid in March 2025 using emergency authority. We are also seeing a new push for a "20-year deal" that would focus on high-tech research, like the Iron Beam—a laser-based defense system that costs way less per shot than traditional missiles.
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Where the Money Goes (Beyond Bombs)
While the military hardware gets all the attention, there are smaller buckets of money too:
- Anti-Tunneling Tech: Millions are spent annually on joint research to find and destroy underground tunnels.
- Migration Assistance: A small sliver of aid (around $10 million) still goes toward helping resettle Jewish migrants in Israel.
- Loan Guarantees: The U.S. has provided billions in loan guarantees, which allows Israel to borrow money on the international market at much lower interest rates because the U.S. is essentially "cosigning" the loan.
Is This the Largest Aid Package in the World?
Historically, yes. Since World War II, Israel has been the largest cumulative recipient of U.S. foreign assistance. We’re talking about roughly $317 billion (adjusted for inflation) since 1951.
For a few years recently, Ukraine actually overtook Israel in terms of annual assistance due to the Russian invasion. However, with the 2024 supplemental packages and the ongoing 2025-2026 commitments, Israel is once again at the very top of the list.
Actionable Insights: How to Track This Yourself
If you want to keep an eye on these numbers without the political spin, here is how you do it:
- Check the CRS Reports: The Congressional Research Service (CRS) releases a report titled "U.S. Foreign Aid to Israel" almost every year. It is the gold standard for unbiased data.
- Monitor "Letters of Offer and Acceptance": The Defense Security Cooperation Agency (DSCA) publishes notifications every time a major arms sale is approved. This is where you see the "big" numbers before the hardware actually moves.
- Follow the Appropriations Committees: Watch for "Supplemental Appropriations" bills. These are the "extra" payments that happen outside the standard $3.8 billion MOU.
Knowing how much money does us give israel each year requires looking at both the steady, predictable 10-year contracts and the sudden, multi-billion dollar emergency spikes that happen during wartime. In 2026, the trend appears to be moving toward even more integrated military-tech cooperation, potentially leading to a new, even larger agreement as the current one approaches its 2028 expiration.