Israel: Largely Self-Funded, High-Return US Strategic Asset

Ambassador (ret.) Yoram Ettinger, “Second Thought: a US-Israel Initiative”
July 31, 2025

Please clique for audio edition

*Is Israel a recipient of US foreign aid?  Or, is Israel a unique force and dollar-multiplier for the US taxpayer, the only largely self-funded, self-manned, low/no-risk, high-return, democratic, stable and unconditional ally of the US, in the face of mutual adversity (Shiite and Sunni Islamic terrorism, China and Russia), and in the pursuit of mutual challenges (e.g., advancing the commercial and defense technological edge)?

*Israel is the only pro-active US ally, which is required by its neighborhood to constantly flex effective muscles against the anti-US Islamic terrorism, while challenging and constraining Russia’s and China’s aspirations in the Middle East.

*A realistic cost-benefit assessment of the annual of $3.8bn US investment in Israel – not “foreign aid” – should be assessed against the backdrop of the annual cost-benefit of overseas US military bases and the 2026 $1 Trillion proposed defense budget (which includes items that are higher-risk than the low/no-risk investment in Israel):

<According to a July 10, 2024 report by the US Congressional Research Service (CRS), “the US has at least 128 overseas bases in at least 51 countries….  The Department of Defense (DOD) provided an estimate of $31.7 billion to support overseas operations in 2023…. The figures reported by DOD may not include all of the non-military construction spending associated with overseas basing… They may exclude costs related to contingency operations, rotational deployments or training exercises involving units ordinarily based in the United States. Independent researchers have also provided alternative estimates for the total cost of U.S. overseas basing. A 2021 study by the [conservative/isolationist] Quincy Institute estimated the total cost to be $55 billion annually….”

<The Northampton, MA-based liberal National Priorities Project and the progressive Institute for Policy Studies claim that the 2024 cost of maintaining U.S. military bases overseas is estimated to be around $80 billion annually, which includes the direct costs of maintaining the bases themselves and the costs associated with personnel, equipment, and operations.

<According to the CRS report (ibid), “As of March 2024, approximately 81,000 active-duty servicemembers were permanently assigned to overseas bases in the Indo-Pacific…. in Japan (54,774 – $5.7bn; $2bn assumed by Japan)andSouth Korea(28,500 – $4.7bn; $1bn)…. 31 persistent bases and 19 other military sites in Europe…. approximately 67,200 active-duty servicemembers…. in Germany (35,112 – $7.3bn; $1.2bn), Italy (12,441 – $2.8bn; $0.5bn) and the UK (9,421 – $2.2bn; $0.8bn)…. Thousands of additional servicemembers are present in Europe on rotational deployments or other temporary assignments. Approximately 80,000 are assigned or deployed to NATO…. CRS identified eight persistent bases and 11 other military sites in the Middle East…. in Bahrain(3,479 – $1-2bn; cost-sharing, rent-free)…. and Qatar (8,000 – $2.5bn; $1.8bn)…. Thousands of additional servicemembers were present on rotational deployments or other temporary assignments…. U.S. bases in Iraq, Syria, and Jordan have also been subjected to intermittent drone and missile attacks…. Approximately 1,150 were permanently assigned in Africa…. Approximately 1,650 in Latin America and the Caribbean….”

The largely self-funded, battle-tested, high-return, reliable Israel 

*Since 1967, Israel has been the most cost-effective, self-funded, militarily and commercially effective US overseas beachhead/base, manned by Israel’s own battle-proven manpower, not US troops.

*Israel’s critical, pro-active and unique contribution to the US power projection was demonstrated by the June 2025 Israel Air Force offensive on Iran, which obliterated Iran’s Air Force and ground to air defense, and eliminated key Iranian national security leaders, paving the road for the unchallenged US bombing of three Iranian nuclear installations.

*Israel has extended the US’ strategic hand, enhancing US operational flexibility in the Middle East and other parts of Africa and Asia, bolstering the stability of all pro-US Arab regimes, which have the machetes of Iran’s Ayatollah regime and the Muslim Brotherhood at their throats. Israel has monitored, constrained and deterred theUS’ global and regional rivals and enemies, while upgrading US defense and commercial technologies. Israel has shared with the US its unique battle experience and game-changing innovations.  The US Air Force, Navy, Ground Forces (e.g., Special Operations, urban warfare), Intelligence and counter-terrorism, Missile Defense, electronic warfare and cyber security have also benefited from Israel’sairspace, ports, human and signal intelligence, logistics and training resources.

*Israel has contributed to the US’ power-projection more than any other US ally.

 *Bolstering the US’ global power-projection has been more valuable to the US than Israel’s mega-billion-dollar contribution to the US economy and defense as the battle-tested laboratory (e.g., saving 10-20 years of the F-35 Research and Development cost; total R & D cost amounts to $55bn) and the elite showroom, which has demonstrated the advantage of the US defense and aerospace industries. Enhancing the US’ power projection has also been more critical than Israel’s role as the leading platform of battle tactics formulation for the US Armed Forces; the major source of intelligence for the US (equal to 5 CIAs); and, the leading innovation center for 250 US high tech giants in the areas of AI, cyber, communications, medicine, health, agriculture, irrigation, software technologies, homeland security, etc.

*Israel’s capabilities and own power projection have provided the U.S. a strategic launch point – without a permanent U.S. base – in a most critical area between the Mediterranean, the Red Sea, the Indian Ocean and the Persian Gulf. This area is the leading epicenter of anti-US global Islamic terrorism, a source of 48% of global oil reserves and a critical intersection of commercial sea lanes. Israel’s geo-strategic location and battle-proven capabilities have spared the US the need to increase its own direct presence, which would have required an annual cost of $15bn-$20bn of manufacturing, deploying, operating and maintaining additional aircraft carriers, accompanied by 5-10 ground divisions.

*US-Israel cooperation has evolved into a unique, mutually-beneficial, two-way-street, win-win relationship, responding to mutual threats and joint challenges, transcending occasional disagreements between the two Administrations.  Israel has been transformed from a  net-national security and economic consumer to a net-national security and economic producer, generating substantial, military and commercial dividends to the US, which exceed the highly appreciated $3.8 BN US annual investment in Israel.

Support Appreciated