Should the U.S. Continue to Ally with Israel? Yes!

By Walter E. Block & Oded J.K. Faran

Critics of U.S. aid to Israel frequently portray the relationship as entirely one-sided, questioning what America gains from this alliance. Senator Bernie Sanders recently argued on the Senate floor that “what we are doing today is aiding and abetting the destruction of the Palestinian people”¹, while Al Jazeera claims “the US is no longer the senior partner in the US-Israel relationship”². The Cato Institute goes further, asserting that “Israel Is a Strategic Liability for the United States”³.

These critiques miss the substantial strategic benefits America derives from this partnership. As one Quora discussion on this topic notes, many people genuinely “don’t understand the benefit” of the U.S.-Israel alliance? to the former. Here’s what the data reveals about why this alliance serves U.S. interests.

Military Capabilities and Strategic Value

According to the 2024 Global Firepower Index, Israel ranks as the world’s fourth most powerful military, despite having only 9.5 million citizens?. This ranking is confirmed by the Times of Israel, which reports that “Israel ranks among 10 most powerful countries in annual list; 4th strongest military”?. This places Israel ahead of nations like the United Kingdom, France, and Germany in overall military capability. For context, Russia and China occupy the second and third positions respectively, making them problematic alliance partners for the United States.

Israel’s military effectiveness becomes even more impressive when considered on a per-capita basis. The Israeli Defense Forces maintain approximately 170,000 active personnel and 465,000 reserves, creating one of the world’s highest military participation rates relative to population size, according to the International Institute for Strategic Studies Military Balance 2024?.

Recent conflicts demonstrate this capability. During the 2023-2024 Gaza conflict, Israel has simultaneously engaged multiple adversaries while maintaining operational security and minimizing civilian casualties through precision strikes and advance warnings. Compare this to Russia’s performance in Ukraine, where after nearly three years of warfare against a much smaller military, victory remains elusive despite Russia’s willingness to target civilian infrastructure without warnings of any kind.

Intelligence and Technology Sharing

The intelligence cooperation between the U.S. and Israel provides measurable strategic value. According to the U.S. State Department, collaborative counterterrorism efforts between Israeli intelligence services and their partners in the United States “have successfully thwarted terrorist attacks by ISIS, Hizballah, and other violent extremist groups over the past several years”¹?. These partnerships save American lives and resources that would otherwise be needed for domestic counterterrorism operations.

The U.S.-Israel technology partnership extends far beyond Iron Dome. The two countries collaborate through six joint working groups focused on artificial intelligence, directed energy, counter-drone systems, biotechnology, and hypersonic capabilities¹?. David’s Sling, another missile defense system, represents $1.8 billion in U.S. investment with 50% of production taking place across 20 American states¹?. These partnerships demonstrate how Israeli innovation directly supports American manufacturing and technological advancement.

Israel’s cybersecurity expertise has proven invaluable. Israeli companies like Check Point and CyberArk protect critical American infrastructure, while Israeli intelligence has reportedly disrupted Iranian cyber-attacks against U.S. targets, according to cybersecurity analysis from the Center for Strategic and International Studies?.

Regional Strategic Positioning

Israel serves as America’s most reliable democratic ally in a strategically crucial region. Unlike other Middle Eastern partnerships that depend on authoritarian regimes, the U.S.-Israel relationship is built on shared democratic values and mutual strategic interests.

The recent normalization agreements between Israel and several Arab nations, facilitated by American diplomacy, have created new opportunities for regional stability. The Abraham Accords have generated over $3 billion in bilateral trade between Israel and the UAE alone, according to the Israeli Ministry of Foreign Affairs¹?, creating economic interdependencies that reduces conflict likelihood.

Economic Benefits and Job Creation

The return on American investment in Israeli military aid is substantial and measurable. The U.S. maintains 751 active Foreign Military Sales cases with Israel valued at $39.2 billion, with approximately 75% of U.S. military aid requiring purchases from American defense contractors¹?. This creates a direct economic multiplier effect, supporting manufacturing jobs across dozens of U.S. states.

According to the WINEP research institute, the 650 Israeli technology companies operating in the United States “contribute to technology transfers and the creation of tens of thousands of jobs in the United States”¹?. Israeli partnerships particularly strengthen niche sectors of the American economy like information technology, with benefits that multiply throughout the broader economy. This technological prowess stems partly from what Charles Murray has documented as exceptional intellectual achievement within Jewish populations, particularly in fields directly relevant to national security and innovation¹².

The U.S. has provided Israel with over $130 billion in bilateral assistance since 1948, transforming both the Israeli Defense Forces and “the Israeli military industry and technology sector into one of the largest exporters of military capabilities worldwide”¹?. This creates a unique situation where American investment returns dividends in the form of advanced military technologies and battle-tested innovations.

Cost-Effectiveness Compared to Alternatives

Critics point to the $3.8 billion in annual military aid to Israel as evidence of a one-sided relationship. However, this represents just 0.1% of the U.S. federal budget and 1% of defense spending. The strategic return is exceptional when compared to alternatives: the U.S. maintains military forces across 19 sites in the Middle East, from Bahrain to Syria, at enormous cost²?. Israel serves as a force multiplier, providing regional deterrence and intelligence without requiring American troops or permanent bases.

Furthermore, Israel has never requested American troops for its defense, unlike other allies. American soldiers have never died defending Israeli territory, making this a uniquely cost-effective alliance in terms of human costs.

Historical Precedent for Success

The strategic partnership has delivered concrete results for decades. Israeli intelligence helped locate and eliminate key terrorist leaders, including providing crucial intelligence that led to the elimination of Iranian General Qasem Soleimani in 2020. Israeli medical and agricultural technologies have saved American lives and improved food security, while Israeli water desalination technology is now being implemented in drought-stricken American states.

America’s Smart Investment

The U.S.-Israel alliance represents one of America’s most strategically valuable partnerships. Israel provides military capability, technological innovation, intelligence cooperation, and regional stability in return for American support. Rather than a liability, Israel serves as a force multiplier for American influence in a critical region.

The question isn’t whether America can afford to maintain this alliance, but whether it can afford not to. In an era of rising great power competition with China and Russia, America needs reliable, capable allies. Israel has proven to be exactly that for over seven decades.

Citations:

1. Responsible Statecraft: Bernie Sanders amendments on Israel aid
2. Al Jazeera: “The US is no longer the senior partner in the US-Israel relationship”
3. Cato Institute: “Israel Is a Strategic Liability for the United States”
4. Quora discussion: “How does the U.S. benefit at all from an unwavering alliance with Israel?”
5. Global Firepower Index 2024
6. Times of Israel: “Israel ranks among 10 most powerful countries in annual list; 4th strongest military”
7. International Institute for Strategic Studies Military Balance 2024
8. U.S. Department of Defense on Iron Dome cooperation
9. Center for Strategic and International Studies: Cyber Operations analysis
10. Israeli Ministry of Foreign Affairs
11. Start-Up Nation Central economic data
12. Charles Murray: “Jewish Genius,” Commentary Magazine
13. Congressional Research Service: U.S. Foreign Aid to Israel
14. U.S. State Department Country Reports on Terrorism 2021: Israel
15. Breaking Defense: How Israel’s military is prioritizing dual-use start-ups
16. Army Technology: Technology born from the US and Israel’s special defence relationship
17. U.S. State Department: U.S. Security Cooperation with Israel
18. Wikipedia: Israel–United States relations
19. U.S. Trade.gov: Israel Defense Industry Intro to Foreign Military Financing
20. Brown University Costs of War: U.S. Support for Israel’s Military Operations Since October 7, 2023