The US-Israel relationship is based on shared values and interests, and offers direct economic benefits to the American people.
U.S. aid to Israel creates jobs in America
By 2028, Israel is required to spend all of the military aid it receives from the U.S. (roughly $3.8 billion) on products manufactured across America.[1]
This spending directly supports over 20,000 jobs and indirectly supports thousands of other jobs according to estimates[2].
More than 1,000 companies in 48 states, the District of Columbia, and Puerto Rico have signed contracts worth billions of dollars through the U.S. aid to Israel program.[3]
Israeli investments create jobs in America
Since 1985, when the US-Israeli free trade agreement was signed, trade has grown to over $47 billion dollars annually. Israel has become America’s 24rd largest trading partner.[4]
Many Israeli companies, including Given Imaging, Amdocs, Netafim, and BrightSource, have opened offices and directly employ 27,000 people in the United States.[5]
In 2020, Israeli Foreign Owned Enterprises in California provided 6,248 jobs through 140 firms, paying $615 million in wages.[6]
Israeli-founded businesses generated about 9,000 jobs in Massachusetts alone, and indirectly support an additional 27,000.[7]
U.S.-Israel cooperation creates jobs in America
The Binational Science Foundation (BSF), Binational Industrial Research and Development Foundation (BIRD), and Binational Agricultural Research and Development Foundation (BARD) are joint projects of the U.S. and Israel. Their goal is to stimulate, promote, and support cooperation between American and Israeli businesses and scientists.[8]
BARD generated a $16.5 return for every $1 invested, translating to $2.7 billion to the US economy, $500 million to Israel’s, and another $13.3 billion globally.[9]
These organizations have helped create anywhere between 18,000 and 200,000 jobs in the U.S. depending on the estimates used.[10]
Israel helps train American innovators and job creators.
Cornell University and Israel’s Technion have joined forces to create Cornell Tech in New York City. This new university is training the next generation of American leaders in technology and innovation.[11]
- [1] FACT SHEET: Memorandum of Understanding Reached with Israel, https://www.whitehouse.gov/the-press-office/2016/09/14/fact-sheet-memorandum-understanding-reached-israel
- [2] Dave Schechter, “Aid to Israel, and the bang for those bucks,” CNN, January 31, 2009, at http://ac360.blogs.cnn.com/2009/01/31/aid-to-israel-and-the-bang-for-those-bucks
- [3] Mitchell Bard, “Myths & Facts Online: U.S. Middle East Policy,” Jewish Virtual Library, n.d., at www.jewishvirtuallibrary.org/jsource/myths3/MFUSpolicy.html#10
- [4] Epstein, J. (2020, October 27). Israel, US relations blossom as nations mark 35 years since Free Trade accord. The Times of Israel. Retrieved September 30, 2021, from https://www.timesofisrael.com/israel-us-relations-blossom-as-nations-mark-35-years-since-free-trade-accord/.
- [5] SelectUSA. (2020). Foreign Direct Investment: Israel. November 2020. Washington DC, Maryland; Select USA. https://www.selectusa.gov/servlet/servlet.FileDownload?file=015t00000003DBm&fbclid=IwAR1H0o8bWfd01c1kM5ucyq2ql1bvDIwWXEh6W7hTEhz_k6PVEFHjAfFkKIY
- [6] World Trade Center, Los Angeles. (2021). (rep.). FOREIGN DIRECT INVESTMENT IN CALIFORNIA, 2021. Los Angeles, CA: Los Angeles Business Journal, https://wtcla.s3.amazonaws.com/resources/documents/RfkOU3c9kmzAIXYL.pdf
- [7] New England-Israel Business Council. (2016, August 14). Boston-Israel study. NEIBC. Retrieved September 30, 2021, from https://neibc.org/boston-israel-study/.
- [8] United States-Israel Binational Science Foundation, “About,” n.d., at
- www.bsf.org.il/BSFPublic/DefaultPage1.aspx?PageId=11&innerTextID=11; BIRD, “What is BIRD,” n.d., at www.birdf.com/?CategoryID=317&ArticleID=374; United States-Israel Binational Agricultural Research and Development Fund, “Mission,” n.d., at www.bard-isus.com/local.aspx?lfidl=2
- [9] Solomon, S. (2020, November 16). 20 agriculture projects of US-Israel fund added $3 billion to economies – report. The Times of Israel. Retrieved September 30, 2021, from https://www.timesofisrael.com/20-agriculture-projects-of-us-israel-fund-added-3-billion-to-economies-report/.
- [10] Economic Strategy Institute, “A Certain Future for the U.S.-Israel Technology Partnership,” December 2011, at www.birdf.com/_Uploads/dbsAttachedFiles/BinationalFoundationsReportPrestowitzDec2011.pdf
- [11] Cornell University, “Cornell Now 2015,” n.d., at http://now.cornell.edu/nyctech
