Let me begin by saying that I believe in foreign aid. I think properly used, foreign aid can be a significant tool in our national security in addition to making the world a generally better place.
We give a significant amount to Israel each year - $3 Billion. It is the largest recipient of US government aid. That equals a little more than 1% of their entire GDP and almost 4% of the government budget. It essentially goes there with no strings attached. A group of legislators have proposed that we raise that amount to about $3.7 Billion and Israel is hoping to see it raised to between $4 & $4.5 Billion.
To put those numbers in context. The population of Israel is roughly the same as either New Jersey or Virginia. New Jersey is the state with the lowest return on its federal tax dollars in the US and actually ends up with roughly a negative $23 Million each year. That is, NJ sends $23 million more to the federal government than comes back to the state. Virgnia is the state with the highest amount of return from the federal government. It receives about $97 million more than it sends in in federal taxes. Look at those numbers for a second and realize that the state with the highest return on its federal tax dollars gets back less than 1/3 of what we sent to Israel this year... and there are obviously strings on much or most of that money. Israel, on the other hand, continues to break international law with the building of settlements. Additionally, 1 of 3 Israeli families receive some kind of government welfare including large numbers of ultra-orthodox Jews who live on state subsidies for religious study. Some studies show that 65% of ultra-orthodox men do not work but instead spend their time being paid by the government to study torah and scripture. The ultra-orthodox are also the fastest growing Jewish segment of the Israeli population.
Some economists are arguing that the Israeli economy will collapse under the weight of its welfare system. It is no wonder that they are hoping for a significant increase in our aid... On top of those who are paid to not work, Israeli citizens receive other benefits that US citizens do not. All universities are subsidized by the state and students pay only a small percentage of the actual costs. Health insurance is universal and looks to me roughly like Medicare for All. One could easily argue that we subsidize all of these benefits.
So what do I think we should do? I think that aid should be tied to real actions that reflect our values. Should we dictate to Israel how they should live? No. But neither should we subsidize their choices when they conflict with our own. Here are two examples. We refuse welfare to criminals in the US... tie our aid to the dismantling of settlements and to better treatment of the Palestinians. We hold as one of our deepest values separation of church and state... tie some aid to the removal of special perks for ultra-orthodox sects.