From the Summary: "This report provides an overview of U.S. foreign assistance to Israel. It includes a review of past aid programs, data on annual assistance figures, and an analysis of current issues. The report will be updated annually to reflect developments over the previous year. Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. From 1976-2004, Israel was the largest annual recipient of U.S. foreign assistance, having recently been supplanted by Iraq. Since 1985, the United States has provided nearly $3 billion in grants annually to Israel. Strong congressional support for Israel has resulted in Israel's receiving benefits that may not be available to other countries. For example, Israel can use U.S. military assistance both for research and development in the United States and for military purchases from Israeli manufacturers. In addition, all U.S. foreign assistance earmarked for Israel is delivered in the first 30 days of the fiscal year. Most other recipients normally receive their aid in staggered installments. The United States gives all Economic Support Funds (ESF) directly to the government of Israel as a cash transfer grant rather than allocating funds for specific development projects. The Administration requested $120 million in economic aid and $2.34 billion in military assistance for Israel in fiscal year 2007. With continued conflict on Israel's borders, the 110th Congress may address issues concerning U.S. foreign assistance to Israel. According to various Israeli media sources, the Israeli government may request that the United States increase the annual percentage of U.S. military aid used for weapons procurement within Israel. Additional funding also may be sought for joint U.S.-Israeli anti-missile and rocket systems to counter Hezbollah and Hamas rockets attacks against Israeli cities."
CRS Report for Congress, RL33222