US Aid to Israel and the Palestinians "U.S. Military Aid and the Israel/Palestine Conflict The U.S. is providing Israel with at least $8.2 million each day* in military aid and is giving the Palestinians $0** in military aid during Fiscal Year 2011. Since the October War in 1973, Washington has provided Israel with a level of support dwarfing the amounts provided to any other state. It has been the largest annual recipient of direct U.S. economic and military assistance since 1976 and the largest total recipient since World War ll. Total direct U.S. aid to Israel amounts to well over $140 billion in 2003 dollars. Israel receives about $3 billion in direct foreign assistance each year, which is roughly one-fifth of America's entire foreign aid budget. In per capita terms, the United States gives each Israeli a direct subsidy worth about $500 per year. This largesse is especially striking when one realizes that Israel is now a wealthy industrial state with a per capita income roughly equal to South Korea or Spain. Israel would have to stop the violence and talk seriously about peace if the usa stopped financing their landgrab i Palestine.