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Our annual military aid is in the form of free equipment, not free cash. So if they want more equipment, as in this case, then they have to spend their own money.
I disagree. I believe it is given as liquid currency and Israel is free to spend it as it sees fit. While it is intended to aid their military and is usually spent on U.S. arms, purchasing exclusively from the U.S. is not a requirement of the current agreement.
Here is a BBC article from 2021 that breaks down some of the ways Israel chooses to spend the funds we send them.
Notable from the article:
No, it's not liquid currency.
Military aid to Israel funds two programs. The smaller part buys parts for their Iron Dome system, as sort of an ongoing field test. The larger part goes through the Foreign Military Financing program.
You can find the details of the FMF here, but basically Israel orders equipment and the US pays for it (up to a certain dollar limit of course). The equipment must be purchased from US contractors (though some exceptions apply):
It's kind of like health insurance. They don't send you money, but they pay your bill (or maybe not if it's out-of-network).
The goal is twofold: support US defense contractors and support American allies. And there is a potential ulterior motive: recipient countries are more likely to buy additional equipment from US contractors.
Excellent data. Thank you.