U.S. Economic Assistance for Israel

U.S. support for Israel's political and economic stability has been expressed through a variety of economic and military aid programs. The Security Supporting Assistance Program, involving a Commodity Import Program (CIP) and cash grants, is the primary economic aid program for Israel. This aid is usually justified for political rather than solely economic reasons. Under CIP, the United States reimburses Israel for commercial and government purchases from U.S. suppliers, excluding purchases for military use or for sale in occupied territories. This eased Israel's balance-of-payments deficits. The cash grant is called untied aid because the funds do not have to be spent on purchases in the United States. Funds are to be spend on nonmilitary commodities in nonoccupied areas.