Billions in Taxpayer Money to Israel: How the NYT Hides Unsavory Facts from View

Billions in Taxpayer Money to Israel: How the NYT Hides Unsavory Facts from View

By Barbara Erickson | TimesWarp | September 15, 2016

Thanks to American taxpayers, Israel has been receiving $3.1 billion in direct military aid each year, and under a new agreement signed this week that amount is set to rise to $3.8 annually. This is a hefty package and major news, but The New York Times has been oddly reticent about it, running a story on page 6 of the print edition and without fanfare online.

This is not a new phenomenon at the Times. Over the past year, as the United States and Israel have negotiated a new 10-year memorandum of understanding concerning military aid, readers have seen few references to the topic, and even with the signing of a new agreement this week, the newspaper maintains its minimalist approach.

The article by Peter Baker and Julie Hirschfeld Davis gives few details of the deal, instead proving a great deal of space to the state of U.S.-Israeli relations. The story reports that the present aid package (signed in 2007 and due to expire next year) amounts to “about $3 billion a year” with additional funds of up to $500 million a year authorized by Congress for missile defense.

We also learn that Israel made some concessions in negotiations, that this week’s deal is “the largest of its kind” and that Israel receives more U.S. money than any other country. But much is missing.

In fact, Israel gets more than half of all U.S. military aid ($3.1 billion out of a total of $5.9 billion), and Israel together with Egypt receives 75 percent of American foreign military assistance. Since the large allotment for Egypt is aimed at maintaining a non-threatening neighbor on Israel’s border, this could also be counted as indirect aid to Israel.

In fact Israel has been receiving well over $3.1 billion. By a conservative estimate, the United States has been giving the country $3.7 billion in direct aid annually with funds for immigrants to Israel, grants for American hospitals and schools, “joint defense projects” with the Department of Defense, and an early disbursement of aid.

The last item on that list refers to a special arrangement: In contrast to other recipients, Israel receives all its funds from the United States in one lump sum within the first month of the fiscal year. The money is then transferred to a Federal Reserve Bank interest-bearing account, allowing Israel to accrue some $15 million annually in interest.

Then there are other perks, such as loan guarantees, “cash flow financing,” and the right to purchase arms directly from companies rather than going through a Department of Defense review.

In addition, donations sent by Jewish and Christian groups to support settlements are tax-exempt. So every dollar donated to support the colonization of Palestinian land means the loss of at least 20 cents that should go into the U.S. treasury. This is an indirect subsidy to Israel that has cost American taxpayers an incalculable amount, at least some tens of millions of dollars.

The Times, however, has shown no interest in revealing the full extent of aid or of pursuing the arguments against pouring so much money into Israel. This week’s story mentions criticism of the aid agreement not until about three quarters into the text, and then it is reduced to three bland paragraphs with quotes from the representative of an anti-occupation organization.

In fact, the opposition goes well beyond such groups. A member of Congress, Rep. Betty McCollum (D-MN), has asked the State Department to investigate Israeli military units for possible violations of the Leahy Act, which prohibits the dispersal of U.S. funds to groups that violate human rights with impunity.

In 2012, 15 leaders of major religious organizations wrote to Congress asking that military aid be made contingent on compliance with American law. Other groups have sponsored billboards in various areas of the country highlighting the incredible largesse the United States provides for Israel.

Moreover, a poll of Americans taken in 2014 revealed that 60 percent believed the United States gives too much aid to Israel, and of that group 34 percent said it received “much too much.” The percentage claiming that our aid package was excessive was even higher (65 percent) among Americans under 34.

Other commentators have noted that Israel is a wealthy country, with universal health care, and is less in need of help than American citizens who struggle to fund their schools, pay for prescription drugs and meet medical fees.

None of this debate appears in the Times, which seems determined to keep the subject well below the radar. Thus we find a lightweight story on the inside pages of the print edition, well behind a more prominent one about Syrian and Israeli skirmishes in the Golan Heights, and an uninformative one-minute video of the signing ceremony on the Middle East page.

Times readers are to remain ignorant of the full, unsavory story about U.S. aid to Israel. If the facts were fully reported, this might inspire unwelcome questions and pushback. Better to say as little as possible and allow Israel to keep collecting its yearly billions from American taxpayers.

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