For the second time this month the Biden administration is bypassing Congress to approve an emergency weapons sale to Israel as Israel continues to prosecute its war against Hamas in Gaza under increasing international criticism.

  • @FlowVoid
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    11 months ago

    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):

    Section 42 of the AECA requires the U.S. Government to emphasize procurement in the United States when carrying out provisions under the Act. Accordingly, in order for a DCC to be approved for FMF funding, the defense articles purchased must be (i) manufactured and assembled in the United States, or the defense services purchased must be performed by U.S. manufacturers/suppliers and (ii) purchased from U.S. manufacturers/suppliers

    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.