U.S. cuts military aid to Israel by $150 millionBy Mason White 12:16 PM March 8, 2013
|U.S. Capitol building|
By: David Ross
The amount of aid Israel receives from the United States was cut by millions of dollars and in turn will hurt earnings at U.S. defense companies where Israel must spend their aid money, according to press reports in the United States.
Sources in Washington informed Israeli Finance Minister Yuval Steinitz on Thursday morning that the across-the-board spending cuts in the U.S. reduced the military aid to Israel by 5 percent, which means that military aid to Israel will be reduced by $150 million next year.
Moreover, the cuts are expected to have an immediate impact on the income of Israeli companies that supply products and services to the U.S. government, including Israeli military industries, the Israeli high-tech companies and international business companies.
The U.S. budget cuts are expected to damage the Israeli economy and Israeli tax revenue.
Since the aid given to Israel is in the form of a budget to buy equipment from U.S. companies, the cuts will also affect the income of companies in the U.S. and growth of the U.S. economy.