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New U.S.-Israel Security Deal Edges Congress Out of Aid Appropriations

Israeli Prime Minister Benjamin Netanyahu / AP
September 15, 2016

The Israeli government agreed to a provision under the new 10-year U.S.-Israel security aid agreement that requires the Jewish state to return any money appropriated by Congress that exceeds levels set by President Obama.

The unprecedented agreement effectively blocks Congress from increasing U.S. aid to Israel over the next two years, the Washington Post reported.

The White House signed a new Memorandum of Understanding with Israel on Wednesday that increases U.S.-Israel security aid from $3.1 billion a year to $3.3 billion annually, beginning in 2018. The deal also includes an additional $500 million for annual missile defense funding, bringing the total to $3.8 billion.

The aid package falls short of Congress’ plan to give Israel $3.4 billion, plus $600 million for missile defense starting in 2017.

Obama refused to sign the aid deal until Congress reduced its funding to level to the president’s proposed levels. When Congress refused, administration officials persuaded Israel to halt lobbying efforts for additional money.

Still, the White House pursued an agreement mandating that the Israeli government return any money allocated by Congress above the MOU levels for 2017 and 2018.

"As part of this deal, Israel has signed a letter to this administration saying they will not accept the money above the MOU amount and they would return it," Sen. Lindsey Graham (R., S.C.) told the Post. "I said, ‘I think y’all have lost your mind. You’ve been trying to get a foreign government to help you take over the appropriations process.’"

Administration officials said the Israeli government "volunteered" to return any money that exceeds the deal’s limits. Graham said the White House pressured Israeli officials to write a letter agreeing to the provision.

"It is a level of antagonism against Israel that I can’t understand," he said.

A senior administration official said that changing funding levels under the MOU threatens "the integrity" of the agreement and undermines confidence in "future appropriations."

"Israel understands that, once the precedent of changes to MOU levels is established, it would create uncertainty that is undesirable for both sides," the official told the Post. "Ultimately, the United States fully agrees with Israel on the need to respect the integrity of the MOU and avoid changing the appropriation level in any given year. It is for this reason that we also oppose any appropriation greater or less than those specified in the MOU."

Graham noted that Congress has regularly increased foreign aid above MOU levels and charged that the White overstepped its executive authorities.

House Speaker Paul Ryan’s (R., Wis.) office released a statement Wednesday reiterating Congress’ right to appropriate security aid to foreign nations regardless of MOU levels.

"Congress was not consulted during the negotiation of the MOU," said Ryan’s press secretary AshLee Strong. "We will continue to appropriate the funds that we determine are necessary to meet the needs of our shared security interests in the Middle East."