Israel has a population of approximately 7.8 million, or a million fewer than the state of New Jersey. It is among the world's most affluent nations, with a per capita income similar to that of the European Union. Israel's unemployment rate of 5.8% is better than America's 7.3%, and Israel's net trade, earnings, and payments is ranked 30th in the world while the US sits in last place at a dismal 193rd.
Yet, Israel receives more of America’s foreign aid budget than any other nation. The US has, in fact, given more aid to Israel than it has to all the countries of sub-Saharan Africa, Latin America, and the Caribbean combined—which have a total population of over a billion people.
And foreign aid is just one component of the staggering cost of our alliance with Israel.
Given the tremendous costs, it is critical to examine why we lavish so much aid on Israel, and whether it is worth Americans' hard-earned tax dollars. But first, let's take a look at what our alliance with Israel truly costs.
According to the Congressional Research Service , the amount of official US aid to Israel since its founding in 1948 tops $121 billion (adjusting for inflation, $233.7 billion as of March 2013),
Israel gets all of its aid money at the start of each year, rather than in quarterly installments like other countries. This is significant: It means that Israel can start earning interest on the money right away – interest paid by the US since Israel invests these funds in US Treasury notes. In addition, because the US government operates at a deficit, it must borrow money in order to give it to Israel and then pay interest on it all year. Together these cost US taxpayers more than $100 million every year.
In all, direct US disbursements to Israel are higher than to any other country, even though Israelis only make up 0.1% of the world’s population. On average, Israelis receive 7,000 times more US foreign aid per capita than other people throughout the world, despite the fact that Israel is one of the world’s more affluent nations.
Above COPIED from http://www.ifamericansknew.org/stat/cost.html