Israel provides the United States with some of the U.S.’ most valuable and enduring strategic assets — a combat-proven testing ground for advanced U.S. military technology, a source of critical real-time intelligence, and a hub of defense innovation.
And Israel provides these tremendous assets in the world’s most volatile region — the Middle East.
Beyond shared democratic values, with these assets, Israel continuously strengthens American industries.
These contributions save the United States billions of dollars annually, offsetting — and in many years exceeding — the cost of U.S. aid to Israel.
Former U.S. Secretary of State Gen. Alexander Haig once remarked that “Israel is the largest American aircraft carrier that cannot be sunk.”
Unlike the 800 U.S. military bases across 80 countries — including at least 19 in the Middle East — Israel requires virtually no American troops on the ground.
Washington spends an estimated $70 billion annually to maintain its global military presence; yet in Israel, the U.S. maintains only a small, jointly operated missile warning site.
For the U.S., Israel is a forward operating asset — providing military reach, intelligence coverage, and deterrence in a region critical to global energy and security — all without the costs or political risks of deploying tens of thousands of personnel.
According to Maj. Gen. George P. Keegan, former head of U.S. Air Force Intelligence, “The U.S. would have to create five CIAs to replicate what Israel provides in intelligence.”
Israeli intelligence contributions have directly shaped U.S. counterterrorism policy, early warnings of Soviet and Iranian arms proliferation, and monitoring of jihadist networks across the Middle East.
Israel’s intelligence-sharing role has repeatedly helped the U.S. avert terrorist plots and identify cyberthreats originating in Iran and Hezbollah, strengthening American homeland and global security.
Israel is the first nation outside the U.S. to receive and deploy the F-15 (Boeing, 1976), F-16 (Lockheed Martin, 1980), and F-35 (Lockheed Martin, 2018) aircraft.
For nearly five decades, the Israeli Air Force has operated as a real-world testing ground for American-made systems — identifying flaws, enhancing performance, and developing upgrades that have been integrated into U.S. production lines.
These Israeli innovations — in avionics, targeting systems, fuel efficiency, and electronic warfare — have helped the United States in these ways:
— Saved the U.S. defense industry 10–20 years of R&D, worth billions of dollars annually.
— Increased American exports, as Israeli combat experience makes U.S. weaponry more marketable worldwide.
— Expanded U.S. employment, as companies like Lockheed Martin and Boeing incorporate Israeli improvements into global production.
Lockheed Martin estimates that the F-35 program alone injects $72 billion into the U.S. economy each year, supporting over 290,000 American jobs across 1,650 suppliers in all 50 states.
Israeli operational feedback has been instrumental in improving the aircraft’s reliability and global sales:
— F-15 and F-16 Variants: Israeli upgrades transformed these aircraft into multirole, long-range strike platforms, with 50–75% of system improvements later adopted by the U.S. Air Force.
— F-35 Enhancements: Israel resolved multiple technical issues during early development, reducing U.S. R&D costs by an estimated $55 billion and accelerating deployment timelines.
— Real-World Combat Data: Israeli missions, particularly in 2024 and 2025 strikes against Iranian assets, demonstrated the F-35’s ability to fly over 1,700 km without refueling, validating American engineering under extreme combat conditions.
The Israeli air force shares daily operational data and performance analyses with U.S. manufacturers and the Pentagon, providing feedback that would otherwise require costly and risky field operations.
Historically, we know the impact has almost been incalculable.
For example, in Operation Mole Cricket 19 (1982), Israel destroyed 20 Soviet-made SAM batteries in Lebanon and downed 82 MiGs without losing a single aircraft.
NATO integrated the lessons learned into its air strategy against Soviet defenses.
Then there was Operation Entebbe (1976), Israel’s hostage-rescue mission inspired U.S. counterterrorism units and led directly to the formation of the U.S. Army’s Delta Force.
Beyond defense, Israel’s high-tech ecosystem — second only to Silicon Valley in startups per capita — fuels innovation partnerships with American firms in cybersecurity, AI, healthcare, and clean energy.
U.S. companies such as Google, Microsoft, Intel, and Lockheed Martin all operate major R&D centers in Israel, exporting advances that feed back into U.S. industries.
The U.S.-Israel Binational Industrial Research and Development Foundation has funded over 1,000 joint projects, generating more than $10 billion in direct and indirect economic benefit to the U.S. economy since its inception.
Israel’s advantage lies in testing technology under live combat conditions.
In contrast, Saudi Arabia’s purchase of China’s “Sky Shield” laser defense system revealed the limits of untested systems.
The laser’s effectiveness was crippled by dust, sand, and heat, requiring 15 to 30 minutes to engage a target — rendering it useless against drones.
By contrast, Israeli laser and missile defense systems, like Iron Dome and Iron Beam, are validated in constant real-world engagements, ensuring proven reliability and effectiveness — and giving American partners confidence in joint defense production.
The U.S.-Israel alliance is not a one-way street of financial aid; it is a strategic partnership of immense mutual benefit.
Israel provides the U.S. with a combat-proven testing ground, intelligence depth unmatched by any ally, and a technology engine that enhances American competitiveness and security.
Measured in billions of dollars in savings, exports, and innovation, Israel is not just an ally — it is an essential extension of America’s strategic, economic, and technological strength in the 21st century.
Adam Reuter is Chairman of Financial Immunities, an international financial risk management firm. He is also co-author of “Israel: Island of Success.”
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