Fact Sheet

No, Ro Khanna – That $2.8 Billion Doesn’t ‘Go to Israel.’ It Stays in America.

Washington, DC – September 27, 2021: Rep. Ro Khanna (D-CA) speaks on camera about the need to Build Back better for the pending infrastructure bill by considering its carbon footprint (Shutterstock)
THE LIE

America is giving Israel $2.8 billion that could be spent helping Americans afford food and gas. 
THE TRUTH

The money never leaves America. That $2.8 billion is a U.S. munitions order paid through Foreign Military Financing – spent on American-made weapons from American contractors. By the 2028 Fiscal Year, 100% of that financing must be spent in the U.S. Cutting it doesn’t buy food and gas; it cuts American factory orders.
BACKGROUND

In September 2026, the Trump administration proposed a $2.8 billion munitions sale to Israel, including 40,000 American-made 2,000-pound bombs, financed through U.S. Foreign Military Financing.

Rep. Ro Khanna called the package ‘$2.8 billion of taxpayer funded bombs’ and said that money should go to Americans for food and gas. Dropsitenews
TRUTH EXPLAINED

The money does not leave the American economy. Under the current MOU, nearly all U.S. military assistance to Israel is spent on American-made defense goods – flowing to Boeing, Lockheed Martin, Raytheon, and their suppliers across the country. By FY2028, the requirement reaches 100%. Jewish Virtual Library

Israel is the cheapest major U.S. ally by any measure. The U.S. spends roughly $21 billion annually stationing 40,000 troops in Germany, $27 billion for 50,000 troops in Japan, and $15 billion for 30,000 troops in South Korea. Israel costs $3.8 billion – and has never asked for a single American soldier. Washington Institute

The U.S.-Israel defense relationship generates direct returns: combat-tested F-35 data from Israel’s operational fleet now shapes software updates and tactics for American pilots. Israel Aerospace Industries manufactures wings for the global F-35 fleet. The U.S. Marine Corps selected the Tamir interceptor – originally developed for Iron Dome – for its own Medium Range Intercept Capability air defense system. John Spencer. X

Israel’s Trophy Active Protection System, proven in combat against anti-tank missiles, has been integrated onto U.S. Army Abrams tanks to protect American crews. RTX (formerly Raytheon) partners with Rafael on missile defense. Boeing manufactures major components for Arrow interceptors. These are American jobs and American capabilities – not foreign charity. Spencerguard

Israeli intelligence has disrupted terrorist plots targeting Americans, provided real-time intelligence on Iranian missile programs and proxy networks, and in 2018 seized Iran’s secret nuclear archive – giving the international community documented proof of Tehran’s weapons program. No other U.S. military assistance recipient delivers this volume of actionable intelligence. John Spencer. Spencerguard. Guardian

Defense analyst John Spencer, Executive Director of the Urban Warfare Institute and 25-year Army veteran, concludes: ‘The United States would spend many times more to independently develop, test, and combat-validate the technologies, concepts, and operational lessons generated through decades of U.S.-Israeli cooperation.’ Calling this ‘aid’ is the wrong frame – it is a strategic investment with measurable American returns. John Spencer. Spencerguard. Washington Institute
QUOTES

“The more accurate and appropriate term would be ‘investment’ that provides enormous profit. Most of the resources are invested in the American defense industries toward the acquisition of advanced weapons, and not in Israel. The United States receives ongoing critical intelligence from Israel of major value, combat experience that tests and improves the weapons, joint development of weapons that are among the most sophisticated in the world, original and innovative technologies, and proven combat doctrines.” – Institute for National Security Studies, American Contributions to Israel’s National Security
TAKEAWAY

Khanna’s framing treats a $2.8 billion munitions order as cash handed to a foreign government. It is not. The money stays in American factories, employs American workers, and buys weapons the U.S. industrial base already builds. Strip that context and it looks like a giveaway. Restore it and you see a U.S. purchase order – not a food-and-gas fund leaving the country.