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Israeli-U.S. relations are an important factor in U.S. policy in the Middle East, and Congress has placed considerable emphasis on the maintenance of a close and supportive relationship. The main vehicle for expressing support for Israel has been foreign aid; Israel currently receives about $3 billion per year in economic and military grants, refugee settlement assistance, and other aid. Congress has monitored aid closely along with other issues in bilateral relations, and its concerns have affected Administration’s policies.

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On May 14, 1948, the State of Israel declared its independence and was immediately engaged in a war with all of its neighbors. Armed conflict has marked every decade of Israel’s existence. Despite its unstable regional environment, Israel has developed a vibrant parliamentary democracy, albeit with relatively fragile governments. Prime Minister Ariel Sharon formed the current three-party coalition in January 2005 in order to secure support for his plan to withdraw from the Gaza Strip and four small settlements in the West Bank. The evacuation of the settlers was completed on August 23. Some observers are predicting an early national election in 2006.