"There are at least three ways in which [U.S. foreign] aid to Israel is different from that of any other country. First, since 1982, U.S. aid to Israel has been transferred in one lump sum at the beginning of each fiscal year, which immediately begins to collect interest in U.S. banks. Aid that goes to other countries is disbursed throughout the year in quarterly installments.
Second, Israel is not required to account for specific purchases. Most countries receive aid for very specific purposes and must account for how it is spent. Israel is allowed to place US aid into its general fund, effectively eliminating any distinctions between types of aid. Therefore, U.S. tax-payers are helping to fund an illegal occupation, the expansion of colonial-settlement projects, and gross human rights violations against the Palestinian civilian population.
A third difference is the sheer amount of aid the U.S. gives to Israel, unparalleled in the history of U.S. foreign policy. Israel usually receives roughly one third of the entire foreign aid budget, despite the fact that Israel comprises less than .001 of the world’s population and already has one of the world’s higher per capita incomes. In other words, Israel, a country of approximately 6 million people, is currently receiving more U.S. aid than all of Africa, Latin America and the Caribbean combined when you take out Egypt and Colombia."
Not to mention one of the biggest functions of this aid is to prop up the US military industry.
Over the last 20 years, the U.S. has been slowly phasing out economic aid to Israel and gradually replacing it with increased military aid. In 2007, the Bush Administration and the Israeli government agreed to a 10-year, $30 billion military aid package FY 2009 to FY 2018. In 2012, the U.S. began giving Israel $3.1 billion a year (or an average of $8.5 million a day) and promised to provide that amount every year through FY 2018.