Recently leaders in both countries have begun to recognize that the aid debilitates Israel's economy, and some officials there have hinted to reporters that a lower level of aid would be acceptable. But analysts say Israel's supporters in the U.S., chiefly the American Israel Public Affairs Committee, are dead set against any reduction. Nevertheless, aid is being reduced by a tiny amount this year, with promises all around that it will be a one-time thing. President Clinton wanted to reward Jordan for making peace with Israel in 1994, but without increasing the foreign aid budget.
Foreign subsidies have become a centerpiece of Israel's economy, experts contend.
Altogether nearly one-seventh of the country's GDP comes from international donations.