In exchange for Israel’s peace plan and support of the US-backed $14B package of economic aid and debt relief, the Pro-Israel lobby group, Massie, is clashing with the Biden administration over its proposed sources of funding.
Massie, a pro-Israel advocacy group, has voiced opposition to the White House’s objective of obtaining the funds from inflation and taxes. It began an assault on the package, saying that such financial measures would be harmful to all sides involved.
The group is arguing that both inflation and taxation will lead to a decrease in economic output. If the US were to follow the administration’s plan, it would threaten economic progress while also dampening the likelihood of a successful two-state solution.
Critics of the Biden administration have argued that the money should be pulled from existing foreign aid programs, not from inflation and taxes. Taking money from these programs would not satisfy the increasing demands from US allies, and could jeopardize their security.
Massie also insists that US aid directed to Israel should be linked to the country endorsing a two-state solution. This opinion is contrary to the US position that does not condition aid to Israel on whether or not it supports the two-state solution.
In response to Massie’s criticism, the Biden administration has pointed out that the funds for the $14B package are not coming directly from the US taxpayer. Instead, the US is only playing the role of a broker between the Israeli government and private lenders.
The Biden administration has made its position clear that the funds for the package are purely economic in nature, and that any additional terms under the two-state solution should be addressed separately.
At the moment, Massie is standing firm in its opposition to the package’s proposed sources of funding, and has urged the US to reconsider. Despite Massie’s stance, only time will tell whether the package will be successful. Either way, this debate is sure to be an important part of the ongoing discussions surrounding the US-Israel relationship.