Israeli Finance Minister Yuval Steinitz. Credit: Beit Hashalom via Wikimedia Commons.

(JNS.org) Despite the fact the U.S. government plans to reduce financial aid to Israel for fiscal year 2013 by 5 percent, or $155 million out of $3.1 billion, aid this year will still be higher than it was in 2012, Israeli Minister of Finance Yuval Steinitz told Washington sources, Globes reported.

Israeli Finance Minister Yuval Steinitz. Credit: Beit Hashalom via Wikimedia Commons.

The U.S. government had to reduce foreign aid to Israel due to the $85 billion sequester in the federal budget, a drastic solution reached last week to deal with the country’s massive federal deficit of $16 trillion after other negotiations between Democrats and Republicans on Capitol Hill had failed.

Although the reduction in aid to Israel is smaller than originally feared, it will still impact the revenue of some Israeli companies that work with U.S.-funded programs or provide service to U.S. defense companies. But new U.S. Secretary of Defense Chuck Hagel has indicated to Israel that this reduction will not affect American funding for Israeli missile defense programs such as the Iron Dome.

Posted on Friday, March 8, 2013 at 10:45AM

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Source: JNS.org

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