(JNS.org) Despite the fact the U.S. government plans to reduce financial aid to Israel for fiscal year 2013 by five percent, or $155 million out of $3.1 billion, aid this year will still be higher than it was in 2012, according Israeli Minister of Finance Yuval Steinitz, as reported by Globes.
The U.S. reduction in foreign aid to Israel is being attributed to the $85 billion sequester in the federal budget that took effect after negotiations between Democrats and Republicans on Capitol Hill failed to address the $16 trillion federal deficit.
Although the reduction in aid to Israel is smaller than originally feared, it will still affect some Israeli companies that work with U.S.-funded programs or provide service to U.S. defense companies. U.S. Secretary of Defense Chuck Hagel has indicated, however, that American funding for Israeli missile defense programs such as the Iron Dome will not be reduced.