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Bush Signs Foreign Aid Legislation, but Israel Could Lose $25 Million

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President Bush on Tuesday signed the 1990 foreign aid spending bill, which includes $3 billion in all-grant aid to Israel.

But Israel could stand to lose $25 million of that sum in military aid, as a result of the budget reconciliation bill Congress adopted Tuesday night.

That bill partially restored funds slashed when President Bush ordered across-the-board budget cuts on Oct. 16, in line with the Gramm-Rudman-Hollings deficit-reduction law.

Israel received its foreign aid package for the 1990 fiscal year on Oct. 31, even though the foreign aid bill had not yet been signed.

But because of Bush’s across-the-board cuts, it received $70 million less than the promised $1.2 billion in economic aid, and $104 million less than the promised $1.8 billion in military aid.

Congress partially restored those funds Tuesday, and as a result, Israel will receive $63.6 million of the $70 million cut from its economic aid package.

But the lawmakers left intact a 1.4 percent cut that affects most non-Pentagon programs. That will reduce Israel’s military aid package by $25 million. It does not impact the economic aid package.

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