This article looks at countries that receive the most US foreign military aid. You can skip our detailed analysis of how Washington has aided its allies amid security challenges in recent years, and head over directly to the U.S. Foreign Military Aid by Country: Top 5 Countries.
Global military spending reached a record high of $2.44 trillion in 2023, having grown 6.8% compared to the year before. According to the Stockholm International Peace Research Institute (SIPRI), this is the biggest percentage spike in defense expenditure since 2009 and the ninth consecutive fiscal year during which military spending has increased.
READ ALSO: 15 Countries That Provided the Highest Military Aid to Ukraine and 25 Countries That Receive the Most Foreign Aid From the US.
The United States spent $916 billion on defense last year, representing 37.5% of the global military expenditure. The figure also amounted to 68% of NATO’s total defense bill during the year. A considerable portion of the overall spending from Washington went to providing military assistance to Ukraine in its war against Russia, and in aiding Israel as it advances against Hamas in the Gaza Strip. In April this year, President Biden signed into law a $95 billion war aid assistance package for Ukraine, Israel, Taiwan, and other countries in global hot spots. According to Reuters, much of this is expected to go into the procurement of pricey, advanced military equipment from aerospace and defense giants such as Lockheed Martin Corporation (NYSE:LMT), RTX Corporation (NYSE:RTX), The Boeing Company (NYSE:BA), Northrop Grumman Corporation (NYSE:NOC), and more.
The surge in global military spending amid the volatile situation in Europe and the Middle East has created a boom in the defense industry. Lockheed Martin Corporation (NYSE:LMT)’s share price has spiked 55% since Russia invaded Ukraine, from $361 in February 2022 to its current level of $558 per share, due to strong demand for its weapons, such as HIMARS, GMLRS, and the F-35. The company generated over $67 billion in revenues in 2023, of which an estimated 96% was defense-related. With no immediate end to the conflicts in sight, the stock is set to further strengthen. According to Insider Monkey, 47 hedge funds were bullish about Lockheed Martin Corporation (NYSE:LMT) during the first quarter of 2024.
Northrop Grumman Corporation (NYSE:NOC)’s shares have also soared 33% since the start of the Russia-Ukraine war. Last month, the company finalized a co-production agreement with a Ukrainian firm Ukroboronservice to manufacture medium-caliber ammunition in the country. Under the contract, Northrop Grumman Corporation (NYSE:NOC) will provide equipment and training to Ukroboronservice to establish an assembly line in the country to produce and test these weapons.
On the other hand, The Boeing Company (NYSE:BA) is currently working on a 2022 contract worth $927 million to deliver Israel’s four KC-46A Pegasus aircraft in the next few years. The company also accelerated work on an order for 1,000 small-diameter bombs for Israel, under a contract signed in 2021, after Hamas launched an attack on Israel in October last year.
RTX Corporation (NYSE:RTX) is flying high as well amid strong financial results. The company posted a revenue of $69 billion in 2023 and has made a robust start to the first half of the ongoing fiscal year. During the first quarter, it generated $19.3 billion in sales and an EPS of $1.34, which was 10% higher YoY. The company fared even better in the second quarter, registering a revenue of $19.8 billion and an EPS of $1.41.
Anticipating a sustained demand for its weapons and other offerings, RTX Corporation (NYSE:RTX) has revised its full-year outlook with total revenue now forecast between $78.5 to $79.5 billion, up from the prior range of $78 to $79 billion. The company has also revised its EPS expectations to between $5.35 – $5.45, compared to $5.25 – $5.40 in the earlier quarter. It is one of the best defense stocks to buy right now. You can read about other top-performing stocks in the industry by heading over to the 10 Best Aerospace and Defense Stocks to Buy Now.
While we acknowledge the potential of RTX Corporation (NYSE:RTX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RTX Corporation (NYSE:RTX) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
ChameleonsEye / Shutterstock.com
Methodology
Countries that receive the most foreign military aid from the US are ranked in ascending order of the disbursements made by Washington under the peace and security category over the last five years, between 2019 and 2023. Data has been sourced from ForeignAssistance.gov, the US government website that makes foreign aid data available to the public.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Let’s now head over to the list of countries that receive the most foreign military aid from the United States.
U.S. Foreign Military Aid by Country: Top 20 Countries
20. Mexico
Foreign Military Aid from the US (2019-2023): $295 million
Mexico is a major recipient of American military aid to combat challenges such as organized crime and violence, drug trafficking, and poor law and order. Since 2008, Washington has disbursed over $3 billion worth of military assistance to its neighbor.
19. Czech Republic
Foreign Military Aid from the US (2019-2023): $324 million
The United States has disbursed $324 million in military assistance to the Czech Republic over the last five years. Washington, in 2022, endorsed a $106 million package for Prague to modernize its armed forces and build a cyber response team within the military to counter Russian threats in the continent.
18. Estonia
Foreign Military Aid from the US (2019-2023): $334 million
Estonia is a Baltic country that borders Russia in the east. It is one of the largest recipients of American foreign military aid, with $334 million being disbursed by Washington over the last five years.
17. Lithuania
Foreign Military Aid from the US (2019-2023): $339 million
US military assistance to Lithuania is aimed at enhancing the country’s capabilities in border security, hybrid warfare, and maritime and aerial territorial defense. As part of these efforts, Washington in March this year approved a $228 million military aid package for Lithuania, Estonia, and Latvia.
16. Ecuador
Foreign Military Aid from the US (2019-2023): $350 million
Ecuador and the United States cooperate on addressing the challenges emanating from narcotrafficking and illegal armed groups that straddle the country’s border with Colombia. An estimated $350 million has been disbursed by the US as military aid to Ecuador since 2019.
15. Poland
Foreign Military Aid from the US (2019-2023): $375 million
Poland is an important US ally on NATO’s eastern flank. The country’s military is undergoing a major modernization program, which has been helped by American approval of the sale of key weapons, direct loan financing, and also military aid packages.
14. Romania
Foreign Military Aid from the US (2019-2023): $397 million
The United States has provided $397 million in military assistance to Romania over the last five years, to enhance maritime security in the Black Sea and to counter the growing Russian influence in the region.
13. Bulgaria
Foreign Military Aid from the US (2019-2023): $431 million
Bulgaria is one of the largest recipients of foreign military aid from the United States. The two countries signed a security partnership, the US-Bulgarian Defense Cooperation Agreement, under which Washington provides the country military assistance, and in exchange, the US gets access to military facilities in Bulgaria. During the last five years between 2019 and 2023, the European country received $431 million in military aid from the United States.
12. Tunisia
Foreign Military Aid from the US (2019-2023): $471 million
The United States enjoys critical military relations with Tunisia and has disbursed $471 million since 2019 to the country. However, over the last couple of years, American aid to Tunisia has considerably dropped due to the country’s increasingly authoritarian drift under the current government.
11. Pakistan
Foreign Military Aid from the US (2019-2023): $536 million
Historically, Pakistan has been one of the largest recipients of American aid – economic, military, and humanitarian. However, over the past decade, ties between the two countries have turned lukewarm, with the US even freezing military aid to the country in some instances over accusations of Islamabad harboring certain militant groups.
10. Colombia
Foreign Military Aid from the US (2019-2023): $731 million
Colombia and the US closely cooperate in disrupting transnational criminal organizations, including narco terrorist groups. The US has disbursed $731 million in military assistance to the country since 2019 to strengthen peace, security, and law and order.
9. Philippines
Foreign Military Aid from the US (2019-2023): $809 million
The Philippines has received over $800 million in military aid from the United States since 2019. Washington this year announced to provide Manila with another $500 million amid ongoing tensions with China in the region.
8. Somalia
Foreign Military Aid from the US (2019-2023): $998 million
The United States is one of Somalia’s largest international donors. The American government has provided over $3 billion in the last decade to Mogadishu and other peacekeeping missions in the country. In January 2023, the US announced $9 million for Somalia to fight Al-Shabaab militants.
7. Lebanon
Foreign Military Aid from the US (2019-2023): $1 billion
The United States is a key donor of Lebanon’s military. In January last year, the US government rerouted $72 million in aid for the Lebanese military and police to boost the wages of their personnel. The US has disbursed $1 billion in foreign military assistance to the Middle Eastern country over the last five years.
6. Iraq
Foreign Military Aid from the US (2019-2023): $2.2 billion
Iraq is one of the largest receivers of American military assistance, with Washington having provided the country with over $2 billion in aid since 2019. The two countries enjoy a strategic security partnership, aimed at countering the ISIS threat in the region.
5. Jordan
Foreign Military Aid from the US (2019-2023): $2.3 billion
The United States and Jordan cooperate on counterterrorism, border and maritime security, and cybersecurity. Washington disbursed $2.3 billion to the country between 2019 and 2023. The White House announced last year that it would provide Jordan with $1.45 billion in further aid between 2023 and 2029, with some funds being routed toward security needs as well.
4. Ukraine
Foreign Military Aid from the US (2019-2023): $2.6 billion
The United States has approved a whopping $175 billion in financial, military, and humanitarian aid for Ukraine since Russia invaded the country in February 2022. According to aid-related data available to the public, $2.6 billion worth of funds have been disbursed to Kyiv to meet its military needs. This month, the US government announced $125 million in further fresh military assistance for the country.
3. Afghanistan
Foreign Military Aid from the US (2019-2023): $6.1 billion
Since the collapse of Ashraf Ghani’s regime to the Taliban in 2021, the US government has halted providing military assistance to Afghanistan. Despite that, it ranks among the top recipients of US military aid during the last five years due to a whopping $6.1 billion being disbursed between 2019 and 2021. In fact, between 2001 and 2021, Washington provided almost $73 billion in military aid to Kabul to fight the Taliban and other militant groups such as Al Qaeda and ISIS.
2. Egypt
Foreign Military Aid from the US (2019-2023): $6.3 billion
Egypt is one of the largest recipients of American assistance, with more than $50 billion provided by Washington to the country in military aid since 1978. This support has enhanced Egypt’s capabilities to defend its land and maritime borders from external threats, and to also be equipped well enough to face the emerging threats from terrorist groups, especially from those in the Sinai Peninsula.
1. Israel
Foreign Military Aid from the US (2019-2023): $16.5 billion
Since Israel’s founding in 1948, it has been the largest recipient of all foreign aid from the United States. According to a report in Al Jazeera, it has received over $300 billion in assistance, of which 74% has been military-related. During the last five years, Washington has disbursed over $16 billion in foreign military aid to Israel. Since the Netanyahu government’s order of invasion against Hamas in the Gaza Strip, the US government has approved the sale of weapons to Israel on a large scale and also provided heavy financial and military assistance.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. U.S. Foreign Military Aid by Country: Top 20 Countries was originally published at Insider Monkey.
