They have to spend 100% of the aid on American goods and Israel's arms industry is severely restricted due to the aid. 
It amounts to a grant for the American arms industry and a powerful collar on Israel. The Americans also receive priority at Israel's excellent port facilities in a dangerous region and priority on Israeli intelligence.
When Jordan conquered the West Bank in 1948 they ethnically cleansed the region of ALL JEWS. The community of Hebron which was the oldest continuous Jewish community on earth was removed. The Jewish quarter in East Jerusalem was expelled and the synagogues blown up. Along with many other Jewish villages expelled.  
What does the UN say about that? All I hear is crickets. 
Unbelievable hypocrisy!
Israel captures East Jerusalem 19 years later and it is occupied land?