Despite all the rhetoric over Israel/Palestine, this news is what truly matters (and it bodes terribly for the region):
Despite expectations that the Obama administration will pressure Israel to accept a two-state solution and implement practical measures, the U.S. administration has sent signals that aid to Israel will, in fact, be raised. At the same time, the budget also imposes harsh conditions on the Palestinian Authority in order to receive aid.
According to the Israeli daily, Haaretz, the budget proposed to Congress for 2010 includes $2.775 billion in aid to Israel, compared to $2.5 billon budgeted for 2009. This is more than a 10% increase in total U.S. aid to Israel.
The budget also includes an increase in the assistance to the production of weapons systems, such as the missile Hetz-3.