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Israel receives about $3 billion each year in military assistance from the U.S. and about three-quarters of it must be spent in the U.S.

The institute produced a 2011 report that says Israel has received more than $110 billion from the U.S. since it became a state in 1948 and that the assistance comprises nearly one-quarter of the nation’s security budget.

The report found that the aid limits Israel’s diplomatic freedom, fosters the impression that Israel is dependent upon the U.S. and curbs the nation’s sovereignty.

“The extensive economic and strategic damage wrought by America’s financial assistance to Israel cannot be assessed with full accuracy until Israel disconnects itself from it entirely,” the report says.

“Based on economic and geopolitical projections, this aid is bound to undergo changes, while its damaging effect will only worsen.”

Uzi Rabi, director of the Moshe Dayan Center for Middle Eastern and African Studies at Tel Aviv University, said the symbolism of cutting off aid would be bigger than the financial implications.

“It would send the message that Israel is left alone, and I think it makes Israel very nervous,” Mr. Rabi said.

“In my point of view this is not the right way to approach the region, because these messages create growing anxiety among U.S. allies, and it doesn’t contribute to the stability in the region because it gives them the idea that one should deal with the problems by itself,” he said.