You mean they're a functional outpost - they buy US weapons with money that the US gave them. They're a US funded outpost, they don't and can't produce nearly enough to fund themselves without conquering a lot more productive territory. Israel is a net cost, the argument in favour of Israel is that that cost is absolutely worth it to have a powerful outpost in enemy lands, I'm just saying that the US should have operational control over its own outpost
Israel is operating on a surplus. We could cut 100% of our funding to them, and they'd still buy our weapons. The weapons deal is between private companies and Israel.
Next step? Trump needs to cut foreign aid to Israel. But he won't, because he's an incredibly strong supporter of Israel, and has been since day one. He's okay giving them taxpayer money. It sucks, but it won't change any more than it did under Biden or Obama.