Almost all of that is in the form of credit to be used to buy American military equipment and services. It's as much a subsidy for American arms contractors as it's aid to Israel, although yes it is both. Still, it's not cash and they can't just spend it on whatever they like.

Furthermore regarding the linked article, how is a loan guarantee just thrown in to the total. Unless Israel actually defaults on every single loan every year the cost of that is close to zero. Is that really a reasonable assumption to make? So now who's lying.

That's pretty much the point I was making. The CIA and Mossad extensively share intelligence with each other, so it's unlikely that A) The US intelligence agencies didn't know about NSO's activities, and B) They'll punish them in any way.