The problem with Israel is that it wants not only to occupy but also to keep the West Bank and its population for its own use, indefinitely.
This is why Israel will not stop building settlements there.
Israel is using the billion in direct foreign assistance from the US taxpayer each year to continue paying for these settlements.
In per capita terms, the United States gives each Israeli a direct subsidy worth about 0 per year.
This money could be better used to help American citizens who are facing foreclosures.