OK good point that the $18 billion is not all to be spent this year, thanks for correction, I didn't realize that, it is good to be clear! The best source i have for understanding this stuff is the study from professors at Brown University I linked above, but I haven't read/assimilated the whole thing yet.
But my main point is we DO give Israel money to buy our weapons, they are indeed a gift. I don't know if Israel spends any of their own budget on US weapons -- my guess would be very little, because they would _rather_ be funding their own Israeli domestic defense industry (which is of course quite developed), they spend our military aid $$ on US defense industry because it is required as a condition of the gift.
(There was a time in the past, when Israel, alone of all military aid recipients, was allowed to spend a portion of military aid on their own domestic defense industry, I guess becuase the US wanted to support the develpment of that specially among all other recipients of US military aid. It worked, Israel now sells $billions of weapons to autocratic Arab regimes in the middle-east and north africa: Notably Bahrain, the UAE, and Morocco. Saudi Arabia would love in on that too. But those provisions expired a few years ago, now all US military aid to Israel has to be spent on weapons from the US, just like other US military aid recipients.)