"deny" tends to imply that aide is supposed/expected to be provided. Since its neither, I'd opine that its the wrong word to use
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Yeah, right. Every Channukah, the US ambassador pops into Netanyahu's office with a package, and Bibi opens is and says "Look what those nice Americans gave us! Four billion dollars and five jet fighters! Awwww, you shouldn't have!"
The US gave Israel $89 billion up through 2004. my opinion is that they have come to expect money, anfd they wpould agree that "deny" would be an entirely accurate word to describe what we would do if we cut them off.