The year 1992 marked political shifts in both Israel and the US, as the loan guarantee dispute deepened tensions in US-Israel relations. The Bush administration continued to tie financial aid for absorbing Soviet Jewish immigrants to a freeze on Israeli settlement construction - a condition Prime Minister Yitzhak Shamir firmly rejected. The dispute became central in both countries’ political discourse, shaping the June Israeli elections and the US presidential race in November. Shamir’s defeat by Yitzhak Rabin signaled a policy shift, as Labour leaders were more open to US cooperation on the peace process. Meanwhile, President Bush’s failure to gain substantial Jewish support contributed to his loss to Bill Clinton. This chapter explores how the loan guarantee debate reflected deeper ideological and strategic divides, and how the Bush administration tried to balance security ties with political pressure. It also examines the role of American Jewish organizations in shaping public discourse and considers the long-term effects of this turbulent period on US-Israel relations.