While the fact shouldn't be a surprise, the admission is definitely newsworthy and begs a few questions about US foreign policy.

The USA gives Isarel billions in aid each year but Israel is in violation of many UN resolutions. This kind of hipprocacy is exactly the kind of thing that hinders the USA's credibility in trying to stop nations like Iran form getting the bomb. The US needs to stop the bullshit. If they told the truth and said we know Israel has the bomb, they've had it for years and make the case that Isael doesn't exactly call for other nation's destructions as a defence it might go a long way.

Furthermore, the USA needs to give Israel an ultimatum of 1967 borders with new Palestinian state or no more aid. Then you'd be able to see some credibility back on the USA's side. Oh and they need to impeach Bush.