Israel Supplemental Appropriations Act of 2023 This bill provides FY2024 supplemental appropriations to the Department of Defense (DOD) and the Department of State for assistance to Israel. The bill designates the funding as emergency spending, which is exempt from discretionary spending limits. The bill provides appropriations to DOD for Operation and Maintenance; Procurement; and Research, Development, Test and Evaluation. The funding is provided for purposes such as replacing defense articles that were provided to Israel; reimbursing DOD for defense services and training provided to Israel; the procurement of Israel's Iron Dome and David's Sling defense systems; Defense Production Act purchases; and the development of Israel's Iron Beam defense system. The bill provides appropriations to the State Department for Diplomatic Programs, including Worldwide Security Protection; Emergencies in the Diplomatic and Consular Service; and the Foreign Military Financing Program. In addition, the bill includes several provisions that expand the authorities of the President to transfer defense articles and services from DOD to Israel. Finally, the bill specifies that the funds provided by this bill may not be used (1) in connection with the war in Ukraine; or (2) for assistance to any entity that is located in the territory of Gaza or is controlled or influenced by Hamas, Palestinian Islamic Jihad, or any other organization that the State Department has designated as a foreign terrorist organization.