Well, double standard is of course a thing (like accusing the only democracy for not being democratic enough without saying anything about much more oppressive regimes around; but also about surveillance in one place and also another). I think it is to make a different point though.

This funding from the US was to get around surveillance (everywhere), so it makes sense to argue, that a rival global player exports surveillance tech, because the funded tech is to counter that. That argument would not work with Israeli surveillance tech.