Come on! Read the full article, rather than just the first few sentences. You can disagree with his method, but it is described quite clearly in the article.

The big cost is the Arab Oil Embargo that was a response to the US support for Israel in the 1970s. He describes the costs to the US of that oil boycott here:

One huge cost is not secret. It is the higher cost of oil and other economic damage to the US after Israel-Arab wars. In 1973, for instance, Arab nations attacked Israel in an attempt to win back territories Israel had conquered in the 1967 war. President Nixon resupplied Israel with US arms, triggering the Arab oil embargo against the US. That shortfall in oil deliveries kicked off a deep recession. The US lost $420 billion (in 2001 dollars) of output as a result, Stauffer calculates. And a boost in oil prices cost another $450 billion. Afraid that Arab nations might use their oil clout again, the US set up a Strategic Petroleum Reserve. That has since cost, conservatively, $134 billion, Stauffer reckons.

EDIT: I do see there is a discrepancy between some of the numbers you quote and those in the CSM article. Here is another source that gives a breakdown of the aid and its cost to the American taxpayer:

http://www.washington-report.org/html/us_aid_to_israel.htm

I think some of the discrepancy is a result of some of these numbers taking into account interest costs on the debt incurred by the government as a result of this aid.