After days in which Romney spoke mostly on foreign policy issues, the fundraiser returned him to more comfortable turf - the state of the US economy, which he sees as the main issue in the Nov. 6 election.
The donations did not come from Israelis but from supporters of the Republican Party who arrived in Jerusalem especially for the breakfast event. The fundraiser attracted more than 40 donors, each pledging to contribute between $25,000 and $50,000 to the Romney campaign.
"What we are seeing now are policies that have not worked for the American people, and will not work," Romney said without mentioning Obama, the Democrat he has blamed for failing to substantially reduce US unemployment, now pegged at 8.2%.
This is the first time in history that a US presidential candidate raises money for his election campaign in Israel. It was the second fundraiser of Romney's trip abroad. He picked up $2 million from Americans in London, as the candidates compete for cash for the expected multi-million-dollar burst of political TV ads in the last 100 days of the campaign.
Las Vegas casino owner Sheldon Adelson, an ally of Israeli Prime Minister Benjamin Netanyahu as well, sat to Romney's left at the breakfast event in Jerusalem.
Adelson had backed Romney rival Newt Gingrich in the Republican primary, but has turned his support to the former Massachusetts governor.
Adelson has contributed some $10 million to a "Superpac" that supports Romney. A Superpac is an outside group not directly affiliated with a campaign that can support a candidate or specific causes.
Romney received a warm welcome from Israeli leaders as he tried to portray himself as a better friend of the Jewish state than Obama, whose relationship with Netanyahu has been testy.