U.S. to End $4B Israel Aid

The United States will cease providing $4 billion in annual aid to Israel in 2027, President Donald Trump said on Tuesday. The Republican leader announced the change during a phone interview with Fox News Channel on Election Day for the midterms. He stated that the U.S. will continue to sell arms to its ally in the Middle East.

Trump said Israeli Prime Minister Benjamin Netanyahu proposed the idea. The two leaders have discussed the matter for several years. Trump characterized the arrangement as barter, noting that Israel does not require the cash and that the sum represents a large expenditure for the American public.

The announcement coincides with a period of intense political scrutiny over U.S. support for Israel. Trump cited Michigan U.S. Senate candidate Abdul El-Sayed, a vocal critic of Israel, as an example of a Democrat using the aid as a talking point. He also noted that far-right commentators, including Tucker Carlson, have questioned the value of the relationship. Trump argued that ending the direct payment removes an easy target for political opponents.

David Schenker, who served as Trump’s top diplomat for the Middle East in his first term, assessed the timing of the announcement. Schenker, now with the Washington Institute for Near East Policy, said the move likely would not shift votes among Republicans or Democrats. He described the development as a long time coming.

Israeli opposition leaders responded critically to the news. Gadi Eisenkot, a former military chief and Netanyahu’s chief rival, called on the prime minister to address the strategic shift. Eisenkot stated in a statement that the defense establishment learning of the change through the media alongside the public demonstrated dangerous conduct by Netanyahu. Yair Golan, a leader in the opposition bloc and former deputy military chief, said the end of aid would deal a severe blow to security while Israel fights on multiple fronts. Golan argued that the financial burden would fall entirely on the Israeli public.

Netanyahu’s office had not issued a comment as of Tuesday evening in Israel. The prime minister posted twice on social media but focused on allegations of foreign interference in local elections rather than the U.S. announcement.

The current aid structure stems from a 2016 security agreement signed by President Barack Obama. That deal provided $38 billion over 10 years, or $3.8 billion annually. It required Israel to spend the funds on American military industries, phasing out the ability to purchase Israeli products. Netanyahu told The Economist in January that he intended to taper off U.S. military aid within a decade.

Congress will play a decisive role in the transition. The current memorandum of understanding is set to expire in 2028, making an abrupt stop in 2027 difficult without legislative action. The 2027 National Defense Authorization Act includes a provision to expand cooperation on defense technology and integrate Israeli technology into the U.S. military. Rep. Ro Khanna, a California Democrat on the House Armed Services Committee, criticized the provision, arguing it would cost the U.S. sovereignty.

A person familiar with diplomatic discussions but speaking on condition of anonymity expressed concern that Israel might surrender intellectual property while remaining subject to U.S. constraints. Behind the scenes, officials have discussed restructuring the relationship into a partnership focused on defense tech and weapons manufacturing. The 2027 NDAA has not yet been approved by Congress.

The shift from aid to arms sales impacts the U.S. economy. Much of the current assistance is foreign military financing, which requires Israel to purchase American-produced weaponry. If Israel does not purchase the same volume of U.S. materiel, defense contractors may face financial effects. Schenker noted that years of previous purchases remain in the pipeline, as construction and delivery take time. He identified the priority of weapons deliveries as the key question for the future relationship.