Trump announces end to $4 billion in annual aid to Israel by end-2026, while arms sales continue
Key Facts
US President Donald Trump said in a phone interview with Fox News on Tuesday that the United States would stop providing $4 billion a year to Israel in 2027, while continuing to sell it weapons. Trump linked the decision to an agreement with Israeli Prime Minister Benjamin Netanyahu to end the funding by year-end, but did not explain how that would be carried out. The statement puts an end to aid at the heart of the two countries’ security relationship, while leaving arms sales as a channel separate from annual funding. The announcement came on the day of the US midterm elections, amid political debate over aid to Israel. Trump said Israel did not need the assistance and that it represented “a large sum of money the United States spends.”
US military aid under the existing memorandum of understanding totals $3.8 billion a year and runs through September 2028, according to Reuters. The memorandum, covering fiscal years 2019 to 2028, provides annual funding of $3.3 billion for foreign military financing and $500 million for cooperative missile-defense programs, according to the US State Department. That means the date Trump cited is about two years before the current arrangement ends. The president did not explain how he would address the existing commitment or whether ending the funding would require action by Congress. The gap between the announcement and the memorandum’s term leaves the question of implementation open, while details of the agreement Trump cited have not been made public.
Trump said Israel no longer needed the aid and that it had become a political issue for Democratic candidates, including Abdul El-Sayed, the Democratic Senate candidate in Michigan. The rationale combines his assessment of Israel’s defense needs with the cost of the funding to the United States and domestic election debate. Foreign military financing provides Israel with funds to buy US weapons, according to The Associated Press. Trump’s announcement that sales would continue does not necessarily mean deliveries of equipment already purchased would stop. The agency said arms purchases can take years between sale, production and delivery, which could keep some shipments on track even after a sudden halt to aid. That time lag separates the funding decision from the arrival of equipment tied to earlier purchases.
In Israel, Gadi Eisenkot criticized the announcement of the change through the media, saying it “shows how dangerous Benjamin Netanyahu’s conduct is.” Yair Golan warned that halting the aid would deal a severe blow to Israel’s security amid fighting on multiple fronts. Golan said “the burden of financing defense needs at this critical moment will fall entirely on the Israeli public.” In Washington, former US diplomat David Schenker said the announcement would not change the positions of Republican or Democratic voters. These responses highlight two sides of the political debate: the security impact of reducing funding for Israel and the extent to which the issue affects the views of US voters.
US State Department data show that the arms relationship extends beyond annual aid: the United States had 599 active foreign military sales cases with Israel in October 2023, valued at $23.8 billion. The figure provides context for the scale of arms deals, some of which may remain in progress for years, but it does not determine the fate of each case after the announcement. The Trump administration also notified Congress in 2025 of potential arms sales to Israel exceeding $12 billion, and additional potential sales exceeding $7 billion were reported by the time of a 2026 Congressional Research Service report. In the broader context of recorded aid, the total rose to $12.5 billion in 2024, compared with $3.8 billion in 2023; the 2024 figure included $5.7 billion in missile-defense funding. The figures show the different channels for aid and sales, while Trump’s announcement provides no details on its effect on existing cases or potential deals.
Congress remains a key factor in determining the aid’s future. The Associated Press said it has a major role and that abruptly ending the existing arrangement would be extremely difficult. The 2027 National Defense Authorization Act had not been passed at the time of the agency’s report, although it included a provision for US-Israeli cooperation on developing new defense technologies. The Congressional Research Service report says memoranda of understanding are not legally binding like treaties and do not require Senate ratification, and that Congress can accept or change annual aid levels. The report also said US and Israeli officials could discuss a shift after fiscal year 2028 from direct military aid to joint programs. Trump did not specify how the funding would be ended, while the current memorandum remains in effect through September 2028.