Trump ends annual $4 billion in aid to Israel

The United States has provided Israel with billions of dollars in military support for decades. On Tuesday, President Donald Trump announced that this annual flow of cash will stop in 2027.

The president made the declaration during a phone interview with Fox News on Election Day for the midterms. He stated that the U.S. will no longer give $4 billion in aid each year to Israel. However, the United States will still sell weapons to the country. Trump described the new dynamic as a form of barter. He said the money represents a large expense for American taxpayers that Israel does not require.

According to Trump, Israeli Prime Minister Benjamin Netanyahu brought the idea to him. The two leaders have discussed the plan for a couple of years. Trump noted that U.S. aid to Israel has become a focal point for Democratic candidates. He specifically mentioned Michigan U.S. Senate candidate Abdul El-Sayed, who has criticized the relationship. Trump called the aid an easy target for political opponents.

“You can consider it barter. You can consider military aid or cash,” Trump said. “Look, we give them $4 billion of things and money, and they don’t need it. And I was approached by Bibi Netanyahu, and we’ve been talking about it for a couple of years because it’s a lot of money.”

Netanyahu and his office had not issued a formal comment as of Tuesday evening in Israel. The prime minister posted twice on social media, but those posts addressed allegations of foreign interference in local elections rather than the U.S. announcement. His political rivals reacted quickly. Gadi Eisenkot, a former military chief and Netanyahu’s chief rival, said it was dangerous for the public to learn of the shift through the media. Yair Golan, a leader in the opposition bloc, stated that ending the aid would be a severe blow to Israel’s security. Golan warned that the cost of funding defense would fall entirely on the Israeli public.

The current funding structure stems from a 2016 agreement signed by President Barack Obama. That deal allocated $38 billion over ten years. Under those terms, Israel was required to spend the funds on American military products. This arrangement meant the money flowed back into the U.S. economy. Netanyahu has previously said he wanted to taper off this aid. He told The Economist in January that the change was in the works.

Experts say an abrupt end to the aid is unlikely to happen exactly as described. The current agreement is set to expire in 2028, not 2027. Congress will have a major say in the final outcome. David Schenker, who served as Trump’s top diplomat for the Middle East in his first term, said it is unclear if a wind-down could happen as early as 2027. Schenker questioned whether weapons deliveries would be prioritized if the aid stops.

The 2027 National Defense Authorization Act includes a provision for expanded cooperation on defense technology. This bill has not yet been approved by Congress. Critics, including Rep. Ro Khanna, have argued that deeper integration could affect U.S. sovereignty. Meanwhile, U.S. defense contractors may face impacts if Israel does not continue to purchase American materiel at the same volume.