Trump Announces End of $4 Billion Annual Aid to Israel

President Donald Trump said on Tuesday that the United States will stop providing $4 billion in annual aid to Israel in 2027. The White House chief made the announcement during a phone interview with Fox News Channel on Election Day. He stated that the two countries will instead engage in arms sales.

Trump claimed that Israeli Prime Minister Benjamin Netanyahu initiated the discussion. The president said they have been talking about the change for a couple of years. He described the current aid as a large expense for the U.S. budget that Israel no longer needs. Trump noted that the aid has become a political issue for Democratic candidates. He specifically mentioned Abdul El-Sayed, a U.S. Senate candidate in Michigan, as a vocal critic who uses the funds as a talking point.

“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’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 Israeli elections. He did not address the aid change directly. Political rivals, however, reacted quickly to the news.

Gadi Eisenkot, a former military chief and Netanyahu’s chief rival, called for the prime minister to address the shift. Eisenkot said the defense establishment learning of the change through media shows dangerous conduct. Yair Golan, a leader in the opposition bloc, said ending the aid would deal a severe blow to Israel’s security. Golan noted that the country is currently fighting wars on multiple fronts. He stated the burden of funding defense needs would fall entirely on the Israeli public.

The U.S. has sent tens of billions of dollars in military aid to Israel over several decades. In 2016, President Barack Obama signed a 10-year security agreement for $38 billion. That deal provided $3.8 billion annually. The agreement required Israel to spend the funds on American military industries. Netanyahu has previously discussed tapering off this aid over a 10-year period. He told The Economist in January that such a change was in the works.

Congress will play a large role in determining the final outcome. The current memorandum of understanding does not expire until 2028. Analysts say an abrupt end by 2027 is unlikely without a legislative process. The 2027 National Defense Authorization Act includes a provision to expand cooperation on defense technology. It has not yet been approved by Congress. Rep. Ro Khanna, a California Democrat on the House Armed Services Committee, criticized the provision. He said such integration would lead to the U.S. losing sovereignty.

A person familiar with diplomatic discussions, who was not authorized to comment publicly, expressed concern about the shift. They said Israelis fear giving up intellectual property while still facing U.S. constraints. The change also affects the U.S. economy. Much of the assistance comes in the form of foreign military financing. This requires Israel to spend the money on American-produced weaponry. Defense contractors may see an impact unless Israel continues to purchase American materiel.

David Schenker, a former Trump diplomat, said the announcement likely would not change the minds of Republican or Democratic voters. He noted that phasing out aid has been a subject of debate for years. The Camp David peace accords with Egypt require the U.S. to support both Israel and Egypt with security assistance. These obligations complicate the transition. Schenker said the real question is whether weapons deliveries will be affected and if Israel will be prioritized.