Trump says US will stop $4B annual aid to Israel in 2027

President Donald Trump announced on Tuesday that the United States will end its annual $4 billion aid package to Israel in 2027. He stated that Washington will replace the cash transfer with direct sales of military equipment to the Middle East ally. Trump made the declaration during a phone interview with Fox News Channel on the day of the midterm elections.

The president said Israeli Prime Minister Benjamin Netanyahu initiated the discussion. Trump claimed the two leaders have talked about the arrangement for several years. He described the change as a move away from cash grants toward a barter system involving arms and other goods.

Trump argued that the United States spends too much money on the assistance. He noted that Israeli officials indicated they no longer require the specific aid previously provided. The president also pointed to domestic political dynamics as a factor in the decision.

“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.”

Trump mentioned that U.S. aid to Israel has become a focal point for Democratic candidates. He cited Michigan Senate candidate Abdul El-Sayed as an example of a politician using the issue in their campaign. Netanyahu’s office did not immediately comment on the president’s remarks.

Recent academic research provides context for the scale of U.S. support. A study published last year found that the United States provided at least $21.7 billion in military assistance to Israel following the start of the Gaza war in 2023. That figure covers the administrations of both President Joe Biden and President Trump. Another report by the Costs of War project at Brown University estimated an additional $10 billion in security aid and operations across the region over the same two year period.