U.S. to Stop $4B Annual Israel Aid

The United States will cease providing $4 billion in annual aid to Israel starting in 2027, President Donald Trump said on Tuesday.

Trump announced the change during a phone interview with Fox News Channel on Election Day. He stated that the U.S. will continue to sell military hardware to its closest ally in the Middle East.

The president said Israeli Prime Minister Benjamin Netanyahu initiated the conversation about the change. Trump noted that the two leaders have discussed the proposal for a couple of years. He described the arrangement as a form of barter, where Israel purchases American equipment instead of receiving direct cash aid.

"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 said the aid has become a focal point for political opponents. He cited Michigan U.S. Senate candidate Abdul El-Sayed as an example of a Democrat using the payments to criticize the relationship. The president added that even some conservative commentators, including Tucker Carlson, have questioned the value of U.S. support for Israel.

Yair Golan, a leader in Israel’s opposition bloc, reacted to the news in a statement. Golan, a former deputy military chief, said ending the aid would deal a severe blow to Israel’s security. He noted that the country is currently fighting wars on multiple fronts. Golan said the burden of funding defense needs would fall entirely on the Israeli public.

The shift affects a long-standing financial relationship. In 2016, President Barack Obama signed a 10-year security agreement providing $38 billion to the Israeli military. That agreement required the funds to be spent on American military industries. An academic study published last year estimated that the U.S. provided at least $21.7 billion in military assistance to Israel after the Gaza war began in 2023.