US to End $4 Billion Annual Aid to Israel in 2027, Trump Says

United States President Donald Trump stated on Tuesday that the United States will cease providing 4 billion dollars in annual aid to Israel in 2027. Instead, the administration plans to sell weapons directly to its closest ally in the Middle East. Trump made the announcement during a telephone call to Fox News, which aired on the same day as the United States midterm elections.

The President explained that Israeli Prime Minister Benjamin Netanyahu approached him with the proposal. Trump said the two leaders have discussed the matter for roughly two years. He characterized the change as a trade or a military aid package paid for by Israel. "They can consider it a trade. They can consider it military aid or cash," Trump said. "Look, we're giving them 4 billion dollars in stuff and money, and they don't need it. And Bibi Netanyahu came to me, and we've been talking about it for a couple of years because it's a lot of money."

Trump argued that the aid package has become a frequent target for Democratic candidates. He specifically cited Abdul El-Sayed, a candidate for the United States Senate from Michigan, who has criticized support for Israel. Trump described the 4 billion dollar figure as an open secret that opponents use to signal injustice. "The left uses the 4 billion dollar payment, which everyone knows, it's not a secret, as a sign of injustice," Trump told Fox. "And we can't let that happen. I don't like it because it's too easy. It's almost a too-easy target. And Bibi and I have been talking, and we have been in agreement. He was very understanding about it."

The Israeli government's office did not provide an immediate comment on the announcement. However, political opponents in Israel reacted with caution. Yair Golan, a leader of the Israeli opposition bloc, warned that ending the aid would deliver a severe blow to Israel's security. Golan, a former deputy military chief, noted that the country is currently fighting on multiple fronts. "The burden of financing defense needs at such a critical time will fall entirely on the Israeli public," Golan said in a statement.

The shift marks a change from the 2016 security agreement signed by President Barack Obama. That deal provided the Israeli military with 38 billion dollars over 10 years, equivalent to 3.8 billion dollars annually. Under that arrangement, Israel's ability to spend funds on domestic military products was to be gradually eliminated, ensuring the money eventually flowed to American defense industries. Netanyahu has previously stated that Israel needed to reduce its dependence on this assistance. In January, he told The Economist that he wanted to gradually reduce the aid over the next decade and that the process was already underway.

The transition to a sales model presents logistical and economic complexities. A large portion of current assistance takes the form of foreign military financing, which requires Israel to spend the money on US-made weapons. This structure reinvests the funds directly into the American economy. Unless Israel plans to purchase the same volume of material from US contractors, the American defense industry could see a reduction in revenue. Additionally, the United States has obligations under the Camp David peace accords with Egypt, which require Washington to support both Israel and Egypt with security assistance.

Recent academic research indicates that US support for Israel has increased since the start of the Gaza war in 2023. A study published last year found that the United States provided at least 21.7 billion dollars in military assistance to Israel after the October 7, 2023, Hamas attacks. Another report from Brown University's Costs of War project estimated that the United States spent an additional 10 billion dollars on security aid and operations in the wider Middle East over the preceding two years. These figures represent some of the most comprehensive counts of US military aid to the region using open source materials.