Trump announces end of $4 billion annual aid to Israel

President Donald Trump announced on Tuesday that the United States will cease providing $4 billion in annual aid to Israel beginning in 2027. Speaking on Fox News during a phone interview on Election Day, the Republican president stated that the country will instead purchase military hardware directly from the United States. Trump described the shift as a move to barter or purchase equipment rather than receive cash or goods.

Trump said Israeli Prime Minister Benjamin Netanyahu initiated the conversation about the change. The two leaders have discussed the matter for a couple of years, according to the president. Trump argued that the current aid package represents a large expense for the U.S. and that Israel no longer requires the financial support. He noted that the payment has become a frequent target for political opponents, including Michigan U.S. Senate candidate Abdul El-Sayed. Trump called the aid an easy target for critics who view the relationship as unfair.

Israeli opposition leader Yair Golan responded to the announcement with caution. Golan, a former deputy military chief, stated in a written statement that ending U.S. military aid would deliver a severe blow to Israel’s security. He said the financial burden of defense would fall entirely on the Israeli public at a time when the country is fighting wars on multiple fronts. Netanyahu’s office did not provide immediate comment on the news.

The United States has transferred tens of billions of dollars in military aid to Israel over the last several years. In 2016, President Barack Obama signed a security agreement that provided $38 billion to the Israeli military over a decade. That deal, worth $3.8 billion annually, required the funds to be spent on American military industries. Netanyahu has previously expressed a desire to taper off this aid, telling The Economist in January that such a change was in the works.

An academic study published last year estimated that the U.S. provided at least $21.7 billion in military assistance to Israel after the start of the Gaza war in 2023. The report was released on the second anniversary of the Oct. 7, 2023, Hamas attacks. Another study by the Costs of War project at Brown University found that the U.S. spent roughly $10 billion more on security aid and operations in the broader Middle East in the previous two years. These figures rely on open source materials for their findings.

The change in aid policy interacts with existing obligations under the Camp David peace accords with Egypt. Those agreements require the United States to support both Israel and Egypt with security assistance. Much of the current assistance takes the form of foreign military financing, which allows Israel to buy American-produced weaponry. This structure ensures that funds are recycled back into the U.S. economy. If Israel does not purchase the same amount of American materiel, U.S. defense contractors may face financial impacts.