Trump: US to stop $4B annual aid to Israel in 2027
The president said on Fox News that the shift allows the US to continue selling arms to its ally while ending direct cash transfers.
By Ryan Davidson ·
President Donald Trump announced on Tuesday that the United States will stop providing $4 billion in annual aid to Israel starting in 2027. The president made the statement during a phone interview with Fox News Channel on Election Day for the midterms. He said the US will continue to sell weapons to the country.
Trump said Israeli Prime Minister Benjamin Netanyahu approached him with the idea. The two leaders have discussed the matter for several years. Trump described the arrangement as a form of barter. He noted that the US gives Israel money and equipment, but the country no longer needs the assistance.
The announcement comes as the US has provided tens of billions of dollars in military aid to Israel over decades. In 2016, President Barack Obama signed a security agreement to give Israel $38 billion over 10 years. That totaled $3.8 billion per year. The deal required Israel to spend the funds on American military industries. Netanyahu has previously stated that he wants to taper off this aid over the next decade.
The current memorandum of understanding does not expire until 2028. Trump spoke of ending the aid by the end of 2026, but analysts say such an abrupt shift is difficult. Congress holds significant power in the process. A wind-down of the current agreement is more likely if the legislature agrees. It remains unclear if this can happen as early as 2027.
The 2027 National Defense Authorization Act includes a provision to expand cooperation on defense technology. The bill aims to integrate Israeli defense technology into the US military. The act 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 US losing sovereignty.
Trump said the aid has become a political talking point for Democratic candidates. He mentioned Michigan U.S. Senate candidate Abdul El-Sayed by name. Trump said the left uses the payment as a signal of unfairness. He said he does not like that it is such an easy target for criticism. Netanyahu said he and Trump agreed on the plan.
Israeli opposition leaders reacted to the news. Gadi Eisenkot, Netanyahu’s chief rival, called on the prime minister to address the shift. Eisenkot said it is dangerous that the defense establishment learned of the change through the media. Yair Golan, a leader in the opposition bloc, said an end to aid would deal a severe blow to security. He said the cost of defense would fall entirely on the Israeli public.
