Trump says U.S. will end $4 billion annual aid to Israel by end of year

President Donald Trump announced on Tuesday that the United States will stop providing $4 billion in annual funding to Israel after the end of this year.

Speaking to Fox News’ Fox and Friends, Trump stated that he and Israeli Prime Minister Benjamin Netanyahu had reached a deal regarding the cessation of the funds. "We’ve already agreed that by the end of this year we won’t be paying Israel," Trump said. He added, "Now we’ll help Israel if they need it."

Details of the Proposed Funding Cut

Trump characterized the $4 billion in assistance as consisting of "things and money," noting it could be considered "barter," "military aid or cash." He argued that Israel is a "very thriving country" and no longer requires the assistance.

According to Trump, the decision is also influenced by domestic politics. He stated, "The left uses the $4 billion payment that everybody knows about, well it’s no secret, as a signal of unfairness, and we can’t allow that to happen."

While direct aid is set to be cut, Trump emphasized that Israel can continue to purchase American military equipment. "They can buy whatever they want," Trump said.

Existing Agreements and Israeli Reactions

A memorandum of understanding currently provides $3.8 billion in annual U.S. military aid to Israel and is approaching its expiration date in 2028. While Trump indicated the cuts would occur by the end of this year, analysts noted that Congress holds authority over the distribution and release of these funds through annual appropriations bills.

Israeli political figures expressed varying views on the announcement:

• Yair Golan, a leader in Israel’s opposition bloc, stated that an end to U.S. military aid would deal a "severe blow to Israel’s security."
• Gadi Eisenkot, a former military chief, criticized the lack of communication, stating, "The fact that Israel’s defense establishment is learning of a shift in our strategic relationship through the media... shows just how dangerous Benjamin Netanyahu’s conduct is."

Netanyahu has previously expressed a desire to reduce reliance on U.S. aid. In a June letter to a U.S. congressman, he wrote that the time had come for Israel "to move from aid recipient to partner."

Why it matters

The announcement, made on Election Day for the 2026 midterm elections, introduces significant uncertainty regarding the long-term financial and military relationship between the United States and Israel. The shift could impact American defense contractors if Israel transitions from receiving grants to purchasing equipment through commercial means.

---

Sources

• huffpost.com: Trump Claims U.S. Will Stop $4 Billion Funding To Israel At End Of 2026 | HuffPost Latest News
• foxnews.com: Trump says US annual military aid to Israel ends by close of year | Fox News
• latimes.com: U.S. to halt $4 billion in annual aid to Israel, Trump says - Los Angeles Times
• stl.news: Trump Announces End to $4 Billion in Israel Aid - STL.News

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.