US to end $4 billion annual military aid to Israel in 2027, says Trump
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US President Donald Trump has said Washington will stop providing $4 billion in annual aid to Israel from 2027, with the two countries shifting towards a military procurement arrangement.
Speaking to Fox News on Tuesday, Trump said Israeli Prime Minister Benjamin Netanyahu had approached him about ending the aid, and that they had discussed the proposal for a couple of years.
Trump argued that Israel did not need the money and that the payments had become an easy target for political criticism in the US. He cited Democratic Senate candidate Abdul El-Sayed, a vocal critic of Israel, and said the issue was being used to question the fairness of American support.
“You can consider it barter. You can consider military aid or cash,” Trump said.
There was no immediate response from Netanyahu's office.
Israeli opposition leaders, however, expressed concern over the announcement. Former military chief Gadi Eisenkot called on Netanyahu to explain the reported shift, while opposition leader Yair Golan warned that ending US aid would deal a “severe blow to Israel’s security”.
The US and Israel signed a 10-year security agreement in 2016 under which Washington committed $38 billion in military assistance, amounting to $3.8 billion annually. Much of the funding is required to be spent on American-made weapons, supporting US defence manufacturers.
Netanyahu had previously spoken about gradually reducing Israel's dependence on American aid. In January, he told The Economist that he wanted to “taper off” military assistance over the next decade.
However, any change would involve Congress and existing US commitments under the Camp David peace accords with Egypt. A proposed provision in the 2027 National Defence Authorisation Act would expand cooperation between the two countries on defence technology, but the legislation has not yet been approved.
The announcement also raises questions about future weapons deliveries and the impact on US defence contractors. Existing orders could continue for years, as military equipment often takes years to manufacture and deliver.
A study published last year estimated that the US provided at least $21.7 billion in military assistance to Israel after the Gaza war began in October 2023, under the Biden and Trump administrations.