Trump Announces End of $4 Billion Annual Aid to Israel in 2027

President Donald Trump announced on Tuesday that the United States will stop providing $4 billion in annual aid to Israel starting in 2027.

Speaking by phone on Fox News Channel during Election Day, the president said Israel will continue to purchase American weapons instead. Trump stated that Israeli Prime Minister Benjamin Netanyahu approached him with the idea and that the two leaders have discussed the plan for a couple of years. The president argued that the money is no longer necessary for Israel and that it has become a talking point for Democratic candidates, including Michigan Senate candidate Abdul El-Sayed.

The current aid structure stems from a security agreement signed by President Barack Obama in 2016. That deal committed the U.S. to providing $38 billion over ten years, or $3.8 billion annually. The agreement requires Israel to spend the funds on American military products, a practice that is gradually phasing out the use of funds for Israeli-made items. Netanyahu told The Economist in January that he wanted to taper off the aid over the next decade.

Israeli opposition leaders reacted quickly to the news. Gadi Eisenkot, a former military chief and Netanyahu’s chief rival, criticized the prime minister for letting the public and defense establishment learn of the strategic shift through media reports. Yair Golan, a leader in the opposition bloc, warned that ending the aid would deal a severe blow to Israel’s security. Golan noted that the burden of funding defense needs will fall entirely on the Israeli public while the country fights wars on multiple fronts. Netanyahu’s office had not commented as of Tuesday evening, though the prime minister posted on social media about unrelated election interference allegations.

Analysts question the timing of the announcement. David Schenker, who served as Trump’s top diplomat for the Middle East in his first term, said the move is unlikely to sway midterm voters. He noted that changing the aid structure is complex because of obligations under the Camp David peace accords with Egypt. Those accords require the U.S. to provide security assistance to both Israel and Egypt.

The 2027 National Defense Authorization Act contains a provision to expand U.S. and Israeli cooperation on defense technology. The bill has not yet been approved by Congress. Rep. Ro Khanna, a California Democrat on the House Armed Services Committee, criticized the provision, arguing that deeper military integration would cause the U.S. to lose sovereignty. A person familiar with diplomatic discussions said Israeli officials worry about giving up intellectual property while still facing U.S. constraints.

Trump said the arrangement can be viewed as barter. He added that he and Netanyahu agreed on the plan because it is too easy a target for political criticism. The current memorandum of understanding is not set to expire until 2028, and Congress will have a large say in any wind-down of the funds.