Trump Says US Will End $3.8 Billion in Annual Aid to Israel

US President Donald Trump announced Tuesday that American financial assistance to Israel will end at the close of 2026, saying the decision was reached in agreement with Prime Minister Benjamin Netanyahu.

Speaking in an interview with Fox News, Trump said Netanyahu had proposed ending the annual assistance, which currently amounts to approximately $3.8 billion, arguing that Israel no longer requires financial support on that scale.

“Bibi Netanyahu and I made a deal. A month ago we agreed that we're stopping,” Trump said.

“We gave Israel four billion dollars. We're still giving it, but it will end at the end of the year. They don't need it.”

According to Trump, the decision reflects Israel's economic strength and the growing criticism in the United States over continued financial assistance to the country.

The president argued that Israel receives more American assistance than other countries and that maintaining the payments has raised questions about how US taxpayer funds are allocated.

“Israel is in first place with us. We give them more than anyone else, and they no longer need it,” Trump said.

He emphasized that the decision was not the result of disagreements between Washington and Jerusalem, but rather a mutual understanding reached with Netanyahu.

Despite the planned termination of financial assistance, Trump stressed that the United States would remain committed to supporting Israel when necessary.

“Israel is a great ally,” he said.

The announcement represents a significant potential change in US-Israel relations, particularly given the existing long-term agreement governing American military assistance.

Under a memorandum of understanding signed by the two countries, the United States committed to providing Israel with $38 billion in military assistance over a ten-year period, covering fiscal years 2019 through 2028.

The agreement provides $3.3 billion annually in military financing, along with an additional $500 million each year for joint missile defense programs, including Iron Dome, Arrow, and David's Sling.

The funding is primarily intended to support Israel's purchase of American weapons, ammunition, and other defense equipment. Under the agreement, Israel is also required to spend an increasing proportion of the assistance in the United States.

Trump's announcement raises questions about how the existing agreement will be affected and what arrangements, if any, will replace the current annual military assistance after 2026.