Trump Says US Will End $4 Billion Annual Aid To Israel From 2027, But Arms Sales Will Continue

 

The United States will stop providing around $4 billion in annual aid to Israel from 2027, President Donald Trump said on Tuesday, November 3, 2026, while making it clear that Washington will continue to sell arms to its closest ally in the Middle East. The announcement, made during a phone call to Fox News Channel on the day Americans voted in the midterm elections, marks a major shift in one of the world's longest-running military assistance relationships.

Trump said Israeli Prime Minister Benjamin Netanyahu had himself raised the idea, and that the two leaders have discussed it for a couple of years. 'Look, we give them $4 billion of things and money, and they don't need it,' Trump said. 'I was approached by Bibi Netanyahu, and we've been talking about it for a couple of years because it's a lot of money.'

What Trump Announced

Under the plan described by Trump, the yearly financial assistance would end after 2026. Instead of receiving aid, Israel would buy American military equipment directly. Trump described the change in simple terms, saying, 'You can consider it barter. You can consider military aid or cash.'

He also stressed that the end of annual payments would not mean the end of American support. 'We've already agreed that by the end of this year we won't be paying Israel. Now we'll help Israel if they need it,' Trump said, according to reports of the interview. There was no immediate comment from Netanyahu's office following the announcement.

The Existing $38 Billion Agreement

The announcement raises questions about the current security assistance arrangement between the two countries. In September 2016, the United States signed a 10-year memorandum of understanding committing $38 billion in military aid to Israel for the years 2019 to 2028.

That package works out to about $3.8 billion a year, made up of $3.3 billion in Foreign Military Financing and $500 million for joint missile defence programmes. Trump's $4 billion figure is therefore a rounded version of the precise annual amount. If the aid ends in 2027 as announced, it would stop around two years before the existing agreement is due to expire.

Netanyahu has previously spoken about reducing Israel's dependence on American assistance over time.

What Remains Unclear

For now, several important details are still missing. The announcement has not been accompanied by a formal White House directive, an executive order, or a publicly disclosed agreement with Netanyahu. It is also not yet clear exactly which categories of funding would be discontinued, or how the change would be handled legally while the current memorandum runs until 2028.

The scale of past assistance underlines why the decision matters. Studies published last year estimated that the United States provided at least $21.7 billion in military assistance to Israel after the start of the Gaza war in 2023, across both the Biden and Trump administrations. The shift from grants to purchases would therefore change not just the amount of money involved, but the entire financial structure of the defence relationship.

Conclusion

Whether the plan is implemented exactly as described will become clearer in the coming weeks, when officials explain how the funding will be wound down and what replaces it. What is certain is that the announcement signals a new phase in the US-Israel partnership: one built more on commercial arms sales than on annual aid cheques.

Do you think ending annual aid while continuing arms sales is the right balance for the US-Israel relationship? Share your view in the comments.