US halts $4 billion annual aid to Israel in December
Prime Minister's Office frames the end of annual transfers as a move toward mutual investment ahead of US midterms.
By Jenna Mitchell ·
American taxpayers will stop sending nearly $4 billion in annual assistance to Israel by the end of 2026, according to an announcement by President Donald Trump. The funds, which have long supported the Israeli military and economy, will no longer be transferred automatically. Instead, Israel will purchase American weapons on the open market and can request additional support if needed.
The Prime Minister's Office described the change on Friday as a transition from aid to a strategic partnership. Doron Spielman, the PMO spokesman, told Fox News that the shift reflects a new model of mutual investment. He stated that while previous aid was important, the current arrangement is the correct next step for the bilateral relationship.
Trump said he reached a verbal agreement with Prime Minister Benjamin Netanyahu several months ago. The deal sets December 2026 as the deadline for the final payment of the annual subsidy. In a telephone interview with Fox & Friends, Trump confirmed that the two leaders agreed to stop the payments by the end of the year. He described the arrangement as a deal between himself and Netanyahu.
The announcement arrived just before the US midterm elections scheduled for Tuesday. Trump told Fox News hosts that the $4 billion figure represented the yearly amount the United States gave to Israel. He said the agreement to stop the payments was made months prior, though he did not specify the exact date of their discussion. When pressed by hosts to define whether the sum covered military aid, direct financial assistance, or weapons deliveries, Trump maintained that the arrangement ends in December without providing further breakdowns.
In a statement posted on X, the PMO characterized the previous aid package as a cross-aisle agreement in the US Congress. The office argued that Israel now possesses a strong and stable economy that can support the new partnership model. The statement suggested that the move demonstrates the strength and sophistication of the relationship between the two nations. It noted that the partnership allows the relationship to adapt and remain stable over time.
The shift removes the automatic nature of the financial support that has defined US-Israel relations for decades. Under the new framework, Israel retains the freedom to buy American weapons. The arrangement also allows for extra assistance if circumstances require it, but the baseline $4 billion transfer will cease after December 2026. The Prime Minister's Office said the transition marks a move toward a more balanced economic relationship.
Trump’s comments on Fox News marked his first public explanation of the change. He referred to Netanyahu by his nickname, Bibi, while describing the terms of the deal. The President said the understanding was reached well in advance of the announcement. The PMO released its statement on Friday, following the interview. The timing places the policy change immediately before the US congressional elections.
