US to halt $4 billion in aid to Israel as Mideast ally reduces dependence on Washington

WASHINGTON (AP) -- The United States will stop providing $4 billion in aid each year to Israel in 2027 but will continue selling arms to its closest ally in the Middle East, US President Donald Trump said Tuesday.

The Republican president told Fox News Channel during a phone call on midterm Election Day that Israeli Prime Minister Benjamin Netanyahu had approached him about the idea and that they had been discussing it for a couple of years.

Trump said Israel did not need the aid and that it was a lot of money for the US to spend. But he also said US aid to Israel had become a Democratic talking point for candidates such as Michigan US Senate candidate Abdul El-Sayed, a vocal critic of Israel.

Even far-right conservatives who have supported Trump in the past have taken issue with US support for Israel, with prominent commentators like Tucker Carlson openly questioning the value of the relationship.

"You can consider it barter. You can consider military aid or cash," Trump said. "Look, we give them $4 billion of things and money, and they don't need it. And 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."

But if Trump intended the announcement as a last-ditch effort to sway midterm voters, analysts said it likely would not work.

"It's an open question if this was about politics, but it isn't going to change Republican voters, and it certainly isn't going to change Democratic voters," said David Schenker, who served as Trump's top Middle East diplomat during his first term and is now with the Washington Institute for Near East Policy.

Israeli opposition leaders seek answers from Netanyahu

There was no comment from Netanyahu or his office as of Tuesday evening in Israel, several hours after Trump's announcement. The prime minister posted twice on social media but focused on unsubstantiated allegations of foreign interference in Israel's elections rather than Trump's remarks.

At least some of his political opponents were critical.

His chief rival, Gadi Eisenkot, called on the prime minister to address the potentially radical change in US-Israeli relations.

"The fact that Israel's defense establishment is learning of a shift in our strategic relationship through the media, at the same time as the Israeli public, shows just how dangerous Benjamin Netanyahu's conduct is," Eisenkot, a former military chief, said in a statement.

Yair Golan, a leader in Israel's opposition bloc, said an end to US military aid would deal a "severe blow to Israel's security" at a time when the country was fighting wars on multiple fronts.

"The burden of funding defense needs at such a critical juncture will fall entirely upon the Israeli public," Golan, a former deputy military chief, said in a statement.

Tens of billions of dollars in aid to Israel

The United States has sent tens of billions of dollars in military aid to Israel over decades.

In 2016, President Barack Obama signed an unprecedented security agreement with Israel to provide its military with $38 billion over 10 years, amounting to $3.8 billion annually. Under the agreement, Israel's ability to spend part of the funds on Israeli military products was to be phased out, with all the money eventually going to American defense industries.

Netanyahu has previously discussed the need to wean Israel off the aid and said American assistance would end at some point.

He told The Economist in January that he wanted to "taper off" US military aid over the next 10 years and that such a change was "in the works."

Although Trump spoke of ending the aid by the end of 2026, such an abrupt shift would be all but impossible, and Congress will have a major say in what happens. More likely, the current memorandum of understanding could be phased out if Congress agrees, but it remains unclear whether that could happen as early as 2027. The current agreement is not set to expire until 2028.

Behind the scenes, discussions have taken place about restructuring the US-Israel arrangement over the long term into a partnership focused more on defense technology and weapons manufacturing.

The 2027 National Defense Authorization Act includes a provision that would expand US-Israeli cooperation on developing new defense technology and identify opportunities to integrate Israeli defense technology into the US military. The legislation has not yet been approved by Congress.

But some on the Israeli side have expressed concern that such a shift could result in Israel giving up its intellectual property while still facing US restrictions, according to a person familiar with the diplomatic discussions who spoke on condition of anonymity because they were not authorized to comment publicly.

Meanwhile, some critics, including Rep. Ro Khanna, a California Democrat on the House Armed Services Committee, have criticized the provision. Khanna said such integration between the militaries would lead to the US losing sovereignty.

Trump says aid has become an easy political target

The political optics of the aid had also become an issue, according to Trump, who singled out El-Sayed for using it as a talking point.

"The left uses the $4 billion payment -- that everybody knows about, it's no secret -- as a signal of unfairness," Trump said Tuesday on Fox News. "And we can't allow that to happen. I don't like that, because it's too easy. It's almost too easy a target. And Bibi and I have been talking, and we've agreed. He was very understanding of it."

Phasing out direct military and economic aid to Israel has long been debated in both countries and has gained traction in recent years.

"This has been coming for a long time," Schenker said.

Several issues complicate the process, including US obligations to Israel under the Camp David peace accords with Egypt, which require the United States to support both countries with security assistance.

Much of the assistance the US provides Israel comes through foreign military financing, or FMF, which gives Israel funds that must be spent on American-made weapons, meaning the money flows back into the US economy.

Unless Israel plans to spend the same amount on American military equipment, US defense contractors could be affected.

Even if aid were suddenly cut off, previously purchased weapons would continue to be delivered for years because most purchases take years to move from sale to construction and delivery.

"The real question for me is whether weapons deliveries will be affected," Schenker said. "Will Israel be prioritized?"