President Donald Trump announced Tuesday during a morning appearance on Fox News that the United States will terminate its historic $3.8 billion annual security assistance package to Israel by December 31, ending the ten-year bilateral agreement two years ahead of its scheduled 2028 expiration.
​Speaking on Fox & Friends as midterm election voting got underway across the nation, Trump stated that Washington and Jerusalem had previously reached a mutual understanding to phase out the financial transfers.
“Bibi Netanyahu and I made a deal that we give Israel $4 billion a year, and we made a deal months ago that we’re stopping,” Trump said during the broadcast, framing the move as a recognition of Israel’s economic self-reliance.
He added that Israel remains “a very thriving country” capable of purchasing its own defense equipment independently, though he stressed that Washington would step in to assist if extraordinary circumstances required it.
​The bilateral Memorandum of Understanding, signed in 2016 and implemented in 2018 under the Obama administration, committed the U.S. to providing $38 billion over a decade.
The annual funding structure allocates $3.3 billion in Foreign Military Financing grants to purchase U.S. military hardware alongside $500 million dedicated to joint missile defense initiatives, including the Iron Dome and David’s Sling programs. By moving the terminal date from late 2028 to December 31 of this year, the decision leaves two full years of authorized funding unappropriated.
​During the interview, Trump linked the decision to domestic political rhetoric surrounding American foreign assistance, specifically pointing to attacks from left-wing critics of military aid such as Democratic Senate candidate Abdul El-Sayed.
Trump asserted that Israeli Prime Minister Benjamin Netanyahu himself brought up the idea of ending the transfers to eliminate political friction over U.S. taxpayer support.
While Netanyahu’s office did not immediately issue a formal public confirmation of the agreement, the prime minister has previously signaled an interest in long-term military self-reliance.
​The announcement drew sharp opposition from political figures in Jerusalem. Yair Golan, chairman of Israel’s Democrats party, released a statement on X condemning the decision as a severe blow to national security at a time when defense expenditures remain elevated.
Golan argued that cutting off foreign funding will force the Israeli public to shoulder the financial burden of replenishing munitions and maintaining air defense readiness, declaring that a responsible leader would fight to preserve aid rather than dismantle it.
​Defence policy experts noted that while Israel will retain access to purchase advanced American military hardware through standard foreign military sales, terminating the grant framework requires the Israel Defense Forces to rapidly restructure long-term procurement budgets for air defense interceptors and tactical platforms.
Given that U.S. military assistance is subject to Congressional appropriations, lawmakers in Washington are expected to scrutinize the administration’s plan for winding down the package ahead of the end-of-year deadline.
