Trump ends Israel aid package early

President Donald Trump announced on Tuesday that the United States will cease providing $4 billion in aid to Israel at the close of the year.

Speaking on Fox News, the president stated that the termination stems from the belief that Israel no longer requires the financial support. He described the aid as a political liability for Republicans, noting that Democrats frequently use the funding level as a campaign talking point.

The current funding structure is based on a 10-year memorandum of understanding signed in 2018. This agreement allocates $3.8 billion in military assistance annually. The existing contract is scheduled to expire in 2028. Trump indicated he intends to end the arrangement before that deadline. The funds are typically used by Israel to purchase American weapons, directing the money toward US defense manufacturers.

The president claimed to have reached an agreement with Israeli Prime Minister Benjamin Netanyahu regarding the change. He said he would maintain the aid if Israel expressed a need for it, but he characterized the current situation as one where the country can purchase whatever it wants.

Netanyahu has previously voiced support for ending US military aid, though he had not previously specified such a short timeline. In May, the two nations began formal negotiations for a new agreement to replace the current memorandum. It is not yet clear if a framework for that new deal exists.

The announcement followed an Israeli election held one week prior, during which Trump endorsed Netanyahu. The last confirmed communication between the two leaders was a phone call on Saturday. It is unclear if they have spoken since that time. The White House and Netanyahu’s office did not immediately confirm new conversations.

Yair Golan, a retired military deputy chief of staff and head of Israel’s left-wing Democrats party, called the decision a major failure. He argued that a responsible leader would have sought to increase American aid rather than eliminate it. Golan stated that the move deepens a security and economic crisis for the country.

Anshel Pfeffer, a journalist and biographer of Netanyahu, described the abrupt end of aid as a personal setback for the prime minister and Ron Dermer. Dermer manages the relationship with the US administration. Pfeffer said the pair has overseen a dramatic decline in relations between the two nations.

Trump’s administration previously authorized a $4 billion military aid package in March 2025. That approval came after the collapse of a second Gaza ceasefire. When asked by reporters on Tuesday whether the cut refers to military aid or cash, Trump said the definition is flexible. He described the arrangement as a form of barter involving money and goods.