US and Israel negotiate phased reduction of security assistance
Despite President Trump's claim that aid would end by year's end, the US administration plans to negotiate a phased reduction of security assistance to Israel.
By Ricardo Brooks ·
The administration of US President Donald Trump intends to continue providing security assistance to Israel in the coming years, according to three US and Israeli officials. This plan stands in contrast to Trump’s public declaration on the day of the midterm elections, November 3, 2026, when he stated that Washington would cease such aid by the end of the year.
Negotiations between the two nations have been ongoing for several months regarding a new memorandum of understanding, or MoU, for security assistance. An Israeli official, who spoke on condition of anonymity, explained that the goal is to wind down the current annual aid rate of nearly $4 billion. Various proposals have been discussed, including options to phase out the aid completely within a period of five to ten years.
No final agreement has been reached on the new MoU. The Israeli official acknowledged that Trump’s comments on November 3 caught both sides off guard and have significantly impacted the negotiations. Consequently, Washington is now pushing for a faster wind-down of the aid. During an interview on the morning of the midterms, Trump had noted that Israel had been the party pushing for the end of the assistance.
Prime Minister Benjamin Netanyahu had previously spoken about ending the aid but specified that it should be a gradual process over ten years rather than an immediate cessation. Both governments have framed this shift as a result of Israel’s growing economic strength. However, the move also coincides with a decline in support for Jerusalem among both major US political parties. Some Republicans have criticized Netanyahu for encouraging Trump to launch a war against Iran in February, while Democrats have expressed strong criticism of Israel’s policies in Gaza and the West Bank.
Netanyahu has attributed the drop in support to rising antisemitism and social trends in the United States that are not directly related to Israel. Despite these political dynamics, both sides agreed that a new ten-year deal worth $38 billion, similar to the MoU signed during the Barack Obama presidency, would not be replicated. The Obama-era agreement is set to expire in 2028, but Trump’s recent statements raised questions about whether it would be honored.
A US official indicated that the current obligations under the Obama-era MoU would be met. This is because Israel has signed contracts with American defense firms for the production of weapons in coming years using funds promised in the agreement. Pulling out of these contracts would impose major costs on the American taxpayer, a scenario Washington is seeking to avoid. Accordingly, the current plan is to adhere to the terms of the existing MoU as much as possible.
The US Congress also plays a significant role in this matter, as it controls the appropriation of military aid and is not strictly bound by the MoU. After Democrats took control of Congress in the recent midterms, Hakeem Jeffries, the presumed candidate for House Speaker, reiterated his call for dramatic changes as the MoU winds down. This stance may influence the final two years of the current agreement, as Democrats can now point to a Republican president who supports the idea of reducing aid.
The Israeli official downplayed the likelihood of an immediate end to US aid, noting that Democratic leadership is generally more moderate than the progressive wing. The official also pointed out that the Democratic Party’s new strong majority in both houses makes it harder for progressives to dictate policy. A Democratic congressional aide agreed that the party would not back a complete end to aid but would aim to restrict the sale of offensive weapons. They also plan to uphold conditions that prevent US weapons from being used in violations of US or international humanitarian law.
The aide asserted that the Democratic Party would take a harsher stance in adjudicating the matter than the Biden administration did. The Biden administration had avoided penalizing Israel over the use of American weapons in Gaza, a region where tens of thousands of civilians have been killed in the war that began with Hamas’s attack on October 7, 2023.
In response to the story, the State Department issued a statement attributed to a US official. The statement described Israel as a technologically advanced and wealthy ally with a modern industrial base that will soon no longer require US funding for its defense. The official stated that the bilateral partnership is transforming from one based on security assistance to a full partnership that will benefit American industry, warfighters, and workers. This shift, the official said, is possible due to President Trump’s leadership and will expand the US industrial base while supporting American jobs. Israel will continue to purchase American weapon systems using its own funds, ensuring that all obligations to American defense firms are met.
