The United States has been planning for months to reduce its annual aid to Israel by nearly $4 billion, a move that comes as President Trump navigates the consequences of the war against Iran. The withdrawal, announced by Trump on Tuesday, is part of ongoing negotiations over a Memorandum of Understanding (MOU) that is set to expire in fiscal year 2028.
An administration official told The Post that the plan to reframe the MOU and reduce direct aid has been in development for months, with President Trump accelerating these plans. Israel has reportedly suggested phasing down direct U.S. aid, primarily Foreign Military Financing (FMF), with a potential complete cessation by the start of fiscal year 2027, depending on Israeli agreement to a swifter reduction.
Trump stated on Tuesday that Israel no longer requires the aid, asserting that "we give them more than anybody else, and they no longer need it." He added that Israeli Prime Minister Benjamin Netanyahu had previously suggested that it would be appropriate to cease receiving aid, recognizing it as a point of contention.
The announcement follows a challenging midterm election for Republicans, which saw Democrats regain control of Congress. Both Trump and Vice President JD Vance have acknowledged that the U.S. decision to engage in conflict with Iran may have alienated voters. Trump, in a Tuesday night interview with The Wall Street Journal, indicated that the war with Iran was a factor in the election results but defended the action as necessary to prevent Iran from acquiring nuclear weapons.
In Israel, the news of the potential aid shift drew criticism from political opponents. Gadi Eisenkot, a rival of Prime Minister Netanyahu, stated that the defense establishment learning of the change through media reports was indicative of dangerous conduct. Yair Golan, another opponent, warned that the decision would significantly harm Israel's security.
Any significant alteration to the aid package would require congressional approval. Representatives for Republican leaders on House and Senate committees overseeing foreign affairs did not immediately respond to requests for comment. The existing MOU, signed in 2016, provides Israel with $38 billion in military aid over a decade, averaging approximately $3.8 billion annually.