Netanyahu Clarifies Stance on US Military Aid Amid Trump's Remarks

The Prime Minister's Office in Jerusalem issued a statement to clarify remarks made by U.S. President Donald Trump regarding the cessation of American military aid to Israel. The statement emphasized that Prime Minister Benjamin Netanyahu has long advocated for Israel to eventually forgo U.S. financial assistance, a position he first articulated in 1996 regarding financial aid and more recently concerning military support.

According to the Prime Minister's Office, Netanyahu stated in May on "60 Minutes" that Israel's economy is robust enough to phase out military aid. U.S. Secretary of State Marco Rubio reportedly confirmed this initiative originated from the Israeli side during a recent meeting in Paris. The joint step by Netanyahu and Trump is presented as a testament to the strong and adaptable bilateral relationship between the two nations.

This is reportedly the second time Netanyahu's office has had to carefully address Trump's statements, as Trump had recently declared an end to U.S. military aid by the end of the current year. Netanyahu's office, however, is stressing the word "gradually" and framing the situation as a mutually agreed-upon transition. While Netanyahu has indeed spoken of phasing out the annual $3.8 billion in U.S. grants, his vision involved a decade-long transition, not an abrupt halt at the end of 2026.

The clarification aims to signal to Washington, including Congress and the Pentagon, and to international financial markets, thereby preventing panic over a sudden defense budget shortfall. Internally, the move is seen as a political calculation by Netanyahu, seeking to project an image of Israeli self-reliance and independence from U.S. funding, particularly amidst his current political standing.

Sources suggest that aid payments under the current ten-year memorandum of understanding will not cease immediately but will be halved initially, followed by a phased reduction to zero. Military and political commentators note that the transition from aid to partnership reflects ongoing discussions about a new cooperation model, shifting from State Department grants to joint defense development and investments in Israel's defense industry under Pentagon auspices. The current memorandum, signed in 2016, allocates $38 billion over ten years, with $3.3 billion annually for military procurement and $500 million for joint missile defense programs.