Netanyahu Proposed Phased Aid Cut, Trump Claims Agreement on Aid End

Negotiations between Israel and the United States regarding a new security agreement for the next decade are ongoing, centered on a proposal by Israeli Prime Minister Benjamin Netanyahu to gradually reduce and eventually halt direct U.S. aid over ten years. This contrasts with U.S. President Donald Trump's recent announcement on Fox News that aid would cease by the end of 2026. Israeli Channel 12 reported that negotiations are proceeding slowly and are far from an agreement.

Netanyahu's office has not commented on Trump's declaration. The initiative reportedly began in December 2025 when Netanyahu met Trump in Florida and proposed a gradual phase-out of direct U.S. grants, reaching zero within a decade. Trump was reportedly surprised, stating his support for providing aid to Israel. Former Israeli Minister Ron Dermer advised Netanyahu to present this initiative, contrary to the counsel of former National Security Advisor Yaakov Nagel, who managed the current aid agreement negotiations.

The proposed new agreement envisions reducing direct U.S. grants compared to the previous deal. Funds saved would be redirected to joint investments in research and development for security, intelligence, and military technology. The goal is not to end U.S. security cooperation and funding entirely, but to transform its nature from direct grants to joint projects.

A significant obstacle to Trump's announcement is the current Memorandum of Understanding, which extends until the end of 2028 and provides Israel with $3.8 billion annually. U.S. Congress budgets for 2027 and 2028 are expected to include these funds, with Congress holding the authority to approve or halt financing. Ending aid before the current agreement concludes would be a major step, given broad bipartisan support for continued aid in both the House and Senate, and it conflicts with the understanding reached during former President Barack Obama's administration.

Channel 12 suggested that if Democrats gain electoral advantages, they might seek to impose restrictions on Israel's use of U.S. military aid rather than ending it completely. Trump's remarks reportedly stemmed from a question about the stance of a Democratic candidate for the Michigan Senate, who has repeatedly expressed support for halting U.S. security aid to Israel. Trump dismissed the candidate's position, claiming he had already agreed with Netanyahu to end aid. Trump had previously stated Israel no longer needed the aid due to its economic prosperity, while affirming Washington's willingness to assist if needed.

However, the details of the negotiations indicate a fundamental disagreement between Trump's timeline and Netanyahu's proposal. The two sides have not yet reached a new agreement defining the amount and nature of U.S. funding for the next decade.