Netanyahu Clarifies US Aid Will Be Phased Out, Contradicting Trump's Announcement

Ten days after U.S. President Donald Trump announced the cessation of American aid to Israel, Prime Minister Benjamin Netanyahu's office issued a statement indicating the aid will be gradually phased out, not abruptly ended. This clarification, as previously reported, aims to temper expectations in the U.S. for an immediate halt to the assistance.

The Prime Minister's office stated that Netanyahu had previously committed to gradually phasing out financial aid in 1996 and is now applying the same principle to military aid, asserting that Israel's economy is robust enough to transition from aid to partnership. This approach was reportedly first outlined by Netanyahu in a May interview with CBS's "60 Minutes," where he expressed a desire to reduce aid to zero over time.

U.S. Secretary of State Marco Rubio confirmed this initiative, stating in Paris that it was a step proposed by Israel itself. The joint move by Netanyahu and Trump is presented as a testament to the strong alliance between the two nations and their ability to adapt to changing circumstances.

Trump's initial surprise announcement about ending military aid had caught Israeli officials in the Ministry of Finance, IDF, and Ministry of Defense off guard. He had described the move as a potential "barter" or a shift in military aid versus cash, suggesting Israel was comfortable with the change.

Negotiations are underway between U.S. teams, reportedly led by representatives of Secretary Rubio, and Israeli officials from the Ministry of Defense and the Israeli Embassy in Washington. The goal is to finalize a new agreement before the new U.S. Congress is sworn in this January. Notably, the U.S. allocation for developing air defense systems is expected to increase from $500 million to an undisclosed sum, reflecting growing challenges from drone and missile threats.

Historically, Israel received $3.8 billion annually, with $3.3 billion designated for Foreign Military Financing (FMF) for purchasing U.S. military equipment. An additional $500 million was dedicated to joint research and development of missile defense systems like Iron Dome and David's Sling. Former Air Force Commander Amiqam Norkin commented that this transition occurs at a peak time for U.S.-Israel military cooperation, emphasizing the need to leverage the situation to strengthen technological partnerships.