Israel to Phase Out US Military Aid, Netanyahu Clarifies

The office of Israeli Prime Minister Benjamin Netanyahu announced on Wednesday, November 11, that the United States will gradually phase out military aid to Israel. This clarification follows a November 3, 2026, announcement by U.S. President Donald Trump, who stated he had agreed with Netanyahu to end American military assistance to the Jewish state. According to Ynet, the aid will be halved and payments will cease within five years, though Netanyahu's office did not specify an exact timeline. Both sides aim to finalize a new agreement by the end of 2026, before the new U.S. Congress convenes in January 2027. Negotiations are being conducted by teams led by Secretary of State Marco Rubio on the U.S. side and representatives from Israel's Ministry of Defense and its embassy in Washington on the Israeli side.

Ynet reports that the U.S. may increase funding for air defense system development, currently at $500 million annually, though the new amount is undisclosed. Trump's initial announcement surprised Israel's Treasury, Defense Ministry, and the IDF, as these bodies were not informed in advance. Trump had told Fox News that Israel agreed to the move and no longer needed U.S. aid. Previously, Netanyahu's office stated that Israel's economy was strong enough to gradually forgo U.S. military aid, framing it as a transition from aid to partnership. They recalled that in 1996, Netanyahu initiated a gradual reduction of U.S. financial aid, then totaling $1.2 billion, a promise he fulfilled. In May 2026, Netanyahu told CBS's "60 Minutes" that he intended to reduce U.S. aid to zero over time. Rubio confirmed this week in Paris that the initiative originated from Israel. Of the $3.8 billion in annual U.S. aid, $3.3 billion was allocated for purchasing U.S. military equipment, including aircraft and munitions, with Israel previously permitted to use some funds for domestic purchases. An additional $500 million annually funded joint research, development, and production of missile defense systems like Iron Dome, David's Sling, and Arrow. Discussions are ongoing regarding increasing this amount due to rising threats from rockets and drones.