Israel Aid Timeline: Jerusalem Proposes 10-Year Exit

Caretaker Prime Minister Benjamin Netanyahu’s office announced Wednesday that Israel will phase out its reliance on American military aid over the next ten years. This plan diverges from the timeline set by US President Donald Trump, who declared on November 3 that payments would stop before the end of 2026. The statement marks the second official response from Jerusalem since the US president announced the cutoff.

The office framed the proposal as a joint initiative between Netanyahu and Trump. It argued that Israel’s economic growth allows the relationship to shift from financial assistance to a true partnership. The statement referenced Netanyahu’s 1996 pledge to eliminate $1.2 billion in American economic aid, a commitment he said he fulfilled. Officials noted that his economy is now strong enough to follow a similar path with military support.

The office also cited a May interview with CBS’s 60 Minutes, where Netanyahu outlined his intention to reduce American financial aid gradually to zero. This approach stands in contrast to the remaining weeks of 2026, during which Trump expects the aid to cease. The administration’s position emphasizes a long-term transition rather than an immediate halt.

US Secretary of State Marco Rubio echoed the US perspective earlier this week. He stated that Trump believes Israel has sufficient wealth to purchase American weapons without relying on aid. Rubio added that Israel could stop receiving assistance by the end of the year if it chose to do so. He described the shift as a proposal that originated with the Israelis.

The current 10-year memorandum of understanding provides Israel with $3.8 billion annually. This agreement expires at the end of September 2028. Trump used a figure of $4 billion per year when he announced the payments would cease before the end of 2026. The announcement reportedly surprised Israeli security and financial officials.

Speaking by phone to Fox News, Trump said he and Netanyahu reached an agreement months earlier to stop the payments. He portrayed Israel as a successful country that no longer needed the money. Trump praised Israel as an ally and said the United States would help if it needed assistance. He made the announcement on the morning of the US congressional midterm elections amid controversy over aid in both American political parties.

In its initial response on November 6, Netanyahu’s office did not deny the US president’s announcement. It emphasized the bipartisan history of US military aid. Wednesday’s statement again stressed the strength of the alliance while explicitly describing the withdrawal from aid as gradual.