Trump says US will switch $4 billion Israel aid to arms sales

President Donald Trump announced on Tuesday that the United States will end its annual $4 billion aid package to Israel beginning in 2027.

Instead of providing the funds as general assistance, the U.S. Will sell military equipment to the country. Trump made the announcement during a phone interview Channel on Election Day for the midterm elections.

The shift in policy moves the relationship from a grant model to a commercial transaction. Trump described the new arrangement as a form of barter, where Israel pays for the goods rather than receiving them as a gift. He stated that the Israeli Prime Minister, Benjamin Netanyahu, had approached him regarding this change. Trump noted that the two leaders have discussed the possibility for a couple of years.

Trump argued that the current level of spending is substantial for the American taxpayer. He observed that U.S. Aid to Israel has become a frequent topic in political campaigns, specifically mentioning Michigan Senate candidate Abdul El-Sayed. Trump said the aid is no longer necessary for Israel. His office did not immediately issue a separate statement, but the president’s comments to the news outlet provided the details of the plan. Netanyahu’s office also did not provide an immediate comment on the announcement.

The $4 billion figure represents the baseline annual military assistance the U.S. Has provided to its Middle East ally. This announcement comes after a period of increased financial support for Israel. An academic study released last year found that the U.S. Provided at least $21.7 billion in military assistance to Israel after the Gaza war began in 2023. That study was published on the second anniversary of the Hamas attacks that started the conflict.

A separate report from the Costs of War project at Brown University’s Watson School of International and Public Affairs also came out last year. That report estimated the U.S. Spent roughly $10 billion more on security aid and operations in the broader Middle East over the previous two years. Both studies relied on open source material to create detailed accounts of American military involvement and financial commitments in the region.