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By Ellie Cook
Senior Defense Reporter
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President Donald Trump has said the United States will stop sending funding packages to Israel by the end of 2026 after making a deal with the embattled Israeli Prime Minister Benjamin Netanyahu.
Trump said he had agreed with Netanyahu "months ago" that the U.S. is "stopping" roughly $4 billion in aid destined for Israel each year, adding during an appearance on Fox News' Fox and Friends on Tuesday the two leaders had committed to a cut-off at the end of this year.
Trump didn't specify the type of funding to which he was referring but said the U.S. would still assist Israel if needed and would sell arms to the country.
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The U.S. currently provides Israel with roughly $3.8 billion in military aid each year, but the memorandum of understanding signed under former President Barack Obama outlining this commitment is due to lapse in 2028. As part of the deal, Israel was to eventually spend all the funds with U.S. defense firms.
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Netanyahu said earlier this year he hoped to wean Israel off U.S. military aid entirely, but said the process would likely happen over a decade.
There has been no immediate comment from Netanyahu's office on Tuesday as Israeli media reported the announcement had caught officials by surprise.
The move could curb growing criticism of Israel in Washington D.C., particularly over the war in Gaza, at a moment when Israel's economy is gaining strength, while lessening American control over future Israeli military operations.
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Israel's economy has grown in the past few years, and its defense industry has boomed throughout the conflicts Israel has fought since 2023.
And despite close personal ties between Trump and Netanyahu, questions have grown in both the U.S. and Israel about just how intertwined the two nations should be and the dynamics of power baked in to the relationship.
The deepening unpopularity of the U.S. and Israeli war against Iran among lawmakers and the American public put these concerns in even sharper relief, with recent reports claiming Netanyahu was leaning on Trump to restart attacks against Tehran after Tuesday's U.S. midterm elections.
Trump said the billions of dollars flowing to Israel annually had been used as a political tool by prominent Democrats, including Michigan Senate candidate Abdul El-Sayed, to critique U.S. links with Israel.
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