Key facts
- Trump said the roughly $4 billion a year in direct military funding to Israel would be cut off by the end of the year.
- Latin Times reported grants stop starting in 2027, about a year before the 2016 memorandum's September 2028 expiry.
- Trump said arms sales continue, with Israel able to buy F-35 jets and missile defense systems through foreign military sales.
- Trump said Netanyahu first raised the idea and the two had discussed it for a couple of years.
- Israel's Defense Ministry said formal talks on a new security cooperation framework had already begun, per Latin Times.
President Donald Trump said the United States will end roughly $4 billion a year in direct military grants to Israel, announcing the move in a Fox News interview on November 3, 2026, the Tuesday before the November 6 report date. The primary report describes the close defense relationship being restructured over the coming two years, with direct annual military aid phased out in favor of joint weapons technology programs.
Latin Times reported that grants stop starting in 2027, cutting short a 10-year memorandum of understanding signed in 2016 that runs through September 2028. Under that arrangement the US provides Israel $3.8 billion a year: $3.3 billion in foreign military financing, earmarked mainly for American-made defense hardware, and $500 million for cooperative missile defense including contributions to Iron Dome. Moving the cutoff to 2027 would end the program about a year early.
Trump said arms sales are unaffected and Israel can keep buying American equipment, including F-35 jets and missile defense systems, through standard foreign military sales channels. "You can consider it barter. You can consider military aid or cash," Trump told the network, adding that Israel no longer needs the funds. He said Prime Minister Benjamin Netanyahu had first raised the idea and that the two had been discussing it for a couple of years.
Latin Times reported that Netanyahu signaled the shift publicly before the announcement, telling The Economist in January 2026 he wanted to taper off American military aid within the decade and CBS in May 2026 that he hoped to bring US financial support to zero. Israel's Defense Ministry said formal talks between both governments on a new security cooperation framework had already begun, according to Latin Times.