04.11.2026 18:40
US President Trump's announcement that he will cut the annual security aid of approximately $4 billion given to Israel at the end of the year caused astonishment in Tel Aviv. According to the Israeli press, the Ministry of Finance had not been informed of the decision in advance; it was stated that the Ministry of Defense's annual loss would reach 12 billion shekels and that the shortfall would be covered by taxpayers. Opposition leader Yair Golan described the cut as a heavy blow to Israel's security.
US President Donald Trump's announcement that the annual security aid of approximately $4 billion provided to Israel will be halted as of the end of this year has had a seismic effect on the Tel Aviv administration, the security bureaucracy and economic circles.
Washington's signal that it is suddenly withdrawing its historical military and financial support brought concerns that it would impose an additional burden of billions of dollars on Israel's Treasury, which is struggling with a budget deficit.
TRUMP: WE WILL NO LONGER GIVE MONEY TO ISRAEL
In his statement to "Fox News" on November 3, Trump had announced that financial aid would be cut based on the agreement he had previously reached with Israeli Prime Minister Benjamin Netanyahu. Saying "We will no longer give money to Israel," Trump added that Israel, as a developed country, did not need this resource, but that American support could be considered in a moment of vital crisis.
NETANYAHU: GET USED TO IT, THIS AID WILL NO LONGER CONTINUE
Netanyahu, drawing attention to the shift in US politics, had previously confirmed the inevitability of the decision with the words "Get used to it, this aid will no longer continue. The problem is not Israel, but that America has changed. This process is over and will end; it is now only a matter of time."
DEFENSE MINISTRY'S LOSS WILL REACH $4 BILLION
The Israeli press reported that the Finance Ministry had not been informed in advance of Trump's decision to cut aid and that the development was met with astonishment at the ministry. It was stated that with the aid cut, the Defense Ministry would suffer an annual loss of approximately 12 billion shekels (about $4 billion) and that the treasury would have to cover this massive budget deficit from taxpayers' pockets. In security and economic circles in Tel Aviv, it was claimed that Trump's ultimate aim was to completely terminate the bilateral security agreement valid until the end of 2028.
"WE NEVER EXPECTED THIS"
A senior security official speaking to Israel's state broadcaster KAN also said, "We did not expect this statement. Especially not today. We are in constant dialogue with the Americans, but we can say that we are surprised," and noted that they would examine the military and financial consequences of the decision, whose official notification had not yet arrived.
"CUTTING AMERICAN AID IS A HEAVY BLOW TO ISRAEL'S SECURITY"
Israeli opposition leader Yair Golan, reacting to Trump's decision, stated that Netanyahu had been saddled with yet another failure. In a statement on his X account, Golan said, "Cutting American aid is a heavy blow to Israel's security and quality of life. At a time when defense spending is at its peak, weapons stockpiles are being replenished and air defense has been worn down after Iranian attacks, the security budget will be placed entirely on the public's shoulders. A responsible prime minister would not cut aid; he would fight to increase it."
MASSIVE $300 BILLION SUPPORT FROM THE US TO ISRAEL SINCE 1948
According to the October 2025 report of the US-based independent think tank Council on Foreign Relations (CFR), the total amount of economic and military aid Israel has received from the US since its founding in 1948 exceeds $300 billion when adjusted for inflation.
In the CFR report, it was noted that Israel has historically been the largest recipient of US foreign aid since its founding. It was stated that Tel Aviv received massive amounts of economic aid between 1971 and 2007, while today nearly all US aid is transferred directly to the financing of the Israeli army.
In the detailed report published by the US State Department in April 2025, it was stated that the current value of bilateral aid provided to Israel since 1948 exceeds $130 billion. The difference in figures between the two institutions stems from CFR using an inflation-adjusted historical calculation, while the State Department uses net current figures.
$16.3 BILLION IN MILITARY AID SINCE THE START OF THE GAZA GENOCIDE
In the CFR report, it was recalled that Israel has for decades used American-made weapons against all its regional rivals and enemies, including Hamas, Hezbollah and Iran. It was also stated that Tel Aviv received emergency weapons shipments during crisis periods from the "strategic stockpiles" the US has deployed on Israeli territory since the 1980s.
Since October 2023, when the attacks on the Gaza Strip began, the Washington administration has provided Israel with at least $16.3 billion in direct military aid through three separate legislative measures it adopted. This budget includes the $8.7 billion package approved in April 2024 and annual allocations of $3.8 billion for 2024 and 2025. Of this total support, $6.7 billion was allocated to missile defense systems.
THE 2028 AGREEMENT AND TRUMP'S EARLY CUT DECISION
According to US State Department data, Israel is the world's number one recipient of US security aid. This military support had been tied to an official framework through a 10-year memorandum of understanding covering 2019-2028.
Under that agreement, the US provided Israel with a total of $3.8 billion each year, $3.3 billion from the Foreign Military Financing (FMF) program and $500 million from joint Missile Defense Programs. The end-of-year cut announced by Trump means ending military aid much earlier than 2028, the normal expiry date of the 10-year agreement in force.
Since fiscal year 2009, the US has transferred $3.4 billion to Israel's missile defense, and $1.3 billion of that amount has been used since 2011 for the procurement and development of the "Iron Dome" system. Through the FMF program, Washington has provided Israel with access to the world's most advanced military technologies, including F-35 fighter jets.
$39.2 BILLION VOLUME
According to US State Department data from April 2025, the total value of 751 active defense procurement cases in force between the two countries under Foreign Military Sales (FMS) reaches $39.2 billion.
The major contracts notified to the US Congress include F-35 fighter jets, CH-53K heavy transport helicopters, KC-46A aerial refueling aircraft and precision-guided munitions.
In addition, between 2018 and 2022, Washington approved the permanent export of defense equipment and services worth more than $12.2 billion to Israel through Direct Commercial Sales (DCS). These sales included aircraft engines, missile systems, rockets, torpedoes, bombs and mines.
Israel has the right to benefit from cash flow financing. It can also use the annual allowance allocated to it under the program to purchase defense equipment, services and training through the Foreign Military Sales (FMS) system, Direct Commercial Sales (DCS) agreements or the Offshore Procurement (OSP) mechanism.
The current memorandum of understanding, under the latest mechanism, allows Israel to use a portion of its annual allowance to purchase Israeli-origin defense equipment instead of US-origin products. In this context, the share that Israel was able to allocate to such purchases reached 25 percent in fiscal year 2019.
HISTORICAL DEVELOPMENT OF BILATERAL AGREEMENTS BETWEEN THE US AND ISRAEL
Military cooperation between the US and Israel is not limited to arms assistance and sales but continues through joint military exercises, research and weapons development activities. Between the two countries are the 1952 Mutual Defense Assistance Agreement, the 1982 General Security of Information Agreement, the 1991 Mutual Logistics Support Agreement, and the 1994 Status of Forces Agreement.
The security agreement first signed between Israel and the US in 1998 was renewed at intervals of approximately 10 years. Under the agreements reached, the US had agreed to provide Israel with $21.3 billion in military aid over the 10-year period in 1998, $32 billion over the 10-year period in 2008, and $38 billion over the 10-year period (2019-2028) in the 2016 agreement. The Washington administration allocated $33 billion of the $38 billion under the 2016 agreement for the purchase of military equipment and $5 billion for missile defense systems.
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