The United States and Israel are negotiating annual $3.3 billion military aid payments through 2033, despite President Donald Trump’s announcement that aid to Israel would end this year.
Trump’s sudden announcement that the U.S. would stop sending aid to Israel on the morning of the midterm elections took the world by shock, and brought into question whether such a move could be taken unilaterally so quickly. Within a week of the announcement, Israeli media reported that negotiations were ongoing to continue some aid, under a framework that would keep aid going until at least 2033.
U.S. aid to Israel is dictated by a 2016 memorandum of understanding signed under former President Barack Obama, which set funding levels from fiscal 2019 through 2028, amounting to a total of $38 billion. The majority of this goes through Foreign Military Financing, which provides funds for foreign governments to spend almost exclusively on U.S. weapons produced by defense companies.
The emerging deal envisages a $16.5 billion commitment over five years, keeping the annual FMF aid at a more or less stable total of $3.3 billion per year.
Ynet reported that much of Congress is resistant to the sudden aid cutoff due to the economic implications — the $3.3 billion in annual aid through FMF helps U.S. defense companies, and the sudden cutoff could cost jobs in the U.S. The other $500 million per year helps fund research for missile defense systems, which defenders argue is a mutually beneficial arrangement.
“We are moving here from a model of aid to a model of partnership,” a senior Israeli official told Ynet. “It is important to remember that most of the security assistance remains in America and contributes to the American economy. Cutting it would also hurt American industries and require adjustments.”
The emerging agreement is notable for covering a shorter agreement than Obama’s MOU — five years instead of 10 — possibly signaling Washington and Jerusalem are serious about a gradual cutoff of aid.
Israeli Prime Minister Benjamin Netanyahu’s office more or less confirmed the deal in a Wednesday statement, touting it as an accomplishment and portraying it as a gradual cutoff in aid.
“In 1996, Prime Minister Netanyahu said that Israel would gradually end U.S. financial support of $1.2 billion,” the statement reads. “He did just that.
“Thirty years later, Prime Minister Netanyahu said that Israel is strong enough economically to gradually end military support,” the statement reads. “Today, Israel has a strong and stable economy, and Israel and the United States are making the important move from aid to partnership.”
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The agreement is intended to be finalized by the end of 2026. A bilateral MOU doesn’t require direct congressional approval, but Congress does get oversight through the need to appropriate the aid funding at the end of each year. The current Congress will vote on appropriations before they pass the torch to the next Congress.
While Israeli officials signaled to Ynet that they were confident the deal would pass, they were worried about the future implications. The appropriations bill must be passed every year, setting up a showdown with the Democratic-dominated House and Senate next year.
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[ H/T Washington Examiner ]
