U.S. and Israel Negotiate Phased Reduction of Military Aid Over Five Years
A new U.S.-Israel security memorandum outlines a 50% reduction in military aid over five years following 2028, shifting toward a partnership model while increasing joint air defense funding.
A new security memorandum of understanding currently being negotiated between Israel and the United States outlines a phased reduction in American military aid, cutting the current package in half over a five-year period after 2028. According to reports by local media, the emerging framework shifts from traditional aid to a partnership model.
Phased Reduction and Future Framework
Under the previous agreement, Israel received $3.8 billion annually, comprising $3.3 billion in Foreign Military Financing (FMF) for American-made defense equipment and $500 million dedicated to joint missile defense research and development for systems such as Iron Dome, David's Sling, and Arrow. The new proposal envisions reducing the overall military assistance to a total of $16.5 billion spread across five years, after which direct military aid is slated to end entirely. Meanwhile, funding allocated for joint air defense systems is expected to increase significantly to address growing drone and missile threats.
Political Context and Congressional Approval
Negotiations are being led by teams from the U.S. State Department under Secretary of State Marco Rubio and representatives from the Israeli Ministry of Defense and the Israeli Embassy in Washington. Israeli officials initially expressed shock over a recent surprise announcement by U.S. President Donald Trump regarding an immediate halt to assistance, though senior sources assessed the statement was driven by domestic political considerations rather than actual policy shifts. Lawmakers in Washington have also noted that slashing military aid could negatively impact American defense industries located across various U.S. states.
