US-Israel Aid: Rubio says Trump wants financing to end soon
The Secretary of State stated at the G7 that the US President believes Israel can now purchase weapons without financial assistance.
By Lorenzo Marshall ·
US military aid to Israel has historically been the largest such package Washington provides to any foreign nation, but the terms of that support may change before the current agreement expires. US Secretary of State Marco Rubio told reporters in Paris on Monday that President Donald Trump believes Israel is financially stable enough to buy American weapons without relying on federal subsidies. Rubio stated that the President wants to conclude the financing portion of the arrangement as quickly as possible.
The current ten-year memorandum of understanding, signed in 2019, allocates $3.8 billion annually to Israel. That agreement runs until the end of September 2028. However, Trump declared last week that an agreement exists to cease the aid by the end of this year. That timeline surprised many senior officials on both sides of the Atlantic. Trump suggested he wished to prevent critics from arguing that Washington favors Israel over other partners.
Rubio said Israel can certainly exit the aid program by year's end if it chooses. He noted that the two countries could negotiate a timeline for a new memorandum. The new deal would likely involve co-production of weaponry, according to the Secretary. He emphasized that the President wants to move forward with this shift immediately.
Prime Minister Benjamin Netanyahu indicated earlier in 2026 that he aimed to reduce Israel's dependence on US aid over a ten-year period. The current administration appears to be accelerating that timeline. The discrepancy between the existing contract and the President's recent comments creates a gap that diplomats must now bridge.
Since 1948, the United States has provided Israel with more than $300 billion in economic and military assistance, adjusted for inflation. The Council on Foreign Relations reports that no other country has received more aid from Washington since 1946. A 1979 US-brokered peace treaty between Israel and Egypt also committed the US to providing billions in military assistance to both nations each year.
Israel's defense budget has grown substantially in recent years. Under the 2025 budget, the Defense Ministry received a record NIS 110 billion, or $29 billion, out of a total national defense budget of NIS 136 billion, or $36.9 billion. This growth has reduced the percentage of military spending that relies on US funds. The current memorandum requires most aid money to be spent on US-manufactured weapons.
Frustrations during the Gaza war also contributed to Israel's desire to end the aid package. Several allies, including the Biden administration, paused arms supplies due to concerns about civilian harm from specific munitions. The next step involves negotiating the specific terms and timeline for the new agreement between the two governments.
