Even if the US fulfills the current aid agreement in its entirety through 2028, Israel will still require about $10 billion more to cover orders for US weaponry that have already been placed, "The Wall Street Journal" reports, citing a letter from the State Department to Congress. These refer to orders that were outstanding as of April 1, over and above the aid funds already pledged.
In a letter to Congressman Joaquin Castro, the State Department noted that funding for these orders could come from US aid, from Israel’s own funds, or from a combination of both. This is due to a mechanism that allows Israel to commit to multi-year orders based on future aid allocations. Consequently, a cessation of aid would not eliminate the obligations already incurred but rather, it would sharpen the question of who will pay for them.
The report follows comments made by President Trump to Fox News, in which he stated that he and Israeli prime Minister Benjamin Netanyahu had agreed to end aid to Israel. Trump claimed that this agreement was reached months ago and that Israel does not need US funds. However, he did not specify when such a termination would take effect, nor whether it would apply to all components of the aid package. His remarks do not, in themselves, constitute an announcement that such a termination has already been implemented.
The military aid being received by Israel amounts to $3.8 billion annually, under a Memorandum of Understanding (MOU) signed in 2016 between the Obama administration and Israel, covering 2019-2028. Of this annual sum, $3.3 billion is earmarked for military procurement, and $500 million for missile defense. This represents a $38 billion framework for the decade, with the actual allocation of funds subject to annual congressional budget approval.
Netanyahu has previously expressed a desire to gradually reduce dependence on US aid and phase it out within a decade, while expanding defense and technological cooperation. However, alongside discussions on security independence and relations with Washington, "The Wall Street Journal" highlights existing financial commitments. Even the full implementation of the current aid agreement will not cover all outstanding orders while replacing US funding with Israeli capital would shift the burden onto the domestic budget.
Published by Globes, Israel business news - en.globes.co.il - on November 5, 2026.
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