Fox News' Jesse Watters Describes Israel Aid as 'A Way To Launder Money' Amid Trump's Planned Cuts

Fox News' Jesse Watters has described US military aid to Israel as 'a way to launder money' for American defence contractors, sharpening scrutiny of President Donald Trump's pledge to halt the annual assistance by the end of 2026.

Watters' remarks, highlighted in a clip circulated on X and reported by Knewz, focused on how money allocated to Israel can ultimately be spent with US weapons manufacturers.

'We give them money so they can buy our weapons, so it's kind of like a way to launder money to the defense contractors,' he said.

The comparison is presented as political commentary, not as evidence of criminal money laundering. American military financing is structured to fund purchases of US-made weapons and services, meaning some taxpayer-funded assistance flows back to domestic defence businesses through contracts authorised under US law.

How US Military Aid to Israel Works

Under a security memorandum negotiated in 2016, Israel receives approximately $3.8 billion (€3.41 billion and £2.84 billion) annually through September 2028. That includes $3.3 billion (€2.96 billion and £2.47 billion) in Foreign Military Financing and $500 million (€449 million and £374 million) for joint missile defence programmes.

The financing is largely tied to American suppliers. Israel gains access to US-made aircraft, missiles and other advanced equipment, while US manufacturers benefit from orders supported by federal funds. Ending the grants would not automatically end weapons sales, but it could reduce orders if Israel did not replace the financing itself.

Watters also suggested that some Muslim Americans oppose the assistance because they object to US money supporting military operations against Muslims. His remarks offered no polling establishing how widespread that view is.

Trump's Pledge Raises Questions Over Timeline

Trump made his announcement on 3 November, as Americans voted in the midterm elections. Speaking to 'Fox & Friends', he said the US would stop providing roughly $4 billion (€3.59 billion and £2.99 billion) in annual assistance after 2026.

Trump said assistance 'gets cut off at the end of the year'. He maintained that Israeli Prime Minister Benjamin Netanyahu supported the move and that Israel was prosperous enough to buy its own weapons.

Netanyahu's office responded on 6 November by describing a transition 'from aid to partnership'. It did not deny Trump's account, but it offered no definitive schedule for ending the existing payments or for any replacement arrangements.

Negotiators Explore Post-2028 Options

A report by Israeli outlet Ynet on 9 November added further uncertainty. It said negotiators were considering keeping annual direct military financing near current levels after 2028, but limiting a future agreement to five years before phasing that support out. The proposal has not been finalised, and no formal framework has been announced.

The existing memorandum is not itself a guarantee of congressional funding. US lawmakers must approve appropriations each year, giving Congress a central role in any change to the assistance programme and the timing of any phase-out.

Domestic Politics and Defence Industry on Alert

Trump also acknowledged the electoral calculation. He singled out Abdul El-Sayed, then the Democratic candidate for Michigan's Senate seat, as an example of criticism of US support for Israel. El-Sayed defeated Republican Mike Rogers in the 3 November election and is now senator-elect.

The uncertainty leaves Israel's military planners and the American manufacturers supplying its armed forces without a clear timetable for any change in funding. It also leaves voters and policymakers without clarity on how Trump's stated intention to 'cut off' aid will be reconciled with existing security commitments and ongoing negotiations.