Israel Races To Secure $16.5 Billion Before Democratic Congress Takes Office Despite Trump's Vow to Cut Aid

Israel is pushing to lock in a new five-year US military aid package worth about £12.4 billion ($16.5 billion) before the incoming Congress convenes in Washington in January.

The expedited negotiations, reported by financial daily CTech on Tuesday, 10 November 2026, follow remarks by President Donald Trump declaring that American security assistance would be abruptly terminated by the end of the year.

The scramble arrives as Israeli opposition figures brand Trump's public rhetoric an unprecedented strategic failure, amid fears that the incoming Democratic majorities elected in last week's midterm elections will impose stringent conditions upon future arms transfers.

With the lame-duck Republican majority retaining authority until noon on 3 January 2027, both administrations are seeking to submit the bilateral memorandum before the transfer of power permanently closes their legislative window.

A Shorter, Smaller Deal

CTech reported that Israel and the US are negotiating a security agreement to replace the current 10-year memorandum of understanding, which runs through 2028.

Under the proposal, Israel would receive about £12.4 billion ($16.5 billion) in direct military financing over five years, compared with £24.8 billion ($33 billion) allocated to the same component over the existing 10-year memorandum. The current deal is worth £2.9 billion ($3.8 billion) a year in total, including missile defence.

Annual financing would stay close to the current £2.5 billion ($3.3 billion), but the arrangement would end in 2033. The proposal does not call for an immediate cutoff, as the existing framework runs through 2028.

A separate £376 million ($500 million) annual allocation for joint missile defence, covering Iron Dome, David's Sling and Arrow, could rise, with the amount to be negotiated separately.

Both sides hope to finalise the memorandum by the end of 2026 and submit it to lawmakers before the new Congress convenes. Israeli officials believe the current Congress is likely to approve the framework but are worried about its successor, CTech reported.

Even a signed memorandum would not guarantee funding, as Congress must appropriate funds annually.

'It Gets Cut Off'

Trump made his surprise announcement on Election Day in a call-in interview with Fox & Friends. 'We were giving them $4 billion. We are. But it gets cut off at the end of the year,' he said.

'If they did need it, I would say keep it going,' Trump added, before arguing that 'we give them more than anybody else and they no longer need it'. He called the aid 'a bad talking point' for Republicans facing criticism over it and said Israeli Prime Minister Benjamin Netanyahu had raised the issue himself.

A senior Israeli official told CTech that Trump's statement was driven mainly by domestic political considerations. The official suggested it was intended to help a Republican candidate in Michigan, who ultimately lost.

Backlash at Home

Trump's remarks rattled Israel's opposition. Opposition leader Yair Lapid called it 'one of the most severe political and security failures in the state's history', while Democrats party chairman Yair Golan said halting the aid 'is heavy damage to Israel's security', JTA reported.

Former military chief Gadi Eisenkot criticised the government for learning of 'a shift in the strategic relationship through the media'.

The reversal has not gone unnoticed online. 'Just days after President Trump announced U.S. military aid to Israel would end by 2026, a new deal is being negotiated to extend assistance through 2033,' the X account The General posted on Tuesday 10 November.

Trump also told 60 Minutes, in an interview broadcast on Sunday 8 November, that a 'great dislike, incredibly, for Israel' contributed to the Republicans' midterm losses.

As the calendar advances towards January, both governments are pushing to seal the diplomatic pact before divided government takes hold in Washington.