'I Don't Want It:' Netanyahu Vows To Phase Out US Aid, Claiming The Nation Can Easily Finance Its Own Military Actions

Benjamin Netanyahu says he wants to end the billions of dollars in military aid Israel takes from Washington every year, brushing the money aside as 'welfare' his country no longer needs.

The Israeli prime minister made the remarks in an interview with Channel 14 broadcast on Tuesday evening. He laid out a 10-year plan to wean Israel off American funding, arguing that its economy can now shoulder the cost alone.

The comments arrive amid open strain between Tel Aviv and Washington over Iran policy.

A Blunt Rejection Of 'Welfare' From Washington

'I want to stop US aid. It is like welfare. I do not want it,' Netanyahu told the Channel 14 programme. Asked directly whether Israel should stop receiving the aid, he answered 'Yes.' He then proposed a decade-long phase-down that would steadily cut Israel's reliance on its closest ally.

'US funding represents a small part of gross domestic product and Israel now has enough financial capacity to cover the amount entirely from its own resources,' he said. The prime minister claimed the economy is nearing £740 billion ($1 trillion) and could finance itself from next year.

Independent estimates place Israeli GDP well below that mark, in the region of £407 billion ($550 billion), although it has more than doubled since the current aid deal was signed.

The $38 Billion Pact That Binds The Two Allies

American aid to Israel runs through a 10-year Memorandum of Understanding signed at the State Department on 14 Sept 2016 under President Barack Obama. The Obama administration called it the largest single pledge of military assistance in US history at the time. The deal covers the 2019 to 2028 fiscal years.

The Congressional Research Service confirms the package is worth £28 billion ($38 billion), split between $33 billion in Foreign Military Financing grants and $5 billion for missile defence. That works out at roughly £2.8 billion ($3.8 billion) a year, and the agreement remains in force until 30 Sept 2028. Officials on both sides are expected to open talks on a successor deal within months.

Israel is the largest cumulative recipient of US assistance since the Second World War, having taken about £129 billion ($174 billion) to date, according to the same congressional briefing.

Netanyahu has floated cutting the cord before, with the research service noting that under both the Biden and Trump administrations he has spoken of the need to 'wean ourselves off' American security aid. His latest comments push that long-running idea into firmer territory.

Iran Friction And The Gamble On Self-Reliance

The prime minister first aired the plan in detail on CBS's 60 Minutes, which aired on Sunday 10 May 2026. 'I want to draw down to zero the American financial support, the financial component of the military cooperation that we have,' he said, according to the published transcript. He told the programme that Israel receives £2.8 billion ($3.8 billion) a year and that it was time to wean itself off the remaining support, adding that he did not want to wait for the next Congress.

The push comes against a backdrop of friction over Iran. Israeli officials have said the Trump administration sidelined Tel Aviv from its talks with Tehran and did not fully weigh Israel's interests, a grievance detailed in the Anadolu report. Netanyahu, who faces an International Criminal Court arrest warrant over alleged war crimes in Gaza, has cast greater self-reliance as a matter of national maturity rather than a rift.

Israel already carries a heavy defence load. Its 2026 budget allocated roughly £36 billion ($49 billion) to the military, close to 7% of GDP and a larger share than any NATO member, according to analysis by the Foundation for Defense of Democracies. Analysts question whether the economy can absorb the loss of American funding while still buying advanced US platforms such as F-35 jets and refuelling aircraft.

The question of whether Israel can truly cut nearly £2.8 billion ($3.8 billion) a year without blunting its military edge will test both the economy Netanyahu is betting on and an alliance already showing cracks.