US and Israel Negotiate $16.5B Military Aid Deal Through 2033 Despite Trump's Promise to End Payments

The US and Israel are reportedly negotiating a $16.5 billion military aid agreement that could run through 2033. The talks come despite President Donald Trump's announcement that American assistance to Israel would end in December 2026.

According to Israeli newspaper Yedioth Ahronoth, the proposal would extend direct military financing for five years while expanding cooperation on missile defence.

Trump's Surprise Announcement Sparks Confusion

During a Fox News interview on 3 November, Trump said US payments to Israel would end by the close of 2026, although the existing military assistance framework runs through 2028. 'We were giving them $4 billion, but it gets cut off at the end of the year,' Trump said.

The president said Israeli Prime Minister Benjamin Netanyahu had suggested ending the payments. 'We give them $4 billion of things and money, and they don't need it,' he said. 'I was approached by Bibi Netanyahu, and we've been talking about it for a couple of years because it's a lot of money,' he added.

Trump also suggested that criticism of US aid to Israel, including from Michigan Democrat Abdul El-Sayed, influenced his decision to end the payments and shift towards arms sales. 'Why should we suffer the slings from lunatics like El-Sayed when they don't need it?' Trump said. 'It's a bad talking point.' El-Sayed subsequently defeated Republican Mike Rogers in Michigan's Senate race.

US Military Funding for Israel Could Continue Until 2033

Despite Trump's announcement, Israeli officials reportedly expect military assistance to continue beyond 2026. Under the current agreement, Israel receives $3.3 billion annually in US military financing, totalling $33 billion over 10 years. The existing agreement runs through 2028.

As per the Yedioth Ahronoth, the proposed deal would maintain that annual funding for another five years, providing approximately $16.5 billion before direct military aid ends. The newspaper said that the funding primarily supports purchases of US-made weapons, fighter jets, helicopters, ammunition, and other military equipment.

Missile Defence Funding Could Increase

The existing agreement also provides $500 million annually for joint missile defence programmes, including research, development, and production of systems such as Iron Dome, David's Sling, and Arrow.

The outlet said that the funding for these programmes could increase under the proposed deal as drone and missile threats drive demand for expanded research and development. Officials cited by the newspaper said closer cooperation would benefit both countries.

Negotiations reportedly involve representatives working on behalf of US Secretary of State Marco Rubio, alongside officials from Israel's Defence Ministry and its embassy in Washington.

American Defence Jobs Complicate Aid Cuts

An unnamed senior Israeli official also told Yedioth Ahronoth that some US lawmakers oppose reducing military aid to Israel because of its economic benefits for American defence companies and jobs. The official said much of the funding supports businesses in the lawmakers' home states.

'We are moving here from a model of aid to a model of partnership,' the official said. 'It is important to remember that most of the security assistance remains in America and contributes to the American economy. Cutting it would also hurt American industries and require adjustments,' he added. The proposed transition comes amid growing political debate in Washington over military assistance to Israel, potentially reshaping decades of defence cooperation.