Trump says Washington will stop annual aid after a deal with Netanyahu; Israel shifts to buying US weapons.
MoneyTurkey Politics Desk | 3 November 2026
Key points
- President Donald Trump said the US will stop $4 billion in annual funding to Israel by the end of 2026 under a deal reached with Prime Minister Benjamin Netanyahu.
- Trump told Fox News that Israel no longer needs the aid and that the move ends a political talking point used by Democrats.
President Donald Trump said the United States will stop $4 billion in annual funding to Israel by the end of 2026. He told Fox News that he and Prime Minister Benjamin Netanyahu reached the agreement months ago. Trump said Israel no longer needs the support and can buy US weapons directly. The announcement comes as US political debate over aid to Israel has grown sharper.
What happened
Trump said the US gives Israel $4 billion a year and that the payments will end. He said the two leaders agreed to stop the transfers by the end of this year. Trump added that Washington would still help Israel if it needed support in the future. He said the decision removes a political signal of unfairness used by critics.
The memorandum of understanding that provides $3.8 billion in annual US military aid to Israel is set to expire in 2028. Trump’s remarks did not specify which exact funding stream would stop. Netanyahu’s office has not issued an immediate comment. Netanyahu has previously said he hoped Israel would move away from US military support within a decade.
Trump said Israel can buy whatever weapons it wants from the United States. He noted that Europe can do the same. He said the US makes the greatest weapons in the world. The State Department did not immediately respond to requests for comment on the announcement.
What is at stake for markets
The change would shift Israel from grant aid to direct purchases of US military hardware. US defense contractors that sell to Israel could see orders move from government-funded to commercial contracts. The timing of the shift, if confirmed, would affect budget planning for both governments over the next two years.
Aid to Israel has been a point of contention in US budget debates. Any formal change would require congressional action to alter or end the current memorandum. Markets will watch whether the administration seeks new legislation or lets the existing agreement run its course until 2028.
Why it matters
Trump said the left uses the $4 billion payment as a signal of unfairness. He said the administration does not want to allow that argument to continue. The move comes as public support for Israel has fallen in the United States, especially among Democrats. A Quinnipiac University poll found 48 percent of voters and 66 percent of Democrats believe the United States is too supportive of Israel.
The House of Representatives defeated an amendment to cut off aid to Israel in July by a vote of 314 to 104. Nearly half of Democrats supported the measure. The political pressure around the issue has increased in both parties. Trump said the decision was made because Israel does not need the funding.
The announcement affects a long-standing element of US-Israel relations. It also touches on how future military sales and budget allocations will be structured. Observers will watch for any formal statements from the Israeli government and any legislative steps in Washington.
What to watch
- Any statement from Netanyahu’s office on the reported deal
- Congressional action on the 2028 aid memorandum
- US defense contractor order flow from Israel
- Further polling on US public views of Israel aid
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For information only. Not investment advice.
Sources
- Reuters: https://www.reuters.com/world/middle-east/trump-says-us-will-stop-paying-israel-after-year-end-2026-11-03/
- AP: https://apnews.com/article/trump-israel-military-aid-hardware-5cad93330300b2d45a9665d5eccb2ab2
- Hurriyet Daily News: https://www.hurriyetdailynews.com/mhp-leader-urges-inclusion-of-arab-parties-in-israels-next-coalition-228973
- SCMP: https://www.scmp.com/news/world/middle-east/article/3373175/israel-arab-lawmakers-key-unseating-netanyahu-amid-divided-opposition
- Daily Sabah: https://www.dailysabah.com/world/americas/us-to-stop-38b-military-aid-to-israel-by-end-of-2026-trump
- Al Jazeera: https://www.aljazeera.com/news/2026/11/3/trump-announces-that-us-will-stop-paying-israel-after-year-end
- Anadolu: https://www.aa.com.tr/en/middle-east/-israel-s-ultra-orthodox-shas-party-to-recommend-netanyahu-to-form-next-government/4110174
- Business Day: https://www.businessday.co.za/world/americas/2026-11-03-trump-says-us-to-end-4bn-annual-funding-to-israel/
