US, Israel drafting plan to end military aid by 2038

Trump administration reportedly in talks with Israel to draft new 10-year Memorandum of Understanding that will gradually end American military aid to the Jewish state.

By World Israel News Staff

Israel and the United States are set to begin negotiations next month on a new long-term defense assistance framework that could gradually end American military aid to Israel by 2038, according to a report published by Calcalist on Sunday morning.

The talks will focus on replacing the current 10-year Memorandum of Understanding, signed in 2016 and running through 2028, under which Washington provides Israel with $38 billion in security assistance.

Under the existing deal, Israel receives about $3.3 billion annually for weapons procurement and roughly $500 million for joint missile defense programs.

The new Memorandum of Understanding is expected to mark a significant shift in the relationship, with US financial assistance gradually decreasing over time while cooperation on joint weapons development expands.

An Israeli defense official said future needs remain uncertain, noting that “there is no way to know now exactly what the battlefield will require in 12 years.”

Officials from both countries are expected to take part in the negotiations, including senior representatives from Israel’s Defense Ministry and the US State Department.

The anticipated changes come amid shifting political sentiment in Washington, where support for military aid to Israel has declined in recent years among both Democrats and Republicans.

At the same time, the US defense industry is experiencing high demand due to global conflicts, reducing reliance on Israeli procurement.

Israeli officials are preparing for the financial impact of a gradual phaseout, warning that maintaining current military capabilities without US aid would require a substantial increase in Israel’s defense budget.

The Defense Ministry has already outlined plans for an “intensive decade” of military buildup, including investments in advanced systems such as lasers, air defenses, and next-generation combat platforms.

According to the report, one goal of the upcoming talks is to establish a framework in which US financial assistance to Israel is reduced to zero by 2038, marking a historic transition in the countries’ security relationship.