US President Donald Trump has announced that Washington will stop providing its annual financial assistance to Israel by the end of this year, following an agreement reached with Israeli Prime Minister Benjamin Netanyahu several months ago.

In a telephone interview with Fox News on Tuesday morning, Trump said the two leaders had agreed to end the United States' annual payments to Israel, which he put at approximately $4 billion.

He indicated that while regular financial assistance would come to an end, the United States could still provide support to Israel if the country faced a future need.

However, the precise details of the reported agreement remain unclear, including which funding arrangements would be affected and whether the decision would involve a complete withdrawal of American financial assistance.

The announcement has also raised questions about the future of the long-standing US-Israel military assistance programme.

Under an existing memorandum of understanding, Washington has committed to providing Israel with $3.8 billion annually in military assistance. The agreement, signed in 2016, is due to expire at the end of 2028.

It remains uncertain whether Trump's announcement signals an early termination of this arrangement or refers to a separate funding agreement.

The White House has been approached for clarification, while Netanyahu's office has not yet issued a public response.

Trump Says Israel No Longer Needs US Financial Assistance

During the interview, Trump suggested that Israel had reached a position where it could manage without regular American financial support.

He also criticised Democrats for using US assistance to Israel as a political issue in their criticism of the Republican Party.

Despite the planned end to annual payments, Trump indicated that Washington would remain open to helping Israel if necessary.

He also suggested that Israel could continue purchasing American weapons, although no details have been provided about a possible new procurement arrangement or alternative framework for military cooperation.

The lack of clarity surrounding the proposed changes has left questions about how the two countries would manage their defence relationship once the existing funding arrangements change.

Netanyahu Previously Called for a Gradual End to US Aid

Trump's announcement follows earlier comments by Netanyahu expressing his desire to reduce Israel's dependence on American financial assistance.

In a May interview with CBS, Netanyahu said he wanted to gradually eliminate US financial support, which currently amounts to approximately $3.8 billion annually.

He proposed beginning the process immediately and completing the transition over the following decade.

Netanyahu's comments indicated a preference for Israel to become increasingly self-reliant in financing its defence requirements rather than continuing to depend on annual American assistance.

However, Trump's latest remarks appear to suggest a potentially faster timeline, with the US president pointing to the end of this year as the date for stopping the payments.

Israel Remains the Largest Recipient of US Foreign Assistance

Israel has been the largest recipient of US foreign assistance since the end of the Second World War.

A Congressional report published last year estimated that total American assistance to Israel had reached approximately $174 billion, excluding adjustments for inflation.

The relationship has traditionally enjoyed strong bipartisan support in Washington, with both Republicans and Democrats backing military cooperation and security assistance to Israel.

However, political support for continued funding has increasingly come under pressure, particularly among Democrats following the outbreak of the Gaza war in October 2023.

Growing criticism of Israel's military operations has contributed to a broader debate in Congress over whether American financial and military assistance should continue without changes.

Growing Political Opposition to US Aid for Israel

The debate over American assistance to Israel has become increasingly visible on Capitol Hill.

In July, Republican Representative Thomas Massie pushed for a vote on legislation seeking to cut $3.3 billion in security assistance to Israel.

The proposal attracted support from 103 Democrats, while Massie was the only Republican to back the measure.

Despite the cross-party support for reducing assistance, the proposal was defeated by 314 votes to 104.

Public opinion has also shifted in recent years.

A Quinnipiac University poll conducted in September found that 48% of American voters believed the United States was providing too much support to Israel, compared with 16% in 2017.

The figures highlighted a significant divide between political groups. Among Democratic voters, 67% believed Washington was too supportive of Israel, compared with 17% of Republicans.

Trump's latest announcement comes amid this changing political climate and renewed questions about the future of US financial and military commitments to Israel. 

Although the president has indicated that annual payments will end by December, the precise scope of the decision remains uncertain. Further clarification from the White House and the Israeli government will be important in determining whether the announcement represents a fundamental change in the decades-long US-Israel assistance relationship.