ExclusiveTrump Cuts Off $4 Billion in Aid to Israel

For years, Washington's support for Israel came with a familiar annual commitment, billions of dollars in military assistance. Then, on the morning Americans began voting in the midterm elections, President Trump announced a dramatic change. By the end of this year, he said, we won't be paying Israel. He says Benjamin Netanyahu agreed. But the existing aid framework runs until 2028. So is this the end of American military funding or the beginning of a difficult renegotiation? Welcome to News Planet. I'm your host, Kathleen Lee. Speaking by phone to Fox & Friends on Tuesday, Trump said he and Netanyahu had agreed months ago to stop approximately $4 billion in annual assistance. They're fine with it, he said, arguing that Israel had become successful enough not to need the funding. But he also added, Now we'll help Israel if they need it. The timetable Trump gave is the end of 2026, and Netanyahu's office declined to comment when contacted by NBC News. To understand the change, go back to 2016. The Obama administration and Israel signed a 10-year memorandum covering $38 billion in military assistance for fiscal years 2019 through 2028. The annual commitment is $3.8 billion. billion dollars. That includes $3.3 billion in military financing grants and $500 million for joint missile defense. This is not simply an unrestricted check. The arrangement helps finance military purchases and programs, with funding increasingly directed toward American defense suppliers. So changing it affects more than a transfer between two governments. It also affects procurement plans and defense industry commitments. Trump says Israel would still be able to purchase American military equipment. That distinction is central. A grant helps pay the bill. A sale allows a customer to buy equipment. Ending the first does not automatically end the second, or terminate the wider security relationship. The proposal could therefore shift more of the financial responsibility to Israel while preserving access to American weapons. Did both leaders agree to an immediate funding cutoff, a phased transition, or a broader restructuring? Trump says an agreement exists. The reporting review does not establish its written terms or precisely which funding streams would end. There is another participant, Congress. Lawmakers authorize assistance and pass the annual appropriations that provide funding. Reuters reports that it remains unclear how the administration intends to stop the money while the current framework is still in place. A political understanding between leaders does not, by itself, explain how already appropriated funds, existing commitments, or future budgets will be handled. The next milestone is implementation. Which programs, which appropriations? Trump also explained the announcement in political terms. He said annual assistance had become a talking point used by left-wing critics to portray American support as unfair. By cutting it off, they have less reasons to be critical. But the partnership will continue. What remains unclear is exactly how those two promises fit together. The announcement changes the debate. The written terms and the budget decisions that follow will determine whether it changes the relationship. That's all we have today for News Planet. Thanks for watching and we'll see you next time.