Halving Aid: New Military Deal Between Washington and Tel Aviv

The administration of U.S. President Donald Trump is working to reach a new military agreement with Israel before the end of this year, and before the new Congress takes office in January next month, as part of an understanding that involves reducing direct U.S. military aid to Tel Aviv by approximately half, according to a report by "Yedioth Ahronoth" newspaper.

According to the report, aid will not stop immediately as Trump announced; rather, funding will continue at roughly current annual levels, totaling $3.3 billion, for five years after the existing agreement ends in 2028, amounting to about $16.5 billion in total, instead of $33 billion over ten years under the current arrangement, with direct aid ending thereafter.

In return, Washington is expected to increase joint funding for the development of air and missile defense systems, which currently stands at $500 million annually, without revealing the size of the anticipated increase, including the "Iron Dome," "David's Sling," and "Arrow" systems.

The report indicated that negotiations are taking place between teams from both sides, with representatives from U.S. Secretary of State Marco Rubio and officials from the Israeli Ministry of Defense and the embassy in Washington participating.

Israel fears that the new Congress may obstruct or delay the approval of funding, as aid requires annual approval of financial appropriations, although the bilateral memorandum of understanding itself does not require Senate ratification. The report also quoted an Israeli official stating that reducing aid could harm American defense industry companies, since most funds are spent within the United States.

Trump had said that aid would cease by the end of this year, in an announcement that surprised Israeli officials.