Trump: US to Shift $4B in Israel Aid to Arms Sales Starting in 2027
The administration plans to end annual cash grants and replace them with hardware purchases, a change Trump says was initiated by Prime Minister Netanyahu.
By Jonathan Ramirez ·
The annual transfer of American financial support to Israel has long been a fixed element of the bilateral relationship, but that arrangement will change next year. President Donald Trump announced on Tuesday that the United States will cease providing $4 billion in aid to Israel in 2027. In its place, Washington will sell military hardware to the country.
Trump made the declaration during a phone interview with Fox News Channel on Election Day for the midterms. He stated that Israeli Prime Minister Benjamin Netanyahu proposed the switch. According to the president, the two leaders have discussed the potential change for roughly two years. Trump characterized the new model as a form of barter, where Israel purchases equipment rather than receiving cash or free goods.
The president cited the high cost of the grants as a primary reason for the shift. He argued that the $4 billion figure represents a substantial expense for the United States. Trump also noted that the aid package has become a focal point for Democratic candidates, specifically mentioning Abdul El-Sayed, who is running for Senate in Michigan.
"You can consider it barter. You can consider military aid or cash," Trump said. "Look, we give them $4 billion of things and money, and they don’t need it. And I was approached by Bibi Netanyahu, and we’ve been talking about it for a couple of years because it’s a lot of money."
Netanyahu’s office did not provide an immediate comment on the announcement. The shift occurs against a backdrop of massive American financial commitments to the region. An academic study released last year found that the United States provided at least $21.7 billion in military assistance to Israel from the start of the Gaza war in 2023 through the end of 2025. That study covered the administrations of both Joe Biden and Donald Trump.
Separate research from the Costs of War project at Brown University’s Watson School of International and Public Affairs estimated additional spending. The project calculated that the U.S. spent approximately $10 billion more on security aid and operations across the broader Middle East during the same two-year period. These figures rely on open source materials to track the financial scope of American involvement.
The change in policy marks a departure from the standard grant structure that has defined U.S.-Israel military relations for decades. The transition to a sales model implies a different accounting method for Congress, which typically appropriates funds for grants differently than for arms sales. The specific terms of the new agreement, including which hardware will be prioritized, were not detailed in Tuesday’s interview.
