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Israel and the United States are negotiating a new multiyear military aid agreement, Israeli newspaper Yedioth Ahronoth reported Monday.
According to the daily, Israel is seeking to finalize the agreement before the new U.S. Congress is sworn in January, amid concerns that political obstacles could affect the continuation of aid.
The Democratic Party won control of Congress from U.S. President Donald Trump’s Republican Party in the Nov. 3 midterm elections.
Yedioth Ahronoth said U.S. military aid to Israel “will not end immediately,” contrary to previous remarks by Trump.
Trump said on Nov. 3 that Washington would stop providing military aid to Israel after the end of this year under a deal he reached with Israeli Prime Minister Benjamin Netanyahu, arguing that Israel no longer needs it. “We’ve already agreed that by the end of this year we won’t be paying Israel. Now we’ll help Israel if they need it,” he told Fox News.
Israeli officials have not confirmed a formal accord, and a senior security official told public broadcaster KAN that Israel had not expected the announcement.
Direct military aid is expected to be reduced by nearly half through shortening the usual 10-year framework to five years after the current agreement expires in 2028, the paper said.
Direct U.S. military assistance will then end altogether after the five years, it added.
At the same time, Washington is expected to increase funding for the joint development of air and missile defense systems from the current level of $500 million annually to an undisclosed sum, according to the report.
Under a 10-year memorandum of understanding signed in 2016, the U.S. committed $38 billion to Israel for fiscal years 2019-2028, including $3.3 billion a year in Foreign Military Financing and $500 million for missile defense. Congress approved about $26 billion more in 2024.
Netanyahu has previously proposed eliminating direct aid over the coming decade. Israel also has about $10 billion in outstanding orders for U.S. military equipment not covered by existing aid commitments through 2028, The Wall Street Journal reported.
Successive U.S. administrations have provided Israel with extensive military, financial and political support.
Washington has also remained a key military and diplomatic supporter of Israel during its genocide in Gaza since October 2023.
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