Israel’s military is preparing to scale back some security missions after receiving less funding than anticipated and amid talk of US aid cuts in the future.
By World Israel News Staff
The Israeli military is preparing to scale back some security missions after receiving far less additional funding than it requested, as defense officials warn that uncertainty over future US military aid could complicate major procurement plans and force Israel to rethink how it builds its military over the next decade.
The Finance and Defense ministries agreed last week to transfer an immediate additional 15 billion shekels, about $5 billion, to the military. The IDF had sought 40 billion shekels, citing the cost of the continuing multi-front war and the need to replenish stocks, sustain deployments and maintain readiness.
The compromise leaves a gap of roughly 25 billion shekels. According to Israel Hayom, the shortfall has led the IDF to begin preparing cuts to some missions, including reductions affecting community security squads in Judea and Samaria, communities near the Lebanon border and some security tasks along the Syrian frontier. The military is also expected to reduce the number of reservists serving in headquarters roles as the intensity of fighting declines.
The budget dispute comes as Israel continues to absorb the military and financial consequences of the wars that followed Hamas’s October 7, 2023, attack, including prolonged fighting in Gaza, major operations in Lebanon and a direct war with Iran earlier this year.
The 2026 state budget already gave the Defense Ministry a record allocation of about 143 billion shekels, or roughly 17% of total state spending.
But defense officials have argued that the approved budget does not cover the full operational bill, while Finance Ministry officials have pushed back, warning against reopening the state budget and accusing the military of mismanagement.
Military sources cited by Israeli media said that without additional funding, the IDF could be forced to delay reservist call-ups, base construction in Gaza and Lebanon, artillery-shell production and the purchase of spare parts for tanks and other equipment.
The latest agreement, mediated by the National Security Council, avoided immediately reopening the 2026 budget, which could have required either tax increases or cuts to civilian ministries.
Calcalist reported that the plan provides about 12 billion shekels immediately and another 3 billion by the end of the year, while leaving open the possibility of up to 25 billion shekels more in October and November, depending on operational needs and performance benchmarks.
But Israel Hayom reported that defense officials are skeptical that the remaining funds will be approved in October, when elections are expected, and are therefore preparing operational reductions now.
Alongside the immediate shortfall, the IDF is also dealing with a broader manpower problem. A scheduled reduction in mandatory military service, from 32 months to 30 months, is due to take effect on January 1 unless the Knesset acts.
The IDF has urged the government to cancel the cut, warning that otherwise it may have to close regular combat units and push more of the burden onto reservists.
One senior officer sharply criticized the government’s handling of the issue, saying: “The spectacle of a government gripped by frenzy and occupied 24/7 with appeasing ultra-Orthodox draft dodgers, while imposing an additional burden on those who are already serving, is hard to watch.”
The second major concern is long-term force buildup. Israel recently approved a plan to buy two additional combat squadrons, including F-35s from Lockheed Martin and F-15IA jets from Boeing, as part of a 350 billion shekel plan to preserve Israel’s military edge over the next decade.
The Defense Ministry has cast those purchases as essential after the Iran war, which reinforced the importance of air superiority and the US-Israel strategic relationship. Defense Ministry Director General Amir Baram said in May that Israel had to act “to secure the IDF’s military edge ten years from now and beyond.”
But the future of US aid is increasingly uncertain. The current 10-year memorandum of understanding, signed in 2016, provides Israel with $3.8 billion a year through 2028, including $3.3 billion in foreign military financing and $500 million for missile defense. Most of that money must be spent on purchases from US defense firms or through the US government.
Israel Hayom reported that Prime Minister Benjamin Netanyahu has instructed the defense establishment to prepare for the possibility that US military aid could be fully canceled toward the end of the next decade. Defense officials said the government also decided to allocate about 150 billion shekels over the next 10 years for procurement aimed at reducing dependence on foreign suppliers, particularly for munitions and spare parts.
Still, senior defense figures warned that a voluntary phaseout of US aid could be dangerous if it leaves Israel without guaranteed access to platforms it cannot produce domestically, including fighter aircraft, refueling planes and helicopters.
“We must remain in the position of a preferred partner of the US,” a senior official said. “We must not reach a situation in which the administration treats us like ‘just another customer’ whose power can be cut off at any moment.”
The debate is taking place as US lawmakers increasingly challenge military assistance to Israel.
Last week, the US House was set to consider an amendment by Rep. Thomas Massie that would block funds in the relevant appropriations bill from being used for Israel and cut $3.3 billion from the foreign military financing account. Several progressive Democrats backed the measure, while senior Democrats said they would oppose it.
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