End of US annual aid could leave Israel with $10 billion arms funding gap, raising questions over purchase of 25 additional F-35 stealth fighters.
By World Israel News Staff
Israel has approximately $10 billion in outstanding American weapons orders that are not covered by existing US military aid commitments, raising questions about how the purchases will be financed following President Donald Trump’s announcement that Washington will end direct military assistance to Israel.
According to a report published by the Wall Street Journal, a State Department document sent to Congress reveals that Israel would require roughly $10 billion beyond 2028 to pay for military equipment already ordered as of April 1.
The figure includes commitments associated with the planned acquisition of 25 additional F-35 fighter jets.
Under the existing military assistance agreement, the United States is committed to providing Israel with approximately $3.3 billion annually in military financing through 2028, in addition to funding for missile defense programs.
The agreement allows Israel to make purchases against future American aid allocations, enabling the Israeli military to place orders for equipment years before the funds are transferred.
However, Trump’s announcement Tuesday that he intends to terminate direct military assistance by the end of 2026 has raised uncertainty over who will finance the outstanding purchases.
“There’s an issue of who’s going to pay for that,” Democratic Congressman Joaquin Castro of Texas told the Wall Street Journal.
According to the State Department document, the outstanding obligations could be financed through future American military assistance, Israeli government funds, or a combination of both.
Trump announced the proposed termination of aid during an Election Day interview with Fox News, saying he had reached an agreement with Prime Minister Benjamin Netanyahu to discontinue the assistance.
“We won’t be paying any more to Israel,” Trump said, adding that Washington would continue selling weapons to the Jewish state.
The announcement reportedly surprised senior Israeli defense and financial officials, despite previous discussions between Washington and Jerusalem about gradually reducing Israel’s dependence on American assistance.
Netanyahu has previously proposed phasing out direct US military aid over approximately a decade, while maintaining close defense cooperation between the two countries.
The issue has gained additional political significance following the Democrats’ victories in Tuesday’s congressional elections. Vice President JD Vance cited the war with Iran and American relations with Israel among the factors contributing to Republican losses.
Meanwhile, members of Congress are advancing legislation that would restructure American security assistance to Israel, replacing direct military financing with expanded investment in joint weapons development and production.
The proposed arrangement would build on existing cooperation between American and Israeli defense companies, including the development and production of the Iron Dome missile defense system.
Supporters argue that the change would strengthen the defense industries of both countries, while critics warn that it could deepen Israel’s dependence on American military supply chains and Pentagon programs.
Despite Trump’s announcement, former American officials have questioned whether military assistance could realistically be terminated before the end of the year.
“It’s not plausible we stop by the end of this year,” former State Department official Josh Paul told the Wall Street Journal, citing funds already appropriated by Congress.
The existing military assistance agreement was signed in 2016 under President Barack Obama and provides for $38 billion in US assistance over 10 years, ending in 2028.
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