The US administration and the Israeli government are negotiating a new memorandum of understanding on US foreign aid to Israel that is likely to differ from three previous memoranda.
The current security memorandum of understanding between the United States and Israel is set to expire in 2028.
On June 2, Yedioth Ahronoth quoted the US ambassador to Israel, Mike Huckabee, as publicly acknowledging for the first time that the upcoming security memorandum of understanding between Washington and Tel Aviv would end direct financial aid to Israel.
Huckabee said the planned agreement would prioritize trade and economic relations over traditional security grants, marking the first official confirmation from a senior U.S. administration official of this anticipated shift.
military aid
A paper issued by the U.S. Congressional Research Service on May 28, 2025, states that Israel has “come of age” and no longer needs assistance as it once did, and Israeli Prime Minister Benjamin Netanyahu has publicly called for a “gradual end to U.S. military aid.”
She added: “Instead of continuing aid, Netanyahu reportedly sought more joint US-Israeli investments in cybersecurity and defense projects.”
The paper explained in this regard that “the US defense budget is currently allocated to support a variety of joint US-Israeli defense programs, including missile defense, counter-tunneling, counter-drone systems, and emerging technologies.”
She said: “Of these joint programs, only U.S. support for Israeli missile defense ($500 million annually) falls within the scope of the current Memorandum of Understanding. In fiscal year 2026, Congress allocated $202 million for joint defense programs with Israel outside the scope of the Memorandum of Understanding.”
The paper notes that “most of the US military aid to Israel funds the purchase of weapons systems and services from US defense companies.”
She added that “if this aid were to gradually cease, Israel might face fewer financial constraints on purchasing defense equipment from other global suppliers, or manufacturing more weapons locally.”
She continued: “However, given that Israel possesses a fleet of almost entirely American-made fighter jets and a missile defense infrastructure dependent on American assistance, it may remain dependent for a long time on American supply chains and, in times of military operations, on direct American military support for defense.”
The paper reveals that US aid, starting in 2021, has become almost entirely military in nature.
$174 billion in aid since 1948
According to the paper, “US aid to Israel since 1948 has exceeded $174 billion, including $146 billion provided up to 2020, of which $104.5 billion was military aid, $34.4 billion was economic aid, and $7.4 billion was missile defense.”
Since 2021, economic aid has completely disappeared and has been limited to military and missile defense aid amounting to 3.8 billion in 2021, 4.8 billion in 2022, 3.8 billion in 2023, 12.5 billion in 2024 and 3.8 billion in 2025.
According to another paper, also issued by the Congressional Research Service but dated June 4, 2026, “The Trump administration and the Israeli government are reportedly negotiating a new memorandum of understanding on U.S. foreign assistance to Israel, which, if completed, would be the fourth such bilateral memorandum of understanding between the two countries.”
She added: “The first Memorandum of Understanding, which extended for ten years (from fiscal year 1999 to fiscal year 2008), and which was signed during the administration of Bill Clinton, represented a political commitment to provide at least $26.7 billion in economic and military aid to Israel (of which $21.3 billion was military aid). This memorandum set a model for the gradual reduction of economic aid to Israel.”
The paper continued: “In 2007, the George W. Bush administration and the Israeli government agreed on a second memorandum of understanding, which included a $30 billion military aid package for a ten-year period, from fiscal year 2009 to fiscal year 2018.”
She added: “In 2016, during Barack Obama’s administration, the US and Israeli governments signed a third Memorandum of Understanding covering the period from fiscal year 2019 to fiscal year 2028. Under its terms, the United States pledged to provide $38 billion in military aid to Israel, including $33 billion in foreign military financing grants and $5 billion in defense allocations for missile defense programs. This third Memorandum of Understanding eliminates a benefit known as ‘foreign procurement,’ which allows Israel to use a portion of US military aid to purchase domestic weapons.”
Aid is approaching $300 billion
“According to the Congressional Research Service, the United States has provided Israel with $174 billion througha combination of bilateral aid and missile defense funding,” the Legal Clarity International Team Institute said in a paper released on June 1, 2026.
He added: “When converted to the constant 2024 dollar value to reflect purchasing power parity, the total commitments from 1946 through 2024 amount to an estimated $298 billion, and no other country comes close to this level of sustained U.S. financial support.”
A key ally of the United States
The US State Department says in a paper issued on April 25, 2025, a copy of which was obtained by Anadolu Agency: “Steadfast support for Israel’s security has always been a cornerstone of US foreign policy for all US administrations since the presidency of Harry S. Truman.”
She noted that Israel “is the world’s leading recipient of U.S. security assistance under Section 22 of the Foreign Military Financing program.”
The ministry said: “This partnership was formalized through a ten-year memorandum of understanding (2019-2028). Under this memorandum, the United States provides $3.3 billion annually under the Foreign Military Financing program, and $500 million for missile defense cooperation programs.”
She added: “Since fiscal year 2009, the United States has provided Israel with $3.4 billion in missile defense funding, including $1.3 billion to support the Iron Dome system starting in fiscal year 2011.”
The ministry continued: “Through the Foreign Military Financing program, the United States provides Israel with access to some of the most advanced military equipment in the world, including the F-35 aircraft.”
It stated that “as of April 2025, the United States has 751 active deals under the Foreign Military Sales program with Israel, worth $39.2 billion.”
The ministry said: “During the period from fiscal year 2018 to fiscal year 2022, the United States authorized the permanent export of more than $12.2 billion worth of defense equipment to Israel through the Direct Commercial Sales program. The most prominent categories of these sales included gas turbine engines and related equipment, launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs, mines, and aircraft.”It stated that “as of April 2025, the United States has 751 active deals under the Foreign Military Sales program with Israel, worth $39.2 billion.”
The ministry said: “During the period from fiscal year 2018 to fiscal year 2022, the United States authorized the permanent export of more than $12.2 billion worth of defense equipment to Israel through the Direct Commercial Sales program. The most prominent categories of these sales included gas turbine engines and related equipment, launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs, mines, and aircraft.”
She added: “Since 1992, the United States has provided Israel with $6.6 billion worth of equipment under the Defense Surplus Equipment Program, including weapons, spare parts, and simulators. The U.S. European Command in Israel also maintains a U.S. War Reserve stockpile, which can be used to bolster Israeli defenses in the event of a major military emergency.”
The ministry stated that “in addition to security assistance and arms sales, the United States engages in numerous exchanges with Israel, including military exercises such as Juniper Oak and Juniper Falcon, as well as joint research and weapons development.”
She said: “The United States and Israel have signed several bilateral defense cooperation agreements, including: the Mutual Defense Assistance Agreement (1952); the General Security of Information Agreement (1982); the Mutual Logistics Support Agreement (1991); and the Status of Forces Agreement (1994).”
The ministry added: “Israel has been designated a major non-NATO ally of the United States under U.S. law.”
This status gives foreign partners certain advantages in the areas of defense trade and security cooperation, and is a powerful symbol of their close relationship with the United States.”
The ministry noted that “in accordance with legal requirements, it is the policy of the United States to assist Israel in maintaining its qualitative military edge.”
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