Israel Moves to Phase Out U.S. Aid: New Deal Would Shift Focus to Joint Weapons Development
Netanyahu is reportedly advancing a new agreement that would phase out Israel’s annual U.S. aid grant and replace it with joint Israeli-American weapons development
Ending Cash Aid
Israel is moving to end its dependence on U.S. financial aid, with Prime Minister Benjamin Netanyahu advancing a new agreement with Washington that would stop Israel from receiving the annual $3.3 billion aid grant, according to journalist Ariel Kahana.
Under the proposed framework, the financial aid would be replaced by joint development and production of advanced weapons systems by Israeli and American defense companies.
Joint Defense Production
The new model would follow the successful format of the Arrow missile project, which has been developed through Israeli-American defense cooperation.
The goal is to fully phase out financial aid by 2038. Since the current U.S. aid agreement expires in 2028, Netanyahu is seeking to sign the new agreement before the U.S. elections.
Such a move is also expected to be welcomed by parts of the American public, where patience for direct financial grants to foreign countries has been declining.
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