by Emmitt Barry, Worthy News Washington D.C. Bureau Chief
(Worthy News) – Israel and the United States are quietly negotiating a new military assistance agreement that would phase out billions of dollars in American aid by 2033, replacing decades of financial support with a defense partnership focused on military technology and joint development.
According to i24NEWS and Ynet, the proposed agreement would maintain approximately $3.3 billion in annual direct military assistance for five years after the current agreement expires in 2028, providing Israel with $16.5 billion before ending the program.
The negotiations follow President Donald Trump’s announcement last week that Washington would discontinue its roughly $4 billion annual military assistance package by the end of 2026, a declaration that reportedly surprised Israeli defense officials.
However, U.S. Ambassador to Israel Mike Huckabee clarified that no immediate suspension was underway and that ending assistance before the existing agreement expires would require congressional action.
Former Israeli minister Ron Dermer has reportedly played a central role in the negotiations, working alongside Israeli defense officials and representatives in Washington.
Under the emerging arrangement, American funding for joint missile-defense programs, including Iron Dome, David’s Sling, and Arrow, could actually increase beyond the current $500 million annually, strengthening cooperation against growing Iranian missile and drone threats.
Israeli officials are seeking to finalize the agreement before the new U.S. Congress takes office in January, amid concerns that shifting political attitudes toward Israel could complicate future funding.
The proposed transition reflects a broader effort by Israel to reduce its dependence on American financial assistance while preserving its strategic military alliance with Washington. No final agreement has been announced, and future funding would remain subject to congressional appropriations.
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