The United States is planning to reduce direct military assistance to Israel by nearly half under a new security agreement that will take effect after 2028. Instead of continuing its traditional 10-year aid arrangement, Washington is considering a five-year funding package before ending direct military assistance. According to Ynetnews, negotiators are working to finalise the memorandum of understanding (MoU) before January.

The latest details emerged about a week after US President Donald Trump said he and Israeli Prime Minister Benjamin Netanyahu had agreed to end American military aid by the end of this year. His announcement reportedly surprised Israeli officials, who were still negotiating the future security arrangement.

A senior Israeli official said Trump's statement was mainly driven by domestic political calculations. He reportedly wanted to support Republican Senate candidate Mike Rogers in Michigan against Democratic challenger Abdul El-Sayed. However, El-Sayed won the election, becoming the first Muslim elected to the US Senate.

Speaking to Fox News on Election Day, Trump said, "We were giving them $4 billion. We are, but it gets cut off at the end of the year." He also said Netanyahu had previously suggested gradually ending the assistance, arguing that Israel had become a wealthy country and no longer needed such support.

However, the proposed agreement does not involve an immediate end to military assistance. Under the existing arrangement, Israel will continue receiving USD 3.3 billion annually in Foreign Military Financing and another USD 500 million for joint defence research through 2028.

Under the revised framework being discussed by representatives of US Secretary of State Marco Rubio and Israel's Defence Ministry, similar annual funding levels would continue for five years after 2028. The total package would amount to approximately USD 16.5 billion, after which direct military assistance would end.

At the same time, funding for joint air and missile defence programmes is expected to increase from the current USD 500 million annually. However, the revised amount has not yet been finalised.

A senior Israeli official also pointed to resistance within the US Congress against reducing military assistance. Much of the funding returns to American defence manufacturers and supports jobs and local economies.

"We are moving here from a model of aid to a model of partnership," the senior Israeli official stated, adding, "It is important to remember that most of the security assistance remains in America and contributes to the American economy. Cutting it would also hurt American industries and require adjustments."

Negotiators hope to complete the agreement before the new Congress convenes in January. However, Israeli officials remain concerned about annual congressional funding approvals and possible political opposition in Washington. They also acknowledge that future governments and political leadership in both countries will influence congressional support for the agreement, Ynetnews reported.