Trump’s Israel aid cut reveals push to trade grants for tech cooperation

Trump announces roughly US$4 billion annual funding will end by year-end, replaced by joint weapons technology development

us-israel defence relationship military aid joint weapons technology

Quick Look

US President Donald Trump announced that roughly US$4 billion a year in direct military funding to Israel will be cut off by year-end and replaced with joint weapons technology programmes, restructuring the close US-Israel defence relationship over the coming two years.

AI-generated summary

Why It Matters

The United States and Israel maintain a close defence relationship, with Israel receiving roughly US$4 billion a year in direct military funding. The article reports this will be phased out by year-end in favour of joint weapons technology programmes.

Font size

A shift towards joint technology development looks set to replace traditional grants with deeper, less scrutinised Pentagon funding

The close defence relationship between the United States and Israel is set to be restructured over the coming two years, with billions of dollars in direct annual military aid being phased out in favour of joint weapons technology programmes.

US President Donald Trump shocked Israelis and Americans alike on Tuesday by suddenly announcing that the roughly US$4 billion a year in direct military funding received by Israel would be cut off by the end of the year.

Speaking to Fox News on the morning of the US midterm elections, Trump claimed “They [Israel] don’t need it”, adding that he had “reached an agreement” with Israeli Prime Minister Benjamin Netanyahu.

What to Watch

AI outlook — possibilities, not facts

Direct US military aid to Israel will be cut off by the end of 2026
Very likely · Within months
The US-Israel defence relationship will be restructured over the coming two years toward joint weapons technology programmes
Likely · Within months

Open Questions

What specific joint weapons technology programmes will replace the direct aid?
How will the phase-out timeline be structured over the coming two years?
What was the nature of the reported agreement between Trump and Netanyahu?

Ukrainian President Zelensky called on all countries to help rebuild damaged energy infrastructure at the Ibero-American Summit in Madrid, Spain, and requested the emergency supply of transformers, cables, generators and other electrical equipment. He expressed his intention to purchase transformers from Brazil, Mexico, Argentina, and Colombia, cables from Chile, and electrical equipment and generators from Spain, and invited all countries to cooperate in defense technology. Spanish Prime Minister Sanchez expressed support for Ukraine and believed that there are aggressors and victims in the Russia-Ukraine conflict.

自由时报

2 min read

Developing·1 hour ago

Growing Vietnam ties test Japan’s commitment to rules-based regional order

Human Rights Watch's Tokyo office has urged Japanese Prime Minister Sanae Takaichi to confront Vietnamese President To Lam over Vietnam's failure to deliver promised labour reforms during Lam's four-day visit to Tokyo, as analysts say Tokyo is unlikely to jeopardise its growing partnership with Vietnam amid shared concerns about China's assertive maritime activities.

SCMP Economy

1 min read

Developing·1 hour ago

Resume large-scale strikes against Iran? Trump says decision will be made soon, officials reveal possible timing of attack

U.S. President Trump discussed resuming military operations against Iran with his national security team and said he would soon decide whether to resume large-scale strikes or end the conflict through diplomacy. Senior officials pointed out that there will be almost no moonlight on the new moon night in the Middle East on November 9, which is conducive to military operations. U.S. Central Command is making final preparations for possible operations but has not yet received the latest instructions from Washington.

自由时报

2 min read

World·1 hour ago

The 14th China-EU Forum was held in Brussels

The 14th China-EU Forum was held in Brussels on the 5th, with the theme "China and Europe in the Next 50 Years: Promoting Global Transformation in the Artificial Intelligence Era." Nearly a thousand people including representatives from the Chinese and European political, business and academic media circles and envoys from relevant countries to Europe attended the meeting. The two sides had in-depth discussions on strengthening exchanges and cooperation, promoting artificial intelligence governance and practical cooperation in the digital green field.

中国新闻网

2 min read

More on this topicus-israel defence relationship