US President Donald Trump has announced that Washington will end its annual financial assistance to Israel after the end of 2026, following what he described as an agreement with Israeli Prime Minister Benjamin Netanyahu.

Trump made the announcement in an interview with Fox News' Fox & Friends on Tuesday, saying the two leaders had reached an agreement months earlier to stop the payments.

“We've already agreed that by the end of this year we won't be paying Israel. Now we'll help Israel if they need it,” Trump said.

The US president said Israel receives approximately $4 billion annually and argued that the country no longer needs the financial assistance.

Future of US-Israel military cooperation

Trump's announcement raises questions about the future of US military assistance to Israel, one of Washington's closest allies in the Middle East.

Under a 10-year memorandum of understanding signed in 2016, the US committed $38 billion in military assistance to Israel for the 2019–2028 period, equivalent to $3.8 billion annually.

It remains unclear whether Trump's announcement refers to an early termination of the existing arrangement or a decision not to renew military assistance after the agreement expires in 2028.

Trump indicated that Washington would continue supporting Israel if necessary and suggested that the country could purchase American military equipment directly.

Netanyahu's office had not immediately commented on Trump's announcement, according to Reuters.

The announcement comes amid growing political debate in the United States over military assistance to Israel, particularly following the war in Gaza.