Israel working on new US military aid deal that would phase out assistance over 5 years

The negotiations come a week after US President Donald Trump announced plans to halt aid to Israel. However, the existing military assistance agreement remains in effect through 2028 unless Congress takes action to change it.

Sources tell i24NEWS that the alternative arrangement has been developed behind the scenes for months, with former Israeli minister Ron Dermer playing a key role in discussions with US officials.

Dermer, who began working on the issue while still in office, has reportedly continued his involvement alongside Israeli defense officials and representatives at the Israeli Embassy in Washington.

Israeli officials are seeking to finalize the agreement before the new US Congress is sworn in in January.

US Ambassador to Israel Mike Huckabee confirmed to i24NEWS that an immediate suspension of assistance was not currently underway, emphasizing that such a move would require congressional approval.

"There is no sudden halt to the aid that I am aware of, because such a move would require congressional action," Huckabee said. "We still have two years left under the memorandum of understanding, but that is a decision that will be made far from Jerusalem."

The negotiations also come amid growing skepticism in the United States over continued foreign assistance, including military funding for Israel.

An American source told i24NEWS that public attitudes toward such funding have shifted significantly, particularly among younger Americans.

"The mood in the U.S. has shifted significantly against funding in general," the source said. "Looking ahead to Gen Z, I doubt there will be any support for Israel at all."

The emerging proposal would allow Israel and the United States to gradually wind down military assistance rather than end it abruptly, potentially providing both governments with a framework for managing the transition while preserving their defense relationship.