Israeli Prime Minister Benjamin Netanyahu said he aims to reduce Israel’s reliance on American military aid to zero within the next 10 years, describing the process as already “in the works” and tying it to the country’s projected economic growth to a $1 trillion economy.
In an interview with The Economist published on Friday, Netanyahu stated that Israel “very deeply appreciate[s] the military aid that America has given us over the years,” but added, “we too have come of age, we’ve developed incredible capacities and our economy will soon within a decade reach $1 trillion. So I want to taper off the military aid within the next ten years.” He emphasized the ongoing effort, saying: “It’s in the works.” The full interview was conducted in Jerusalem by editor-in-chief Zanny Minton Beddoes and deputy editor Edward Carr.
Israel remains the largest cumulative recipient of U.S. foreign aid since 1948, having received more than $300 billion (adjusted for inflation) in economic and military assistance, according to the Council on Foreign Relations. Under the current 10-year Memorandum of Understanding (MOU) signed in 2016 and running through 2028, the United States provides $3.8 billion annually in military aid — including $3.3 billion in Foreign Military Financing (FMF) for arms purchases and $500 million for cooperative missile defense programs, such as Iron Dome.
This assistance supports key acquisitions like F-35 fighter jets and advanced munitions, accounting for roughly 16% of Israel’s defense budget and helping preserve its qualitative military edge in the region. Since the October 7, 2023, Hamas attack that killed about 1,200 people and ignited the ongoing Gaza conflict — along with escalations involving Hezbollah and Iran — the U.S. has supplied additional supplemental military aid estimated at $17.9 billion to $21.7 billion, according to reports from the Costs of War project at Brown University and related analyses.
Netanyahu’s latest comments build on earlier statements in 2025, including his May remarks to Israel’s Knesset Foreign Affairs and Defense Committee calling for Israel to “wean” itself off U.S. military aid to strengthen its domestic defense industry, and similar assertions in November emphasizing independence for exports and economic benefits. He discussed the plan with U.S. President Donald Trump during a recent visit.
Israel’s economy, currently valued at around $564-610 billion in nominal GDP (with IMF estimates for recent years and projections toward higher levels), is seen by some analysts as on a path toward significant expansion, though reaching $1 trillion within a decade would require sustained high growth amid ongoing regional challenges. Proponents of phasing out aid argue it would boost local production and reduce dependence on U.S. political cycles; critics highlight potential short-term capability gaps or strains on the alliance.
Netanyahu, Israel’s longest-serving prime minister, continues to navigate domestic issues including corruption trials and election pressures amid the conflicts, which have led to over 65,000 Palestinian deaths in Gaza per United Nations and local health ministry figures.
U.S. officials have not issued an immediate public response. The current MOU expires in 2028, setting the stage for future discussions on any successor arrangement.
