Netanyahu Denies Pursuit of Long-Term US Security Aid Package
Israeli Prime Minister Benjamin Netanyahu refuted claims on Thursday that Israel was seeking a 20-year security aid deal with the U.S. He stated that his “direction is exactly the opposite” and insisted that “the time has come to ensure Israel’s independence,” hinting at an upcoming announcement.
In a podcast with Australian journalist Erin Moran, Netanyahu addressed the rumors, urging her to “follow what I say, not what is being advocated in some leaks that are not true.” He described his current policy as a shift aimed at achieving “greater independence.” Reflecting on his first term as prime minister, he recalled proposing in 1996 to phase out economic aid to help foster a “high-tech, free-market capitalist economy.”
He expressed a desire for Israel’s arms industry to become “as independent as possible.” When asked about the possibility of eliminating military aid entirely, he suggested that “the time has come to ensure Israel’s independence.” He emphasized that U.S. aid constitutes “a tiny, tiny fraction” of overall U.S. expenditures in the region, noting that around 80 percent of this aid is spent on American-made systems.
These remarks come as Israeli and U.S. officials engage in preliminary discussions regarding the next security framework before the current memorandum of understanding expires in 2028. While negotiations are ongoing, reports indicate that officials are exploring a 20-year plan, which includes “America first” components such as funding for joint defense technology research, artificial intelligence, and the “Golden Dome” project, aimed at appealing to the Trump administration.
Israeli sources disclosed that the government is evaluating alternatives to the existing aid structure—currently a $3.8 billion annual agreement expiring in 2028. Options being considered emphasize bilateral technical cooperation and co-production instead of traditional subsidies.
In another development, related parties have indicated that Israel is contemplating a gradual reduction of U.S. military aid, aligning with Netanyahu’s push for a more self-sufficient defense industry. Mark Zell, chair of the Israel Overseas Republican Party, endorsed this direction in light of recent reports, urging Israel to transition toward a purely commercial relationship with the U.S.
“True sovereignty and true partnership require Israel to be self-reliant,” he stated.
The discussions on this topic have been gaining momentum over the past months. In March, the likelihood of replacing subsidies with a partnership model was raised, emphasizing joint research and development. Concerns have been voiced that current aid “creates a false narrative of dependence” and leaves Israel vulnerable to political pressures. A Knesset subcommittee in January deliberated on how changes in U.S. politics and delays in arms deliveries could influence Israel’s strategic position.
In May, Netanyahu informed lawmakers of the need to begin “withdrawing” from U.S. military aid, marking a shift from the previous decade’s economic aid. Israeli officials have suggested that Netanyahu may outline definitive steps towards independence soon.
