US President Donald Trump has announced that Washington will end roughly $4 billion in annual assistance to Israel by the end of 2026, arguing that the country has become sufficiently prosperous to fund its own defence requirements and purchase military equipment without relying on American support.

Speaking during an interview with Fox News, Trump said the long-running financial assistance arrangement would come to an end this year.

“We were giving them $4 billion -- we are --, but it gets cut off at the end of the year,” Trump stated.

Explaining the decision, Trump argued that Israel no longer requires direct American funding, describing the country as economically strong and capable of sustaining its own military needs.

“They don't need it,” Trump said, adding, “Israel is a very thriving country.”

The announcement marks a potentially significant shift in US-Israel relations, although Washington is expected to continue military sales to Israel even after the financial assistance is halted. Trump also indicated that the issue had been discussed with Israeli Prime Minister Benjamin Netanyahu over an extended period.

The move comes despite the current US-Israel security assistance framework, established under a long-term memorandum of understanding that provides approximately USD 3.8 billion annually through 2028. The future implementation of Trump's proposal could face political and legislative scrutiny given the existing agreement.

Reacting sharply to the announcement, Israeli Democratic Party Chairman Yair Golan accused Prime Minister Netanyahu of presiding over another major strategic failure at a time when Israel's military spending remains elevated following an extended period of conflict.

In a post on X, Golan said, “Precisely at a time when Israel's defence expenditures have reached enormous proportions, when Israel needs to replenish its offensive weapons stockpiles, and when its air defence capabilities have eroded after such a prolonged war - Netanyahu chalks up yet another colossal failure on his record.”

Golan warned that the withdrawal of American assistance would place additional pressure on Israel's finances and security establishment.

“The halt in American aid is a severe blow to Israel's security and to the quality of life in the country, because funding security needs at such a critical juncture will fall solely on the Israeli public,” he said.

Escalating his criticism, Golan argued that a responsible government would seek to secure greater American backing rather than allow it to be reduced.

“A responsible prime minister would fight to increase American aid, not dismantle it. Netanyahu is deepening the security and economic crisis and endangering Israel's future,” he added.

The development comes as Israel continues to address heightened security challenges following a prolonged regional conflict and amid ongoing debate over the country's long-term military and economic dependence on the United States.

Netanyahu has previously indicated that he would like Israel to gradually reduce its reliance on American military assistance over the coming decade, reflecting a broader push towards greater strategic self-sufficiency.

The announcement also arrives during a politically sensitive period. Reports indicate that Netanyahu recently urged Trump to consider renewed military action against Iran after the US midterm elections, amid Israeli concerns that Washington remains committed to pursuing diplomatic engagement with Tehran.

At the same time, Israel's domestic political landscape remains in flux. Leaders of the opposition's “Change and Repair” bloc have united behind former military chief Gadi Eisenkot as their preferred candidate for prime minister, agreeing to recommend him to President Isaac Herzog in an effort to facilitate the formation of Israel's 38th government and accelerate a transfer of power.

Trump's decision has therefore added a new layer of uncertainty to both US-Israel relations and Israel's increasingly contested political environment, with supporters viewing the move as recognition of Israel's economic strength and critics warning of serious consequences for the country's security posture and public finances.

ANI