Israel is readying for talks with the Trump administration over a new 10-year security deal, with the aim of extending US military support even as Israeli leaders prepare for a future without billions of dollars of American cash grants, the Financial Times reported on Tuesday.
Gil Pinchas, speaking to the FT before stepping down as chief financial adviser to Israel's military and defense ministry, said Israel would seek to prioritize joint military and defense projects over cash handouts in talks that he expected to take place in the coming weeks.
The US State Department did not immediately respond to a Reuters request for comment outside regular business hours.
"The partnership is more important than just the net financial issue in this context ... there are a lot of things that are equal to money," Pinchas told the FT. "The view of this needs to be wider."
Pinchas said pure financial support - or "free money" - worth $3.3 billion a year, which Israel can use to purchase US weapons, was "one component of the MOU (that) could decrease gradually."
In 2016, the US and Israeli governments signed a memorandum of understanding for 10 years through September 2028 that provides $38 billion in military aid, $33 billion in grants to buy military equipment, and $5 billion for missile defense systems.
Israel to taper off reliance on US aid, Netanyahu says
This, however, appears to contradict a previous statement by Prime Minister Benjamin Netanyahu, who said in an interview with The Economist earlier this month that he aims to taper off Israeli reliance on American aid within a decade, claiming this is "in progress."
Netanyahu revealed that he may not seek to fully renew the $3.8 billion American military assistance package that Israel receives annually. The package is due for renegotiation in 2028.