Citing a senior Israeli official, Ynet said direct US support would be limited to five years, after which the programme would be wound down.
Under the current 2018-2028 agreement, Israel receives USD 3.3 billion a year. The new deal would keep funding at a similar level for five years, or about USD 16.5 billion, against USD 33 billion over the 10-year term of the existing arrangement.
Washington would also raise spending on joint development of air and missile defence systems from the current USD 500 million a year, Ynet said. The new figure has not been set.
Trump unexpectedly announced the end of aid on the day of the US congressional elections. Ynet said Israeli Prime Minister Benjamin Netanyahu had proposed ending it, arguing that Israel no longer needed the help.
A senior Israeli official told Ynet that Trump’s remarks were meant to help Republican Mike Rogers in his Michigan Senate race against Democrat Abdul El-Sayed, a sharp critic of Israel. El-Sayed won and became the first Muslim elected to the US Senate.
Israel wants to finalise the new agreement before a Democrat-dominated Congress takes office in January, Ynet said. The memorandum of understanding needs no ratification, but Congress must approve the funding every year.
Another senior Israeli official familiar with the talks said some US lawmakers opposed cutting aid because much of it is spent in their states, supporting American defence manufacturers. When Netanyahu publicly voiced a wish to end the aid eventually, US senators asked Israeli representatives whether they understood the consequences, Ynet reported.
(jh)
Source: PAP