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Israel can afford to lose US aid

August 10, 2026
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Israel can afford to lose US aid
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This story appeared in Today, Explained, a daily newsletter that helps you understand the most compelling news and stories of the day. Subscribe here.

President Donald Trump may have to settle for the hand-me-down Nobel Prize medal that he scored several months ago. Despite their best efforts, his envoys don’t seem to be having much luck advancing a peace deal in Gaza.

Over the weekend — just days after Trump announced a “HISTORIC” agreement to gradually disarm Hamas and stand down Israeli troops — Israeli Prime Minister Benjamin Netanyahu rejected the framework.

The plan, brokered by Trump’s Board of Peace, would have seen both sides ramp down in tandem. But that’s apparently a nonstarter for Netanyahu, who said Hamas must disarm before Israeli troops withdraw. Israel still controls about 70 percent of the Gaza Strip, according to NPR — and has continued launching attacks in the territory, even after an October ceasefire.

What happens if the US cuts off aid to Israel?

It’s the latest setback in what has been a long and ugly conflict — a conflict that has turned many Americans against their longtime ally, Israel. Against that backdrop, some Democratic lawmakers and pro-Palestinian activists are advancing a once-fringe policy in the hopes of forcing Israel to end the war in Gaza and change its course in the occupied West Bank: cutting off military aid to Israel.

It’s an intuitive approach to behavior modification, familiar to any parent who has denied a child a desired toy or treat: withhold something they want until they behave. But Israel, in this admittedly imperfect metaphor, is not a toddler. It’s a full-grown adult with a $600 billion economy and a mind of its own…and it can absolutely buy its own drones and missile-defense systems.

Here’s a statistic that really drove that point home for me: In 2025, Israel spent about 7.9 percent of its GDP on its military, plus US aid. To sustain that level of military investment without US support, Israel would need to allocate 8.5 percent of GDP to its military. Not exactly a massive change.

There are other valid arguments for the US to end Israeli aid, of course. (Among the most common: to avoid complicity in war crimes and possible genocide in the Gaza Strip.) But if US lawmakers hope to force Israel’s hand, on the two-state solution or anything else, then cutting military aid probably won’t provide enough leverage.

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