Stutzman: End $3.8B Israel aid, shift to defense-trade pact

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- Marlin Stutzman (R-Ind.) introduced a nonbinding resolution to move the US-Israel relationship from direct financial assistance to a framework of "mutual defense cooperation and joint economic investment" after the current memorandum expires in 2028.
- Stutzman said the proposal originated from Israeli contacts who suggested replacing the current $38 billion-over-10-years supplemental with a trade and defense agreement; he vetted the approach with Israeli Ambassador Yechiel Leiter before his May trip to Israel.
- PM Netanyahu publicly called in January for Israel to reduce dependence on American military aid and endorsed the cooperation framework in a June 1 letter displayed in Stutzman's office, writing that "the time has now arrived for us to move from aid recipient to partner."
- The current US-Israel Memorandum of Understanding delivers roughly $3.8 billion annually ($10.4 million per day) and expires in 2028; Stutzman said any savings should go to deficit reduction, explicitly ruling out redirecting funds to domestic programs like healthcare or education.
- The resolution praises Israel for its role in military operations against Iran and condemns antisemitism, but does not define what constitutes "delegitimization" of Israel or who decides — a notable omission amid ongoing disputes over classifying anti-Zionist speech.
- Stutzman distinguished his resolution from the FUTURES Act and Section 224 of the FY2027 NDAA (originating in Ronny Jackson's office), which would formalize US-Israel defense tech cooperation, dismissing "merge our militaries" claims as "BS."
- Stutzman defended Israel's Gaza campaign against Hamas, said Hamas cannot remain in power, and said Gaza "has to be turned back into Trump land" with international investment, while acknowledging the possibility that innocent people were killed.
Why it matters: Stutzman is a budget hawk explicitly trying to pre-empt younger conservatives' foreign-aid skepticism to preserve the broader US-Israel relationship — the $3.8 billion annual aid package is now being framed as politically vulnerable by one of its own strongest defenders. His insistence that savings reduce the deficit rather than fund domestic programs locks the political case into spending-cut logic, and the resolution's undefined "delegitimization" clause opens a free-speech fight that headlines about trade pivots will likely miss.




