TEL AVIV — Israeli President Isaac Herzog has expressed profound shock following U.S. President Donald Trump's sudden announcement that Washington will terminate its financial assistance to Israel by the end of the year. The unexpected policy shift comes at a delicate political crossroads for the nation, which is currently navigating a chaotic post-election government formation process.

According to CNN, Herzog characterized the development as a bolt from the blue during a meeting with opposition leader Gadi Eisenkot, who heads the Yashar party and is a primary rival of Prime Minister Benjamin Netanyahu.

"The issue concerning American aid is deeply concerning, and this news hit me like a sudden storm out of clear skies," Herzog told Eisenkot. He stressed that Israel and the United States share a memorandum of understanding (MOU) valid through 2028, making political stability and rapid government formation imperative rather than plunging the country into repeated elections.

The diplomatic friction began when Trump revealed during a telephone interview with Fox News on Tuesday—coinciding with the U.S. midterm elections—that military funding to Israel would wrap up in 2024. This timeline moves up the expiration date of the annual $3.8 billion defense assistance pact by two years, though the U.S. leader offered minimal specifics. Prime Minister Netanyahu has yet to issue a direct public response.

Defending the move on Fox News, Trump questioned the sustainability of perpetual multi-billion-dollar packages, stating that while Israel remains a top priority and has historically received massive backing, it no longer requires the same level of assistance.

Meanwhile, U.S. Ambassador to Israel Mike Huckabee told Channel 12 News that officials are actively trying to ascertain the practical implications of Trump's declaration. Huckabee, a staunch defender of military assistance despite its declining bipartisan appeal in Washington, argued that the alliance yields profound strategic returns for American taxpayers.

"Americans need to recognize the value of this partnership; it is not just about what we pour in, but what we gain," Huckabee remarked. He also distanced himself from Vice President JD Vance, who recently suggested on X that close alignment with Israel contributed to the Republican midterm setbacks, asserting that support for Israel remains a winning proposition within conservative circles.

On the domestic front, President Herzog faces a critical constitutional decision. Following last month's national election, Herzog concluded two days of consultations with newly elected members of the Knesset. Lawmaker Gadi Eisenkot successfully garnered enough backing to secure a parliamentary majority, amassing 67 seats. However, that total includes 19 seats held by Arab-majority parties, complicating the path to unseating the long-serving incumbent.

Conversely, Netanyahu's coalition prospects suffered a severe blow when an ultra-Orthodox partner withheld support, leaving the premier with only 46 seats—far short of the 61-seat threshold needed for a governing majority.

Herzog is slated to formally designate a candidate to build the next governing coalition. "While the outcome of consultations might seem apparent, the law mandates that I evaluate who genuinely has the capability to assemble a stable administration, and that remains entirely clear-cut," Herzog noted. The Yashar party issued a statement expressing strong confidence that it will be entrusted with the mandate.

Once designated, the candidate will have 28 days to negotiate cabinet portfolios, budgetary allocations, and policy agendas with potential coalition partners, with a possible 14-day extension. Failure to form a government would shift the mandate to an alternative candidate or risk triggering a fresh round of elections. In the interim, Netanyahu will continue to serve as head of a transitional caretaker government.

Despite the shifting political tide, Netanyahu continues to dispute the election outcome, accusing Arab factions of manipulating the vote through illicit funding and electoral fraud. Simultaneously, opposition figures have accused the prime minister of attempting to delay the upcoming Knesset inauguration scheduled for November 10 and obstructing efforts to replace the parliamentary speaker with an opposition figure.

[Copyright (c) Global Economic Times. All Rights Reserved.]