The State Department notified Congress on Thursday of its intent to release the funds.
The United States' government has announced that Washington will allocate $3.5 billion to Israel for the purchase of American weapons and military equipment.
The funding, approved by Congress during Israel's conflict in Gaza, is part of a broader $14 billion supplemental aid package passed in April, Reuters reports.
The State Department notified Congress on Thursday of its intent to release the funds.
The ongoing violence in the Middle East has heightened concerns of a broader conflict, especially following the recent killings of Hamas leader, Ismail Haniyeh, in Iran and Hezbollah military commander, Fuad Shukr, in Beirut, which have prompted threats of retaliation against Israel.
The latest escalation in the long-standing Israeli-Palestinian conflict began on October 7, when Hamas launched an attack on Israel, killing 1,200 people and taking approximately 250 hostages, according to Israeli sources.
In response, Israel's military operations in Gaza have reportedly killed nearly 40,000 Palestinians, displaced nearly the entire population of 2.3 million, and triggered a severe humanitarian crisis.
Israel denies accusations of genocide stemming from these actions.