NATO member states have agreed to a collective budget that will see U.S. spending drop from 22 percent to 16 percent.
According to CNN, the White House has bargained for a significant reduction in its contributions to the North Atlantic Treaty Organization’s collective budget, reaching an agreement with member states this week to shave the U.S. money while other countries will boost their own contributions.
Compared to its overall defense spending the USA's direct NATO budget is relatively small. Previously, the U.S. provided about $550,000,000, but that will shrink to about $400,000,000. The budget "covers the cost of maintaining the NATO headquarters, joint security investments and some combined military operations."
By comparison, overall spending on defense by member countries will top $1 trillion.
"All Allies have agreed a new cost sharing formula. Under the new formula, cost shares attributed to most European Allies and Canada will go up, while the US share will come down. This is an important demonstration of Allies' commitment to the Alliance and to fairer burden-sharing," a NATO official told the news outlet.