Trump Administration Moves To Cut Financial Contributions To NATO
According to CNN, the Trump administration has significantly pared back its contributions to the North Atlantic Treaty Organization’s collective budget, reaching an agreement with member states this week to shave the U.S. contribution while other countries will boost their own.
The move is largely symbolic, CNN reported, as NATO’s direct budget is relatively small and separate from defense spending. Previously, the U.S. provided about 22 percent of the $2.5 billion budget, but that will shrink to 16 percent. 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.