Published by Global Banking & Finance Review®
Posted on September 4, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleThe US plans to reduce security funds for countries near Russia, impacting European defense. This follows Trump's 'America First' policy.
WASHINGTON (Reuters) -The United States will phase out some security assistance for European countries near the border with Russia, two sources familiar with the matter said on Thursday.
The plan comes as President Donald Trump pursues his "America First" foreign policy, in which his administration has slashed foreign aid and is pushing European countries to cover more of the cost of their own military.
It was first reported by the Financial Times.
Russia's war with Ukraine has heightened concerns in Europe about regional instability and the possibility of further aggression from Moscow. Key recipients of the funding include Estonia, Latvia, and Lithuania.
The U.S. Congress has approved funding for the assistance plan, which comes under the Department of Defense, but only through the end of September 2026. Trump's administration has not asked that the program be extended, according to the Financial Times report and confirmed by one of the sources.
Asked for comment, a White House official referred to an order Trump signed shortly after beginning his second term in January.
"On day one of his second term, President Trump signed an Executive Order to reevaluate and realign United States foreign aid," the official said.
"This action has been coordinated with European countries in line with the Executive Order and the President’s longstanding emphasis on ensuring Europe takes more responsibility for its own defense," the official said.
Senator Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, called the decision misguided.
"It makes no sense at all to undercut our allies’ defense readiness at the same time that we’re asking them to step up their own capabilities, and it puts American troops at risk when we slash the training of the allied soldiers they would fight alongside," she said in a statement.
(Reporting by Patricia Zengerle and Andrea Shalal;Editing by Rod Nickel)
The reduction is part of President Trump's 'America First' foreign policy, which aims to cut foreign aid and encourage European countries to take on more defense responsibilities.
Key recipients of the funding include Estonia, Latvia, and other European countries near the Russian border.
The U.S. Congress has approved funding for the assistance plan only through the end of September 2026.
Senator Jeanne Shaheen criticized the decision as misguided, arguing that it undermines allies' defense readiness while asking them to enhance their capabilities.
On his first day of the second term, President Trump signed an Executive Order to reevaluate and realign United States foreign aid.
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