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US to cut some security funds for countries bordering Russia, sources say

Published by Global Banking & Finance Review

Posted on September 4, 2025

2 min read

· Last updated: January 22, 2026

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US to cut some security funds for countries bordering Russia, sources say
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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

US to cut some security funds for countries bordering Russia,

US Security Assistance Changes

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.

Impact on European Defense

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.

Political Reactions

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)

Key Takeaways

  • US to phase out security assistance for countries near Russia.
  • Trump's 'America First' policy influences the decision.
  • Key funding recipients include Estonia, Latvia, and Lithuania.
  • Congress approved funding only until September 2026.
  • Political reactions highlight concerns over defense readiness.

Frequently Asked Questions

What is the reason for the reduction in security assistance?
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.
Which countries are primarily affected by this funding cut?
Key recipients of the funding include Estonia, Latvia, and other European countries near the Russian border.
What is the duration of the approved funding for the assistance plan?
The U.S. Congress has approved funding for the assistance plan only through the end of September 2026.
How has the decision been received politically?
Senator Jeanne Shaheen criticized the decision as misguided, arguing that it undermines allies' defense readiness while asking them to enhance their capabilities.
What executive action did President Trump take regarding foreign aid?
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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