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U.S. informed Europe of cuts to military aid, Lithuania says

Published by Global Banking & Finance Review

Posted on September 5, 2025

3 min read

· Last updated: January 22, 2026

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VILNIUS (Reuters) -The U.S. Department of Defense informed European countries last week that military support under a program known as Section 333 will be cut to zero from the next fiscal year, a

U.S. Military Aid Cuts to Europe: Lithuania Confirms Notification

Impact of U.S. Military Aid Cuts on Europe

By Andrius Sytas

Details of Section 333 Funding

VILNIUS (Reuters) -The U.S. Department of Defense informed European countries last week that military support under a program known as Section 333 will be cut to zero from the next fiscal year, a Lithuanian defence ministry official said on Friday.

Responses from Baltic States

Two sources familiar with the matter said on Thursday the United States will phase out some security assistance for European countries near the border with Russia, raising concerns among key recipients such as Lithuania, Estonia and Latvia - former Soviet republics now in NATO and the European Union.

Future Defense Spending Plans

Lithuania's Defence Ministry Policy Director Vaidotas Urbelis told reporters in Vilnius that, last week, the U.S. Department of Defense told Europeans that the Section 333 programme "will be set at zero for all European countries" from the next financial year.

Section 333 is an authority under which the U.S. provides training and equipment to enhance the security of partner states.

The cuts, which need to be confirmed by Congress, do not affect the deployment of U.S. troops, nor the support through the separate U.S. programme called Foreign Military Financing, which is administered by the U.S. Department of State, he said.

Lithuania has suggested it take over part of the funding of the separate Baltic Security Initiative support programme, which is focused on the three Baltic states and is also under review by the U.S. Department of Defense, he added.

IMPORTANT SIGNAL

The U.S. military assistance "has served as a very important political signal of U.S. support", Estonian Defence Ministry spokesperson told Reuters in an email that did not confirm or deny the move

"Security assistance to the Baltic States has so far been a strongly supported programme", she added. "(It) has enabled us, among other things, to accelerate critical capability development and to choose U.S. equipment".

The Baltic States plan to spend 6.3 billion euros in 2025, about 3-4% of their gross domestic product (GDP), almost three times more than before Russia's 2022 invasion of Ukraine.

All three expect to further increase defence spending to over 5% of GDP next year.

Lithuania has received $200.3 million of Section 333 funding over the financial years 2018-2022, and Latvia and Estonia a total of $360.2 million over the financial years 2018-2021, according to the U.S. State Department.

The Estonian Defence Ministry spokesperson suggested it could continue: "The current administration's direction is to significantly cut foreign aid, but the final allocations will be determined... between the administration and Congress".

(Reporting by Andrius Sytas, editing by Terje Solsvik and Philippa Fletcher)

Key Takeaways

  • U.S. plans to cut military aid under Section 333 to zero.
  • Baltic States express concern over reduced security assistance.
  • Lithuania suggests taking over part of Baltic Security Initiative funding.
  • Cuts do not affect U.S. troop deployment or Foreign Military Financing.
  • Baltic States plan to increase defense spending significantly.

Frequently Asked Questions

What is the Section 333 program?
Section 333 is an authority under which the U.S. provides training and equipment to enhance the security of partner states.
How much funding has Lithuania received from Section 333?
Lithuania has received $200.3 million of Section 333 funding over the financial years 2018-2022.
What are the implications of the U.S. military aid cuts?
The cuts signal a reduction in U.S. support for European countries near the border with Russia, raising concerns among key recipient nations.
What are the Baltic States planning for defense spending?
The Baltic States plan to spend 6.3 billion euros in 2025, which is about 3-4% of their GDP, and expect to further increase defense spending to over 5% of GDP next year.
Will U.S. troops still be deployed in Europe?
The cuts to military aid do not affect the deployment of U.S. troops or the support through the separate U.S. program called Foreign Military Financing.

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