In recent years, the total amount of US financial support available to Latvia for defense projects through various funding programs has reached approximately 700 million dollars (595.4 million euros). So far in 2025, Latvia has been allocated around 90 million dollars, the Ministry of Defense (MoD) told LETA.
The MoD noted that the US has long provided different types of assistance to strengthen Latvia’s defense capabilities, including financial aid through multiple instruments. A significant increase came in 2020 with the creation of the Baltic Security Initiative (BSI), approved by the US Congress, which sets the level of U.S. defense support for Latvia, Lithuania, and Estonia.
In addition to BSI, the U.S. provides support through other programs and funding sources. Between 2020 and 2025, Latvia has been allocated about 700 million dollars across various financial instruments, including roughly 90 million dollars so far this year.
The funding has been used for direct investments in the development of Latvia’s National Armed Forces (NBS), including equipment deliveries, integration of systems, training, initial maintenance, and repairs. U.S. programs have also supported personnel training in the US, joint military exercises, and infrastructure development linked to US troop presence in Latvia.
However,
the MoD confirmed that the US Department of Defense is reviewing expenditures
and has proposed cutting some defense funding for European allies. This reduction would affect the BSI program in the next fiscal year, potentially by around 58 million dollars. Broader discussions on other programs are ongoing as part of the U.S. budget process.
Since 2022, Latvia has received about 121 million dollars through the Foreign Military Financing program and 1.3 million dollars through International Military Education and Training. “We have made clear that this funding supports strategic and industrial cooperation and has enjoyed backing in the US Congress. We will continue discussions with our allies to emphasize its importance. At the same time, the US-Latvia strategic partnership continues both bilaterally and within NATO, through troop and equipment presence, joint training, and intelligence sharing,” the MoD stressed.
Recently, the US House of Representatives approved provisions in the 2026 National Defense Authorization Act (NDAA) to strengthen the BSI – the first step toward formal approval. Both Democrats and Republicans supported the move.
Under the BSI, the U.S. provides funds for Baltic countries to purchase American-made weapons, train personnel, and receive intelligence support. Yet, the Financial Times reported that Pentagon officials had informed European diplomats in late August that
the US would no longer finance programs for training and equipping NATO forces along Russia’s border
– a change that could directly impact the BSI.
During House debates, Congressman Salud Carbajal, co-chair of the Baltic Caucus, called the potential funding cuts a “huge gift to Vladimir Putin” and a dangerous signal to the Kremlin. Proponents of continued funding stressed that the Baltics already spend well above NATO’s defense spending minimum and plan to invest over 5% of GDP in defense next year. Republican Congressman Mike Turner highlighted that the Baltics have contributed roughly 10 dollars for every 1 dollar of US funding through the BSI.
Congressman Don Bacon, also a co-chair of the Baltic Caucus, called the Pentagon’s proposed cuts “a disgraceful decision” that would raise the risk of conflict in Europe. Meanwhile, Kyiv Post, citing two congressional staffers, reported that the House vote demonstrates lawmakers’ clear intent to preserve and strengthen U.S. security commitments to the Baltic allies – regardless of possible policy shifts by the executive branch.
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