The United States is urging Japan to nearly triple the funding it provides for the upkeep of American troops stationed on its territory. Washington wants Tokyo to cover more than 3 trillion yen, or around 19 billion dollars, over a five-year period beginning in the Japanese fiscal year 2027.
The demand is significantly higher than Japan’s current contribution of 211 billion yen annually. The existing agreement between the two countries covers the period from 2022 to 2026 and expires in March 2027.
Tokyo proposes a smaller increase
The Japanese government is considering raising its annual funding to more than 300 billion yen. This would represent a substantial increase from the current level, but would remain well below the US demand for an approximately threefold increase. The difference between the two positions is the main obstacle to concluding the new agreement.
“We will have to find common ground between Japan and the United States,” a source familiar with bilateral relations said. The two countries have been holding working-level talks on the new agreement since July, and another round could take place as early as next week. The goal is to finalize the agreement by the end of the year.
What Japan will fund
Japan’s contribution, long known as the “sympathy budget,” covers the salaries of Japanese employees at American bases, utilities and the relocation of military exercises. Tokyo is also considering larger payments under the facilities improvement program, including the construction and maintenance of housing for American service members.
The US side wants the new package to also include investments to increase the resilience of bases in the event of an attack. Underground or reinforced facilities are being discussed to limit damage to American military infrastructure.
Washington is pressing its allies for larger contributions, and President Donald Trump has repeatedly stated that countries hosting American forces should bear a greater share of the costs. For Tokyo, the issue is linked simultaneously to its alliance with the United States, regional security and pressure on public finances.
The negotiations are expected to continue, with the final amount of Japan’s funding to form part of the new five-year agreement.