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NATO Leaders Agree to Raise Defense Spending to 5% of GDP by 2035

Non-binding pledge to reach 5% of GDP meets Trump’s defense spending demand with room for reservations via a planned 2029 progress review

President Donald Trump arrives at Dutch royal palace during NATO summit
Russia's Foreign Minister Sergei Lavrov speaks during a joint press conference with Laos's Minister of Foreign Affairs Thongsavanh Phomvihane following their meeting in Moscow, Russia June 26, 2025. Alexander Zemlianichenko/Pool via REUTERS
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Overview

  • Allies will allocate at least 3.5% of GDP to core defense requirements and up to 1.5% to security-related measures such as cyber safeguards and infrastructure resilience by 2035.
  • The agreement requires credible annual spending plans and schedules a comprehensive review in 2029 to adjust trajectories in response to shifting strategic and economic conditions.
  • President Trump hailed the pact as a major victory after years of urging NATO members to boost military outlays, and the U.S. is now expected to press Asian partners like South Korea and Japan to follow suit.
  • Analysts estimate meeting the new benchmark will add about $800 billion in annual defense costs by 2035, prompting concerns over cuts to social programs and environmental initiatives and drawing objections from Spain.
  • Russian Foreign Minister Sergei Lavrov downplayed the security impact on Moscow even as NATO reaffirmed its Article 5 collective defense commitment and vowed continued support for Ukraine’s defense capabilities.