US demands Japan nearly triple troop-hosting costs to over $19B from 2027

Funding request

The administration of US President Donald Trump has demanded that Japan nearly triple its financial contribution toward hosting American troops, raising it to more than 3 trillion yen ($19 billion) over five years beginning in fiscal 2027, local media reported Friday. Kyodo News reported that Tokyo is considering an approximately 1.5 trillion yen ($9.5 billion) counteroffer, citing diplomatic sources familiar with the negotiations and the difficulty of meeting Washington's demand.

A diplomatic source said, “While 3 trillion yen over five years would be difficult to accept, there is a possibility to pay around 1.5 trillion yen,” The proposed agreement would cover fiscal 2027 through 2031, replacing the current five-year arrangement valued at 1.06 trillion yen ($6.7 billion), which expires next March.

Negotiations and facilities

Negotiations began in Tokyo this summer. Another round is expected next week as both governments seek an agreement before year-end.

The proposed package could include annual spending exceeding 300 billion yen to strengthen US military facilities against potential attacks. According to the report, Japan is considering relocating base functions underground and reinforcing structures against explosions and electromagnetic attacks.

US-Japan military ties

Trump had also pressed Tokyo during his first presidential term to shoulder a larger share of American military costs.

Japan is one of Washington's oldest military allies in the Asia-Pacific region. It hosts more than 50,000 US military personnel alongside extensive American bases and military assets.