U.S. Asks Japan to Nearly Triple Its Budget for Hosting American Troops

Japan’s host-nation support budget, long known as the “sympathy budget,” runs through fiscal 2026. Kyodo News puts the current five-year package at 1.06 trillion yen, or about 211 billion yen a year. Jiji Press cites 1,055.1 billion yen, an annual average of about 210 billion yen.

Nikkei reported that Washington has asked Tokyo for more than 3 trillion yen ($18.8 billion) over the next five years, almost triple that level. The figures have not been confirmed by either government.

Tokyo Weighs a Smaller Increase

Japan is considering a smaller rise, to roughly 1.5 trillion yen over five years, sources told Kyodo and Jiji. That would amount to about 300 billion yen a year, or around 1.4 times the current annual average, Nikkei said.

Jiji reported that Tokyo’s estimate reflects the yen’s depreciation and higher prices. “Even the impact of foreign exchange rates alone would increase the amount to about 1.5 times the previous level,” one source said.

A diplomatic source told Kyodo that 3 trillion yen over five years “would be difficult to accept,” but that “there is a possibility to pay around 1.5 trillion yen.”

What the Package Covers

Host-nation support pays for utilities at U.S. facilities, wages for Japanese employees on base, facility improvements and, Asahi Shimbun said, the relocation of military exercises. It is renegotiated every five years under a special bilateral agreement, Nikkei reported.

Tokyo is reportedly considering more spending under the Facilities Improvement Program, which includes U.S. military housing, and higher labor costs. Kyodo said the next package is also expected to fund work to harden U.S. facilities, including moving some functions underground and reinforcing buildings against explosions and electromagnetic attacks.

The current package, agreed under the Biden administration, funds advanced systems for joint training. The demand lands as Tokyo debates cuts to planned F-35 and missile orders and a defense buildup of up to about $500 billion.

Talks Target a Year-End Deal

The current agreement expires in March 2027. Talks on a replacement have been under way since July, Asahi reported, and got into full gear in Tokyo this summer, Kyodo said. Another round is expected possibly next week, with both governments aiming to agree by year-end.

Tokyo sees an increase as unavoidable, Asahi reported, but its figure remains far below Washington’s demand. “We will need to find common ground between Japan and the United States,” a source familiar with bilateral relations said.

President Donald Trump has long complained that Japan does not pay enough to host American forces, Asahi reported, and pressed Tokyo in his first term, Kyodo said. The demand sits alongside earlier U.S. pressure on Japan’s defense spending, which Tokyo denied included a 3.5% of GDP request.