NATO Common Funds Burden sharing: Background and Current Issues

Carl Ek
Specialist in International Relations

Member states of the North Atlantic Treaty Organization (NATO) contribute to the activities of the alliance in several ways, the chief of which is through the deployment of their own armed forces, funded by their national budgets. Certain commonly conducted activities, however, are paid for out of three NATO-run budgets. These three accounts—the civil budget, the military budget, and the security investment program—are funded by individual contributions from the member states. The countries' percentage shares of the common funds are negotiated among the members, and are based upon per capita gross national income and several other factors. The U.S. shares for the three funds, which have fallen over the past three decades, currently range from about 22%-25%. Twelve central and eastern European nations were admitted into the alliance in 1999, 2004, and 2009. As NATO has expanded, it has incurred certain additional costs to accommodate the new members. These costs are being shared by all, including the new countries. In 2005, members of the alliance adopted new burden sharing arrangements; the U.S. level, however, was limited to its current share. Additional changes in the cost share formulas are under review. Congress will likely examine U.S. contributions to the NATO budgets in the context of the Defense and State Departments' appropriations.


Date of Report: April 22, 2010
Number of Pages: 12
Order Number: RL30150
Price: $29.95

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