The government is considering hiking its annual contribution for U.S. forces in Japan to more than 300 billion yen ($1.9 billion) under a new five-year agreement starting in fiscal 2027, government sources said.
However, Washington is seeking a far steeper increase, asking Tokyo to roughly triple its current annual contribution of 211 billion yen. The two sides aim to reach a deal by year-end.
Japan covers costs including wages for Japanese workers at U.S. bases, utilities and the relocation of military exercises under a bilateral agreement renewed every five years. The contribution has long been known as the “sympathy budget.”
The current agreement expires in March 2027. Foreign and defense officials representing both countries have held talks on a replacement contract since July.
Tokyo sees an increase as unavoidable but its tentative contribution remains far below Washington’s demand, leaving a wide gap between the two sides.
“We will need to find common ground between Japan and the United States,” a source familiar with bilateral relations said.
U.S. President Donald Trump has long complained that Japan does not pay enough to host American forces and has pressed Tokyo and other allies to shoulder more of the cost of stationing U.S. troops abroad.
Japan is considering substantially increasing spending under its Facilities Improvement Program, or FIP, which covers projects including U.S. military housing.
Tokyo is also weighing higher labor costs for Japanese base workers and funding underground or reinforced facilities to limit damage if U.S. bases in Japan are attacked.