On February 3, the U.S. Congress approved $200 million in security assistance for Estonia, Latvia, and Lithuania under the Baltic Security Initiative (BSI)—a joint U.S.-Baltic program designed to bolster the defensive capabilities of the region. Furthermore, Estonia was granted an additional $10 million through the Foreign Military Financing (FMF) program.

BSI funds are distributed annually among the three Baltic nations "according to capability needs."

The supplemental $10 million via the FMF program is funded through the U.S. foreign operations budget. The Estonian government has previously utilized similar funds to procure ammunition for HIMARS systems, Javelin missiles, and large-caliber artillery shells.

Key Statements

Hanno Pevkur, Minister of Defence: "Estonia enjoys very strong support in the U.S. Congress. The U.S. Secretary of Defense and members of Congress have repeatedly confirmed that Estonia and the other Baltic states are model allies, and today's funding decision certainly reflects that."

Margus Tsahkna, Foreign Minister: Tsahkna noted that U.S. aid has allowed Estonia to "steadily increase defense investments and accelerate capability development," adding that the country "highly values the support of the U.S. Congress and the American people."

Tsahkna also highlighted that in 2026, Estonia's defense spending will exceed 5% of its GDP, placing the country among the first NATO members to reach the alliance's new target levels.

Background and Context The BSI was established in 2020 to enhance the defense capabilities and interoperability of the Baltic states. Funding has seen steady growth over the years: approximately $169 million in 2021, $180 million in 2022, $225 million in 2023, and $231 million in 2025, according to U.S. Congress data.

In September 2025, parliamentarians from Estonia and its neighbors sent a letter to the U.S. Congress urging the continuation of BSI funding following reports of potential program scale-backs. They emphasized the strategic value of the initiative and the countries' significant contributions to their own defense.

The Broader Landscape While the U.S. remains the primary source of military aid for the Baltics and Europe through BSI and FMF, the European Union is also discussing major initiatives. These include "SAFE," a proposed €150 billion defense investment fund intended to strengthen the European defense industry. These efforts complement broader support for NATO allies and ongoing assistance to Ukraine under separate funding frameworks.