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Trump admin warns Iraq over Iran terror proxies as US reportedly blocks cash payments

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The Trump administration has reportedly ramped up its punitive measures to compel Iraq to disband Iranian regime-backed militias known as the Popular Mobilization Force (PMF) that form part of its government after sustained attacks on U.S. personnel and facilities.

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Amid a tenuous ceasefire between the U.S. and the Islamic Republic of Iran, the administration tightened the screws on Iraq by stopping U.S. dollar shipments to Baghdad. The growing disagreements over policy between the U.S. and Iraq could lead to weakening Iran’s presence in the region and advance U.S. war aims against Tehran.

In a statement against Iraq’s government, a State Department spokesperson told Fox News Digital, «The United States has consistently been clear we will take all measures to counter Iran’s destabilizing activities in Iraq, protect U.S. interests against Iran-aligned terrorist militias in Iraq, and make clear our concerns about the Iraqi government’s failure to prevent this terrorism.»

US WARNS IRAQ MUST ACT AGAINST IRAN-BACKED MILITIA ATTACKS ON AMERICAN ASSETS

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An explosion occurred near the U.S. Consulate and Erbil International Airport, where a U.S. military base is located, in Erbil, Iraq, on March 12, 2026, causing fire and thick smoke to rise following the blast. (Ahsan Mohammed Ahmed Ahmed/Anadolu)

The spokesperson added that «While we acknowledge the efforts of Iraqi Security Forces to respond to terrorist attacks by Iran-aligned militia groups, we continue to emphasize that the Iraqi government’s failure to prevent these attacks while some elements associated with the Iraqi government continue to actively provide political, financial, and operational cover for the militias adversely impacts the U.S.-Iraq relationship. The United States will not tolerate attacks on U.S. interests and expects the Iraqi government to immediately take all measures to dismantle the Iran-aligned militia groups in Iraq.»

The Wall Street Journal first reported last week about the security and financial penalties imposed on Iraq. According to the report, the U.S. halted security cooperation programs with Iraq’s military and stopped «a cargo-plane delivery of nearly $500 million in U.S. banknotes, the proceeds from Iraqi oil sales from Federal Reserve Bank of New York accounts.»  

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The newspaper said it was the second blocked delivery of dollars to the Central Bank of Iraq since the start of the U.S.-Israel war on Feb. 28 against Iran. 

The Treasury Department declined to comment on the blocked payments.

Iraqi security forces standing guard during a funerary procession in Baghdad

Iraqi security forces stand guard during a funerary procession in Baghdad on March 8, 2026, for a slain member of the Popular Mobilisation Forces killed in a U.S.-Israeli airstrike in Mosul the previous evening. (Ahmad Al-Rubaye/AFP)

An Iraqi official told Fox News Digital that «With regard to relations with the United States, Iraq views them as an important partnership based on shared interests and cooperation. The two sides have fought together in a decisive battle against ISIS, reflecting the depth and significance of this relationship.»

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In reference to the pro-Iran militias, the Iraqi official said, «As for the issue of armed factions, it is important to note that the Iraqi reality is highly complex, with overlapping political, security and social dimensions. Some of these factions also possess political and popular influence. Accordingly, addressing this issue requires careful and gradual approaches grounded in a deep understanding of the domestic context, in a way that strengthens state authority and ensures that weapons are confined to the hands of the state while maintaining internal stability.»

TRUMP THREATENS TO END IRAQ SUPPORT OVER AL-MALIKI COMEBACK BID TIED TO IRAN INFLUENCE

A billboard featuring a photo of Ali Khamenei along a street in Baghdad

A billboard featuring a photo of Iran’s supreme leader Ali Khamenei is seen along a street in Baghdad on March 9, 2026. (Murtadha Al-Sudani/Anadolu)

The official added that «External measures that fail to take into account the particularities of this reality may lead to counterproductive outcomes and negatively affect internal balances, which would not serve the stability efforts undertaken by Iraq and its partners, foremost among them Washington.»

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The PMF is an umbrella organization of militias largely loyal to the Islamic Republic of Iran — the world’s worst state-sponsor of terrorism, according to the State Department. Members of the PMF have launched attacks on U.S. assets in Iraqi Kurdistan and against Iraqi Kurds — a valuable U.S. ally in the Mideast.

A senior Kurdish official told Fox News Digital, «The dollar pause is part of the nuclear option in the Treasury Department, and the Americans have always been reluctant to leverage it. The Iraqis, meanwhile, have been cruel to their partners — Americans and the KRG [Kurdish Regional Government], as this war has shown — and now Washington is drawing a red line.»

The Kurdish official said, «They’ve made it clear things will only get worse for Iraq if militias resume attacks against U.S. interests, including in the Kurdistan Region. It’s high time the Americans pulled this lever; for too long, it has allowed Iran to pick a premier and dictate the rules, despite repeated encouragement to veto Iran’s cut-outs in Iraq.»

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Both Iraqi and Kurdish officials said the government is in flux as the differnt sides position themselves to select a new Iraqi prime minister.

IRAQI STATE BANK ACCUSED OF PROCESSING PAYMENTS FOR HOUTHI TERRORISTS WHO DISRUPT RED SEA COMMERCE

Smoke rising from the U.S. embassy building in Baghdad

Smoke rises from the U.S. embassy building in Baghdad, Iraq, on March 14, 2026, following an attack on the diplomatic mission. (Ali Jabar/AP)

The Trump administration opposes the return of former Iraqi Prime Minister Nouri al-Maliki because of his close ties to Iran. 

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The Kurdish official stressed the role of the majority Shiite population in Iran: «In the end, though, it’s still the Shia house that chooses the premiership. They have some latitude, but ultimately, they will select a candidate acceptable to both Iran and the United States. That’s the game — and America has always reacted to Iran’s game. This time, however, Washington appears intent on influencing the outcome rather than just observing it.»

The official added, «This matters especially because Iraq depends on oil, and its proceeds are deposited in the U.S. Federal Reserve and American banks. How Washington behaves vis-à-vis those deposits influences the process and reconfigures the balance within the Shia house. It matters enormously.»

Entifadh Qanbar, a former spokesman for the deputy prime minister of Iraq, warned that there is a pressing need for the Iraqi Prime Minister Mohammed Shia’ al-Sudan to swiftly dismantle the PMF because they represent a clear and present danger to the U.S. Embassy in Baghdad.

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Iraqi Shiite men holding pictures of Ayatollah Ali Khamenei during a gathering in Najaf

Iraqi Shiite men hold pictures of Iranian Supreme Leader Ayatollah Ali Khamenei during a symbolic funeral in Najaf, Iraq, on March 1, 2026. (Anmar Khalil/AP)

He told Fox News Digital, The Iraqi government also provides these groups with state identification cards, vehicles, and official government license plates under the cover of the PMF structure. This allows them to enter Baghdad’s high-security Green Zone at will and threaten the U.S. Embassy or any Iraqi state institution.»

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To underscore the dangers of the PMF, the U.S. Department of Justice announced on Monday a $10 million bounty on the terrorist leader of the pro-Iranian militia Harakat Ansar Allah al-Awfiya (HAAA).
 

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The U.S. embassy on Monday wrote on X that the pro-Iran militia «Harakat Ansar Allah al-Awfiya (HAAA) terrorists have launched attacks across Iraq and the region, including the April 8 ambush of U.S. diplomats near the Baghdad International Airport.  HAAA terrorists continue to undermine Iraqi sovereignty while threatening the safety and security of both Iraqi and U.S. civilians.  We will not tolerate attacks on U.S. interests and expect all measures will be taken to dismantle Iran-aligned terrorist militia groups in Iraq.»
 



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Trump advirtió que EEUU destruirá el uranio iraní con o sin acuerdo de paz

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Donald Trump durante un evento en Custer Farms, en Chippewa Falls, Wisconsin, el 5 de junio de 2026, donde concedió una entrevista a NBC News sobre el estado de las negociaciones con Irán. (REUTERS/Nathan Howard)

El presidente Donald Trump afirmó este domingo que Estados Unidos está dispuesto a trabajar junto a Irán para retirar y destruir su uranio altamente enriquecido si logra cerrar un acuerdo de paz, pero advirtió que en ausencia de un pacto continuará degradando militarmente al país hasta poder hacerlo de forma unilateral. Las declaraciones se producen cuando la guerra entre ambos países cumple 100 días y las negociaciones parecen estancadas, en medio de una nueva escalada de hostilidades en el estrecho de Ormuz.

“Si hacemos un trato y somos amigos, iremos juntos. Usaremos nuestro equipamiento. Lo sacaremos y lo destruiremos, ya sea en el lugar o fuera de él”, dijo Trump en una entrevista con el programa Meet the Press de NBC News grabada el 5 de junio en Chippewa Falls, Wisconsin. “E iremos con ellos o sin ellos. Pero no vamos a tener gente disparándonos”.

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Un hombre sostiene un cartel con la imagen del líder supremo iraní Mojtaba Khamenei durante el acto por el 37° aniversario de la muerte del ayatolá Ruhollah Khomenini, en su mausoleo al sur de Teherán, el 4 de junio de 2026. (Majid Asgaripour/WANA/Reuters)
Un hombre sostiene un cartel con la imagen del líder supremo iraní Mojtaba Khamenei durante el acto por el 37° aniversario de la muerte del ayatolá Ruhollah Khomenini, en su mausoleo al sur de Teherán, el 4 de junio de 2026. (Majid Asgaripour/WANA/Reuters)

Trump señaló que las negociaciones están “muy cerca” de producir un acuerdo, pero insiste en incorporar una cláusula que prohíba a Irán no solo desarrollar armas nucleares sino también adquirirlas por cualquier vía. “Tienen que tener eso también, porque eso no es desarrollar”, explicó. Según el presidente, Teherán resistió inicialmente esa exigencia pero terminó cediendo: “Empujaron un poco. Y después no”.

Sin embargo, las posiciones de ambas partes siguen alejadas en al menos cuatro frentes: el conflicto en el Líbano, los activos iraníes congelados en el exterior, la energía nuclear y el control del estrecho de Ormuz. Irán exige que cualquier acuerdo con Washington incluya el fin de las hostilidades entre Israel y Hezbollah en territorio libanés, mientras que EE.UU. prefiere tratar ambos temas por separado. En ese contexto, el mediador paquistaní Mohsen Naqvi realizó este domingo una nueva visita a Teherán, donde entregó una “carta especial” al canciller iraní con un “mensaje muy importante” dirigido al líder supremo Mojtaba Khamenei, según la televisión estatal iraní, sin revelar su contenido.

Trump describió al nuevo liderazgo iraní — encabezado por Mojtaba Khamenei, hijo del líder supremo Ali Jamenei, muerto durante la ofensiva estadounidense e israelí — como “más racional, muy inteligente” y se mostró abierto a mantener conversaciones directas con él, aunque aclaró que hasta ahora no ha hablado con él directamente. Sobre su estado físico, señaló que está “gravemente herido” pero que eso implica “cierta valentía” seguir negociando en esas condiciones.

Bañistas en la costa de Bandar Abbas, Irán, con buques de carga anclados en el estrecho de Ormuz al fondo, el 1 de junio de 2026. El paso estratégico, por donde transita cerca del 20% del suministro mundial de petróleo, es uno de los principales puntos de tensión en la guerra entre EE.UU. e Irán. (Amirhosein Khorgooi/ISNA/AP)
Bañistas en la costa de Bandar Abbas, Irán, con buques de carga anclados en el estrecho de Ormuz al fondo, el 1 de junio de 2026. El paso estratégico, por donde transita cerca del 20% del suministro mundial de petróleo, es uno de los principales puntos de tensión en la guerra entre EE.UU. e Irán. (Amirhosein Khorgooi/ISNA/AP)

Esta madrugada, el Mando Central de EE.UU. en Oriente Medio (Centcom) anunció haber derribado dos drones iraníes que amenazaban el tráfico marítimo en el estrecho de Ormuz. El viernes por la noche, el Centcom ya había derribado cuatro drones iraníes lanzados hacia el estrecho y atacado emplazamientos de radares de vigilancia costera iraníes. En represalia, Irán lanzó una andanada de misiles contra instalaciones militares en Kuwait y Baréin, aliados de EE.UU., que denunciaron una “peligrosa escalada”.

El estrecho, ruta de tránsito de alrededor del 20% del suministro mundial de petróleo, permanece cerrado desde el inicio del conflicto y su impacto se siente tanto en los mercados internacionales como en la economía iraní. “La vida se ha vuelto cada vez más difícil, incluso antes de esta guerra. Cosas que hace solo unos meses habríamos podido plantearnos comprar son ahora sueños o cuentos de hadas”, dijo a la AFP Farhad, un chef de 35 años en Teherán.

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A pesar de afirmar que Irán conserva apenas entre el 21% y el 22% de su arsenal de misiles previo a la guerra, Trump descartó retirar a los 50.000 soldados estadounidenses desplegados en la región. “Sería una imprudencia hacerlo porque quizás los necesitemos” para presionar en la mesa de negociaciones, dijo. “Los mantendremos allí hasta que tengamos una conclusión”.

Trump también descartó cualquier descongelamiento inmediato de activos iraníes como parte de un eventual acuerdo, a diferencia del pacto nuclear de 2015 negociado por la administración Obama. “Eso viene después. Si se portan bien, si hacen un buen trabajo, empezamos a hablar”, señaló.

La guerra, desatada el 28 de febrero por los ataques de Israel y EE.UU. contra Irán, es consistentemente impopular en el país: una encuesta Economist/YouGov publicada esta semana indica que el 68% de los adultos quiere que Washington cierre un acuerdo “lo antes posible”, incluido el 55% de quienes votaron por Trump en 2024.

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“Lo principal es que no podemos permitir que Irán tenga un arma nuclear”, cerró Trump. “No podemos hacerlo. Y no lo haremos”.



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Maine GOP hopeful vying for Trump endorsement previously ran birthing clinics catering to migrant women

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Jonathan Bush, a Republican gubernatorial candidate in Maine who has been vying for President Donald Trump’s endorsement ahead of this week’s June 9 primary, previously ran a network of birthing clinics in the San Diego County area that often catered to migrant women, a Fox News Digital review found.

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«Here we were, the largest obstetric practice in San Diego County and our business was mostly Medi-Cal, the state welfare program, and migrant workers. We needed their business and even appealed to them with Spanish-language ads on local TV,» Bush, who was referring to Athena Women’s Health, commonly known at the time as Athena Health, recounted in Where Does it Hurt? — a 2014 book he co-authored.

At its height, Athena Health helped give birth to thousands of children, according to Bush, who opened a network of birthing clinics with his business partner, Todd Park, who would go on to serve years later as the chief technology officer during the Obama administration.

«We actually owned a birth center. And at the height, we were doing 3,000 babies a year,» Bush told the audience on the Venture Fizz Podcast in 2022. «If you multiplied our monthly run rate, maybe 3,300. So really big, prosperous, not prosperous. A lot of low-income families with very low couldn’t, not on Medicaid, had to pay cash, migrant laborers, all kinds of people.»

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FED AUDIT, EMERGENCY MEDICAID U.DERCUT DEMS ON ILLEGAL IMMIGRANT HEALTH COVERAGE

Jonathan Bush pictured in a campaign video in October 2025. (Jonathan Bush for Governor)

Bush’s resurfaced comments about his business raise questions about whether he had knowingly helped women, who may not have been American citizens, secure U.S. citizenship for their children through birthright citizenship and come as he wages a campaign to become the Republican nominee for governor in Maine.

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When pressed by Fox New Digital with questions about Athena’s work with immigrants, the Bush campaign pushed back, arguing that Athenahealth had never offered birthing services and that, as a healthcare software company, it would have been illegal to provide them. 

«To distract from his flailing campaign, 25-year DC lobbyist Bobby Charles continues to lie about my record of creating hundreds of Maine jobs,» Bush said in a statement to Fox News Digital. «Ironically, Lobby Charles – who lied about his military service – lobbied for a liberal pro-illegal immigrant, pro-gun control, pro-birthright citizenship California Democrat Attorney General. Here’s the truth without the Lobbyist Lies: athenahealth/Athena Women’s Health provided software, billing, and management services to 116,000 American doctors.» 

«They have never provided any medical services of any kind. And as I’ve said consistently, I agree with President Trump — illegal immigrants should be deported,» Bush, a first cousin to former President George W. Bush, added.

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While Bush’s statement about Athenahealth not providing medical services with birthing clinics is accurate, the failed venture, Athena Health, that Bush was initially involved with for less than 2 years was operating birthing clinics.

«Our new company started out with twelve clinics scattered through San Diego County,» Bush said in his 2014 book, referring to Athena Health. «The six doctors and thirty-five midwives were doing two thousand births a year. The midwives were all Latinas. They were warm and friendly and supportive, just what our business plan called for.»

A 2005 profile piece also reveals the early days of their main birthing clinic, where they were «listening to the urgent and beautiful sounds of a baby’s first gulps of air from the birthing room nearby.»

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«Jonathan Bush and Todd Park sat in their offices in a San Diego birthing clinic in 1997, listening to the urgent and beautiful sounds of a baby’s first gulps of air from the birthing room nearby. The cries were music for the two fresh-faced former Booz Allen Hamilton health-care consultants, 28 and 24, respectively, who had decided they’d learned enough to run a physician’s clinic better and more efficiently than the doctors could,» the article reads. 

The Foundation for Research on Equal Opportunity also describes Bush’s work with Athena as a «birthing clinic in San Diego.» 

GOP GUBERNATORIAL HOPEFUL BLASTED BY CRITICS FOR ‘LYING’ ON STAGE ABOUT ILLEGAL IMMIGRANT HIRES

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Jonathan J. Bush Jr. smiling and gesturing inside athenahealth office in Watertown Massachusetts

Jonathan J. Bush Jr., president and CEO of athenahealth Inc., expresses enthusiasm during a tour of the Watertown, Mass., company before announcing its expansion into Maine on Nov. 28, 2007. (Gordon Chibroski/Portland Press Herald via Getty Images)

It’s unclear what portion of his clients were migrant women. But from his own comments, the volume appears to have been a significant volume of business.

«‘All migrants all the time.’ It was a laugh line for us, but not a very funny one. This was not the thriving business we envisioned. We were hemorrhaging money,» Bush said in his book.

«A lot of low-income families had to pay cash — migrant laborers, all kinds of people,» he continued.

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Bush, who has been a healthcare technology entrepreneur for decades and is best known for co-founding Athenahealth, a cloud-based software and services company marketed to medical practices, has touted this experience on the campaign trail.

«I’ve made my career disrupting the status quo, creating jobs and helping people achieve their American dream,» Bush, who announced his candidacy for governor in October, said in an announcement video.

During his race, he has positioned himself as a Maine-first candidate, promising to make Maine more of a destination state for businesses and investors by cutting taxes, auditing local government, and increasing energy supplies by tapping into natural gas reserves.

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While he has distanced himself from the MAGA wing of the Republican Party on some issues, he recently told Fox News that «everybody wants endorsements, a giant endorsement like Donald Trump would be phenomenal. He’s held off. This is a purple state…we’d love one.»

Although he has leaned heavily on his business experience to make his pitch to voters, his top GOP opponent, Bobby Charles, believes his birthing clinics and the pitch to migrant women goes against the pro-America, pro-Maine message he’s pitching now.

«It is not surprising to hear Bush now may also have been involved in facilitating illegal immigration. The contrast couldn’t be clearer. I am a pro-Trump conservative who will remove illegals out of the state and ban sharia law. Jonathan ‘Never Trump,’ Bush simply can’t be trusted to do what most Mainers want,» Charles said in a statement to Fox News Digital.

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The Bush campaign strongly pushed back against Charles’ characterization that Bush facilitated illegal immigration or birthright citizenship.

According to the National Immigration Law Center, undocumented immigrants are not eligible to enroll in insurance programs, prompting them to search out services where they can find lower costs and payment flexibility. 

According to Bush, as Athena continued to take on a higher volume of  those clients, the business’s stability weakened.

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MINNESOTA MEDICAID OPERATOR’S BANKRUPTCY-TO-RICHES RISE CRASHES INTO FRAUD PROBE

Demonstrators holding a banner outside the Supreme Court in Washington

Demonstrators hold up a banner during a citizenship rally outside the Supreme Court in Washington on May 15, 2025. (Jose Luis Magana/AP Photo)

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«Our popularity worked against us… Pretty soon, most of our remaining clients were indigent. They were either on Medicaid or they had no insurance at all and paid in cash or promised to pay in cash,» Bush wrote in his book.

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«I’m probably not giving away anything to tell you that it floundered, and then failed,» he continued.

Maine holds its primary election for governor on Tuesday, June 9.

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health care executive, immigration, george w bush, governors, maine

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NATO’s eastern flank races to rearm as Trump pressure exposes Western Europe’s defense gap

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This is part six of a series examining the challenges confronting the NATO alliance.

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As President Donald Trump presses NATO allies to shoulder more of Europe’s defense burden, countries closest to Russia are moving fastest — while some of Western Europe’s biggest economies face growing pressure to catch up. 

Retired Rear Adm. Mark Montgomery, senior director at the Foundation for Defense of Democracies and former deputy director for strategy, policy and plans at U.S. European Command, said the shift is already visible across the alliance.

«Europe is clearly stepping up, but they’re stepping up by geographic variation,» Montgomery told Fox News Digital.

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«If you ask me who’s doing the most, the Eastern Europeans are clearly.»

RUSSIAN DRONES TEST NATO’S ARTICLE 5 DEFENSE GUARANTEE AHEAD OF FRIDAY SANCTIONS DEADLINE

As President Donald Trump presses NATO allies to shoulder more of Europe’s defense burden, countries closest to Russia are moving fastest. (Burak Akbulut/Anadolu via Getty Images)

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Montgomery pointed to the Baltic states, Poland, Romania and Bulgaria as countries moving aggressively to strengthen deterrence against Russia.

His assessment comes as NATO allies work toward a new defense spending benchmark agreed at the 2025 summit in The Hague, which calls on members to invest 5% of GDP in defense and security-related spending by 2035, including 3.5% for core defense requirements and 1.5% for defense-related infrastructure and security investments.

John Deni, a research professor at the U.S. Army War College, said the trend shouldn’t be surprising. 

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«Given the threat of Russia, allies in the East are acquiring capabilities more quickly, and they’re spending even more than allies in the West,» Deni told Fox News Digital. «This shouldn’t surprise us because they’re the ones closest to the threat.»

Deni noted that many eastern allies are rapidly purchasing equipment already available on the market rather than waiting years for domestic defense programs to mature.

UK, GERMAN DEFENSE OFFICIALS DEFEND MILITARY BUILDUP UNDER RUSSIAN THREATS

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US President Donald Trump and NATO Secretary General Mark Rutte standing together at a summit.

President Donald Trump and NATO Secretary-General Mark Rutte attend the start of a NATO leaders summit in The Hague, Netherlands, June 25, 2025. (Ludovic Marin/Pool via Reuters)

The transformation is visible across NATO’s eastern and northern flanks. Poland has become one of the alliance’s largest military spenders, Romania is increasing defense investments, and Finland and Sweden have added advanced military capabilities to NATO following their accession.

Secretary of State Marco Rubio praised Finland and Sweden Thursday at the Senate Foreign Relations Committee hearing, using them as examples of allies strengthening the alliance.

«Sweden and Finland have actually contributed because they brought their own defense industry, their own advanced technology,» Rubio said. «They have been great partners.» 

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Romanian Foreign Minister Oana-Silvia Ţoiu echoed that message in an interview with Fox News Digital following an emergency U.N. Security Council session convened after a Russian drone strike injured civilians in the Romanian city of Galați.

«We do agree with President Trump on the need to increase budgets,» Ţoiu said.

Ţoiu said Romania raised defense spending to 2% of GDP during Trump’s previous term and plans to allocate «an average of 3.4 percent» next year through military procurement and strategic infrastructure investments.

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POLAND SEEKS ANSWERS AFTER PENTAGON SCRAPS PLANNED US ARMORED BRIGADE ROTATION

British soldiers in military gear move through a secured area following an attack.

«Europe is clearly stepping up, but they’re stepping up by geographic variation,» Retired Rear Adm. Mark Montgomery told Fox News Digital. (Omar Sobhani/Reuters)

«We have launched initiatives that are directed at the eastern flank because it is increasingly more clear that that needs to be protected,» she said.

She argued that Romania’s role extends beyond national defense.

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«We need better deterrence, better defense capabilities there in order to ensure our responsibility in protecting not just the Romanian border, which is the longest border to the war, but also it is in the same time a European border and the border of the Allied territory,» Ţoiu said.

For frontline states, the urgency is driven by geography as much as politics. Romania shares a border with Ukraine and repeatedly has dealt with Russian drones entering its airspace. Poland has become one of NATO’s top military spenders, while the Baltic states are racing toward defense expenditures approaching 5% of GDP.

Montgomery said the eastern flank’s urgency contrasts sharply with the pace in much of Western Europe.

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Among the continent’s five largest economies, and despite a slight decrease in military spending in 2025, the U.K. remains the largest investor relative to GDP, with 2.4%, trailed by Germany (2.3%), Spain (2.1%), France (2%) and Italy (1.9%), according to the Stockholm International Peace Research Institute (SIPRI).

WHY NATO’S DEFENSE SPENDING IMBALANCE LASTED FOR DECADES

Oana-Silvia Toiu speaking during a Security Council meeting at the UN headquarters in New York

Oana-Silvia Toiu, Romania’s minister for foreign affairs, speaks during an emergency Security Council meeting at the United Nations headquarters in New York on June 1, 2026, after a Russian military drone entered Romanian airspace and exploded, injuring civilians. (Lev Radin/Sipa USA)

«The Germans are the one country, I think, with a large economy that is starting to make the right kind of investments.»

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Germany, he argued, could become the backbone of Europe’s future defense industrial base.

«Germany developing a large, impressive defense industrial base is good for NATO, it’s good for Western security, and it’s even good for our primes,» Montgomery said.

German Chancellor Friedrich Merz has embraced higher defense spending and backed NATO’s new spending goals, positioning Berlin as a potential hub for Europe’s future defense industrial base as allies seek to reduce long-term dependence on the United States.

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But despite rising defense budgets, experts warn Europe remains heavily dependent on American military capabilities.

Barak Seener, a senior fellow at the Henry Jackson Society, said Europe still relies on the United States for many of the systems required to fight a modern war.

NATO CHIEF WARNS EUROPE CAN’T DEFEND ITSELF WITHOUT US AS TENSIONS RISE OVER GREENLAND

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Despite rising defense budgets, experts warn Europe remains heavily dependent on American military capabilities.  (Anders Wiklund/TT News Agency via AP, File)

«Europe is heavily dependent on NATO for its strategic airlift and sea lift, its air-to-air refueling, its cyber capabilities, its space assets, its intelligence, surveillance and reconnaissance,» Seener said.

Without those capabilities, he warned, European forces would struggle to maintain situational awareness during a major conflict.

Montgomery said Europe faces three major challenges: expanding military capacity, rebuilding its defense industrial base and developing high-end support capabilities that have long been provided by the United States.

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PENTAGON CUTS BRIGADE COMBAT TEAMS IN EUROPE AS TRUMP PRESSURES NATO ON SPENDING

US Army soldiers in NATO exercise

Retired Rear Adm. Mark Montgomery pointed to the Baltic states, Poland, Romania and Bulgaria as countries moving aggressively to strengthen deterrence against Russia.  (Kuba Stezycki/Reuters)

«When you are freeloading for 30 years, you create enormous deficits in terms of people, equipment, technology and know-how,» he said.

«The primary forces to defend Europe should be European,» he said. «The United States should provide additional forces that allow maneuver and offensive operations.»

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Montgomery also criticized reported Pentagon deliberations over delaying long-range strike deployments to Germany and reconsidering future Tomahawk missile sales, arguing the systems are critical for deterring Russia.

«The goal here is not to fight Russia in the Baltics or in Poland. The idea here is we want to deter Russia from even trying to attack.»

Looking ahead, Montgomery remains optimistic about NATO’s future.

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Montgomery predicted Europe will continue increasing defense spending and expanding its defense industrial base, while the alliance benefits from steadier transatlantic relations.

«I think you’ll have a U.S. president that probably doesn’t provoke the Europeans as much. You’ll have Europe that’s investing more,» he said.

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U.S. Army M1 Abrams tanks participating in Armed Forces Day parade in Warsaw, Poland

U.S. Army M1 Abrams tanks take part in the Armed Forces Day parade in Warsaw, Poland, Aug. 15, 2025.  (Artur Widak/NurPhoto)

He also predicted NATO Secretary-General Mark Rutte would be remembered for helping hold the alliance together through a period of significant change.

«I think five years from now, NATO will be stronger,» he said. «And I hope we have Ukraine in there.»

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