US redirects $52 million in military aid to Panama, Peru, Ecuador and Colombia

The Trump administration is redirecting tens of millions of dollars in U.S. military assistance originally earmarked for Europe and the Middle East to support conservative governments in Central and South America.

On September 15, 2026 the State Department informed Congress that it will reprogram $52 million from the Foreign Military Financing fund that had been intended for Slovakia, North Macedonia, Tunisia and Iraq. The funds will instead be sent to Panama, Peru, Ecuador and Colombia, the notice said.

Who gains and who keeps their support

The reprogramming does not eliminate planned military assistance for Tunisia, Iraq, North Macedonia or Slovakia, the Department said, but shifts current allocations to partners in the Western Hemisphere. Secretary of State Marco Rubio visited Colombia, Ecuador and Peru last week and pledged additional support during that trip.

In its statement, the State Department framed the move as a response to regional security challenges. It said the money will be used to counter narcotics-linked terrorism and to help secure the Panama Canal.

"The funds will be used to 'fight narco‑terrorism in our immediate neighborhood and to continue securing the Panama Canal. These funds will prevent adversaries from establishing strategic footholds in our hemisphere,'" the State Department said.

The decision reflects a reorientation of priorities by the U.S. administration toward Latin America, citing concerns that rivals could establish influence close to home. Lawmakers in Congress were notified but may still scrutinize or challenge the reprogramming depending on how it affects longer-term commitments to the original recipients.

Photo: press material from the event