U.S. Defense Secretary Pete Hegseth said that NATO allies spending two percent [1] of their GDP on defense are still "freeloading."

The comments signal a potential shift in U.S. security expectations, suggesting that meeting established treaty benchmarks may no longer be sufficient to maintain American support.

Speaking at the Shangri-La Dialogue in Singapore, Hegseth said allies should increase their financial contributions to keep security partnerships credible. He said that long-standing friendships alone cannot sustain these partnerships, stressing that allies must fund more military capability to share the burden of global security.

"2% is freeloading," Hegseth said.

The Defense Secretary said that the U.S. expects a more aggressive approach to defense procurement and maintenance from its partners. He said that the current level of investment is inadequate for the modern security environment.

"Allies that do not hike defence spending sufficiently will face a reckoning," Hegseth said.

This rhetoric follows years of tension regarding the distribution of costs within the North Atlantic Treaty Organization. While the two percent [1] target has long been the benchmark for member states, the U.S. has frequently pressured European nations to meet or exceed that figure to reduce the financial strain on the American military budget.

"2% is freeloading."

Hegseth's comments suggest the U.S. may move beyond the 2% GDP benchmark as a measure of 'fair share,' potentially linking future security guarantees to higher, specific spending increases rather than a static percentage.