The Pentagon is considering cutting only about 5,000 of its roughly 80,000 troops in Europe, far less than the 25,000 that NATO allies initially feared.
The change reflects the increase in European defense spending and Washington's reliance on European bases in its ongoing war against Iran.
Most of the reductions will focus on Germany, while NATO's eastern flank could be strengthened.
Pete Hegseth is expected to submit final recommendations to Trump on December 1.
Source: Bloomberg