The Pentagon is considering cutting only about 5,000 of the roughly 80,000 troops stationed in Europe, significantly less than the 25,000 NATO allies initially feared.
The change reflects the increase in European defense spending and Washington's dependence on European bases for the ongoing war against Iran.
Most of the cuts will affect Germany, while NATO's eastern flank may be strengthened.
Pete Hegseth is expected to make final recommendations to President Trump on December 1.
Source: Bloomberg