US financial shield bolsters Hungary amid EU funding freeze, minister says
Hungary’s government says a new understanding with Washington amounts to a “financial shield,” demonstrating it can secure funding beyond European Union sources that remain frozen over rule-of-law concerns, according to Janos Lazar, Construction and Transport Minister and a senior aide to Prime Minister Viktor Orban.
Following Orban’s meeting at the White House on Friday with U.S. President Donald Trump, Budapest obtained a waiver from U.S. sanctions related to the use of Russian energy, a move officials say has buoyed the forint. Orban also said Washington agreed to help protect Hungary’s economy and public finances from external pressure.
Lazar argued the arrangement means the EU can no longer “blackmail” Hungary, with billions of euros in EU funds still on hold pending compliance with rule-of-law commitments. “The United States will not let the Hungarian opposition, or Brussels, blackmail Hungary financially,” he said in a video interview. A spokesperson for the European Commission declined to comment.
The remarks come as Hungary’s economy struggles to regain momentum after three years of stagnation and elevated inflation in the wake of Russia’s 2022 invasion of Ukraine. Orban, heading toward a closely contested 2026 election, has accused EU institutions of trying to unseat his government. Lazar said the message from Washington was clear: if EU money remains blocked, the United States would be prepared to step in with support. He also emphasized Budapest’s ties with both China and the United States, warning that Hungary would respond if it felt pressured by Brussels.
As part of the broader understanding with Washington, Hungary is set to back significant U.S.-linked projects and purchases, according to U.S. government figures. These include:
- Support for the construction of up to 10 small modular nuclear reactors, with an estimated value of up to $20 billion.
- Purchases of approximately $600 million in U.S. liquefied natural gas.
- Acquisition of roughly $700 million in U.S. military equipment.
Hungarian officials present the initiative as proof that Budapest has alternatives if EU funds remain out of reach. Critics in Brussels, however, maintain that the release of EU money depends on verifiable progress on judicial independence, anti-corruption safeguards, and other rule-of-law benchmarks. For now, the Commission has offered no fresh public assessment of Hungary’s standing.
The government in Budapest has portrayed the U.S. “financial shield” as both an economic backstop and a geopolitical signal. By pairing a sanctions waiver on Russian energy with commitments in nuclear power, LNG, and defense procurement, Orban’s team argues it has broadened Hungary’s room for maneuver at a moment of financial and political strain.
