Washington and Budapest have sealed a far-reaching strategic agreement that redefines their bilateral relationship and strengthens Hungary’s position as one of the United States’ key partners in Central Europe.
The signing, held on Friday in the U.S. capital during a meeting between President Donald J. Trump and Prime Minister Viktor Orbán, marks a decisive step forward in consolidating political, economic, and security ties between the two nations.
The new cooperation framework revolves around three pillars: energy independence, joint defense, and scientific-technological development—all considered essential.
Energy strategy
One of the main outcomes of the deal is the signing of a Memorandum of Understanding on Nuclear Energy, which lays the groundwork for future negotiations on the development and deployment of Small Modular Reactors (SMRs).
The United States and Hungary agreed to cooperate in turning Budapest into a regional hub for Central Europe’s emerging nuclear market, with an estimated economic potential of up to $20 billion.
During the meeting, Prime Minister Orbán also announced a contract with U.S.-based Westinghouse to supply nuclear fuel for the Paks I power plant, valued at $114 million. This agreement will allow Hungary to reduce its energy dependence on Russia while maintaining its national security model.
In parallel, Hungary committed to purchasing liquefied natural gas (LNG) from the United States worth approximately $600 million, as part of its “energy diversification” strategy. According to Hungarian government sources, this measure reinforces the country’s autonomy in the face of EU restrictions and European energy market pressures.
Security and defense
The agreement also launches negotiations to renew the General Security of Military Information Agreement (GSOMIA), ensuring the protection of classified data and intelligence cooperation.
The Hungarian government announced its intent to purchase $700 million in U.S. military equipment, further strengthening its defense capabilities within NATO.
On the diplomatic front, Washington confirmed the full restoration of Hungary’s participation in the Visa Waiver Program, facilitating travel for Hungarian citizens to the United States and boosting business and academic exchange.
In addition, American Airlines will resume direct flights between Philadelphia and Budapest starting in May 2026—a move expected to strengthen tourism and economic ties.
Science, education, and technology
Ahead of the 250th anniversary of American independence in 2026, both governments agreed to expand the Fulbright Program through the John von Neumann STEM Award, offering new exchange opportunities for researchers and students in science, technology, and engineering. Hungary has pledged to match U.S. funding for this flagship educational initiative.
The agreement also establishes a joint research consortium on the ethics of artificial intelligence, involving The Catholic University of America and Pázmány Péter Catholic University in Budapest, with $1 million in initial funding. The project aims to promote the responsible and ethical use of emerging technologies in an era increasingly shaped by automation and AI.
In addition, the MIT Center for International Studies (CIS) and the Hungarian Research Network (HUN-REN) signed a cooperation agreement to advance scientific and technological innovation through the MIT–Hungary HUNREN Seed Fund, which will finance joint projects and researcher exchanges.
Finally, Hungary has joined the Artemis Accords, a U.S.-led international initiative establishing principles for the peaceful and transparent exploration of space. With this step, Budapest reaffirms its commitment to innovation, transparency, and global scientific cooperation.
