Military Damage Claims in Germany--A Growing Burden

Because large numbers of U.S. military personnel are located in other countries, the conduct of military activities in these countries inevitably causes damages and injuries to foreign property and citizens. Most damage claims are paid to the Federal Republic of Germany (FRG). Under the North Atlantic Treaty Organization Status of Forces Agreement (NATO SOFA), the U.S. Army Claims Service, Europe (USACSEUR) provides reimbursements to FRG for the U.S. share of claims settlements. The normal rate of U.S. reimbursement is 75 percent of amounts actually paid to claimants by FRG; the remaining 25 percent is absorbed by FRG. These reimbursements have been steadily increasing in recent years. GAO reviewed the amount and types of host nation support and cost sharing provided to U.S. forces stationed overseas. The review focused on FRG because most of the claims resulted from damages caused by military training maneuvers there. The reasons for the large increases in the amount of damage claims paid by U.S. forces overseas, the administration of the claims payment process by the Department of Defense (DOD), and the possibilities for reducing U.S. damage claim costs through more equitable cost sharing or other methods were examined.