A former Pentagon press secretary, Morgan Murphy, has pushed back on reports suggesting Washington could use the Falkland Islands as leverage to pressure Britain into raising its NATO defence spending, insisting that longstanding US neutrality on the islands' sovereignty remains unchanged. The row flared after reports that UK Chancellor John Healey is expected to abandon the government's target of reaching 3% of GDP on defence by 2030 when he delivers his budget in October, prompting Murphy to argue the US is entitled to apply "diplomatic leverage" over London's military spending rather than its territorial stance.

Murphy said UK defence spending is currently projected to reach only 2.7% of GDP by 2030, with a new target date of 2035 expected, despite Britain signing the 2025 Hague Summit Declaration committing NATO members to 5% of GDP on defence and security by 2035, including 3.5% on core defence. He rejected earlier reports of an internal Pentagon email hinting the US might reconsider its Falklands position, noting it was never confirmed, and reaffirmed that Washington continues to recognise British administration of the islands, where 99.8% of residents voted to remain British in a 2013 referendum. He characterised any US pressure on Britain as "leverage, not abandonment", aimed at ensuring the UK meets its stated defence commitments.