President Donald Trump on Wednesday declared he would ask Congress for a $1.5 trillion defense budget in 2027, a massive $500 billion increase from this year’s Pentagon budget.
The huge boost likely reflects how expensive some of Trump’s military ambitions are, from the Golden Dome air defense effort to his call for a new battleship design. Neither of those programs could be fully funded under current spending levels.
The president provided few details in his post on Truth Social, other than to say the money would pay for his “Dream Military.” Trump did suggest that tariff revenues could cover the increase, but even if he managed to circumvent Congress’ constitutionally mandated power over spending, existing tariff collections would still be several hundred billion short of what the president plans to ask for.
While finding half-a-trillion dollars in new spending would prove difficult, Trump and some congressional Republicans appeared confident they could do so. The budget reached $1 trillion this year thanks to $150 billion in new money Congress voted to pour into Pentagon coffers via a reconciliation bill, although much of that will be spread out over the next five years on various long-term projects.
Lawmakers have yet to complete a defense spending bill for this fiscal year, although a final agreement is expected to increase Trump’s budget request by several billion dollars.
Some Republicans have long argued for significant annual increases in Pentagon funding, with a topline total of around 5 percent of GDP, up from the current 3.5 percent.
Rep. Don Bacon (R-Neb.) called Trump’s aspirations “a good news story” after his administration proposed budgets defense hawks on Capitol Hill saw as lacking.
“We think we need a permanent 4 percent [of GDP] or better,” Bacon said. “That’s what it’s gonna take to build our Navy, our Air Force, our ICBMs, our bombers, and take care of our troops.”
The 2026 budget only reached $1 trillion due to the $150 billion added on by Congress. That one-time infusion gave a boost to Golden Dome as well as new initiatives to build more precision-guided munitions and air defense weapons. But the funding will need to be included in year-on-year spending legislation, something Trump’s new proposal appears to take into account.
Trump’s surprise budget announcement came just hours after he sent defense stocks plunging by railing against the performance of major defense companies.
In another social media post, Trump said he would not allow defense companies to buy back their own stocks, offer executives large salaries and issue dividends to shareholders. He also slammed the companies for moving too slowly, and charging too much, for weapons.
Via Politico
