Key Points
- Trump urges a more than 50% increase in U.S. defence spending to about $1.5 trillion for 2027.
- He proposes funding the rise partly through tariff revenues and tightening payout practices at defence firms.
- Economists warn the plan would widen deficits and require significant congressional negotiation.
Former U.S. President Donald Trump has called for a dramatic increase in the United States military budget, urging lawmakers to boost defence spending by more than 50 percent to approximately $1.5 trillion in 2027. This proposed rise would take the budget well above the roughly $901 billion approved for the 2026 fiscal year and marks one of the most ambitious defence funding pushes in recent memory.
Trump described the expanded defence budget as essential to building what he called a “Dream Military” capable of confronting growing global threats and securing the nation’s position amid rising geopolitical tensions. He asserted that increased military power would protect U.S. interests against potential adversaries and underwrite rapid modernization of weaponry, personnel and strategic capabilities.
In social media posts, Trump argued that tariff revenues could help cover the higher spending, claiming that trade levies imposed under his administration would generate the necessary funds to support the expanded defence outlay without unduly upsetting the federal budget. His proposal reflects a broader prioritization of national security and economic leverage, he wrote, though critics question whether tariffs will yield sufficient revenue for such a steep increase.
Trump also took aim at major U.S. defence contractors, warning that companies failing to boost production of military equipment should face restrictions on dividends and stock buybacks. He has urged a crackdown on executive pay practices at firms including Raytheon and Lockheed Martin, linking future contracts to increased investment in domestic manufacturing capacity.
Economists and budget analysts have responded with caution, noting such a significant hike would require congressional approval and could widen the federal deficit. Moody’s Ratings warned that financing such a large defence budget could increase long-term debt burdens and reduce fiscal flexibility, even if defence spending stimulates some economic activity.
The proposal comes at a time of heightened global instability, including recent U.S. military actions and broader geopolitical competition. Markets reacted quickly, with defence stocks in Europe and the U.S. showing gains as investors anticipated increased demand for industry services and equipment tied to higher government spending.
Trump’s defence budget push aligns with his long-standing calls for higher U.S. military spending and greater defence industrial output. His critics, however, argue that pushing defence costs so sharply upward could have trade-offs for domestic investment in areas such as education, healthcare and infrastructure.
The plan also reflects shifting U.S. priorities in the face of escalating tensions with major powers. By advocating a “Dream Military,” Trump aims to strengthen the United States’ deterrence posture and enhance strategic readiness across multiple domains, including cyber and space.
Lawmakers from both parties have expressed mixed reactions. Some Republicans echo the need for higher defence funding, while fiscal conservatives and Democrats alike warn that the proposed figure would require serious negotiation and could be scaled back significantly.
Approval of such an increase would entail complex negotiations in Congress, where budget priorities and concerns about national debt loom large. If implemented, the change could reshape U.S. defence policy and funding strategy for years to come, influencing how the nation approaches its global military commitments.
