President Donald Trump has proposed a $1.5 trillion budget for fiscal year 2027 to build what he described as the “Dream Military.”
In a Truth Social post Wednesday, the president said the increased defense spending will be offset by the “tremendous income” generated by his tariffs.
“After long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives, I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” he wrote on the social media site. “This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe.”
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What Is the US Defense Budget for Fiscal Year 2026?
The president’s proposed budget would be a significant funding boost for the Pentagon, which will receive $900.6 billion under the fiscal 2026 National Defense Authorization Act, or NDAA, signed into law on Dec. 19. The defense policy bill allocates funding for shipbuilding, munitions and vehicle procurements, and initiatives such as the Golden Dome for America.
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Why Did Trump Call Out Defense Contractors?
In another social media post, Trump called out the defense industrial base for the slow delivery of critical equipment.
The president said defense contractors are “issuing massive Dividends to their Shareholders and massive Stock Buybacks” instead of investing in modern production plants that will manufacture and maintain future military equipment.
“Defense Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly,” he stated.
He warned that he will block dividends and stock buybacks until problems are resolved.
The White House issued the Prioritizing the Warfighter in Defense Contracting executive order on Wednesday, directing the secretary of war to identify underperforming contractors.
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