President Donald Trump said he wants the US military budget raised to $1.5 trillion in 2027, which would require congressional approval. He framed the push as a security measure for what he described as “very troubled and dangerous times,” and said tariff revenues would help fund the increase. The proposal also came with a warning to defense companies to boost output, with Trump signaling tougher scrutiny of payouts such as dividends and stock buybacks if firms don’t invest more in production capacity.
Highlight...
President Donald Trump said he wants the US military budget raised to $1.5 trillion in 2027, which would require congressional approval. He framed the push as a security measure for what he described as “very troubled and dangerous times,” and said tariff revenues would help fund the increase. The proposal also came with a warning to defense companies to boost output, with Trump signaling tougher scrutiny of payouts such as dividends and stock buybacks if firms don’t invest more in production capacity.
Highlights:
- Budget baseline: Congress approved about $901bn for US defense spending in 2026, providing a benchmark for how much lawmakers would need to add to reach the president’s 2027 target.
- Contractor restrictions: Trump said he is targeting shareholder payouts and executive compensation at firms such as Raytheon, and described prohibitions on dividends, buybacks, and “exorbitant” executive pay until more is invested in plants and equipment.
- Market reaction: Shares of defense companies rose in after-hours trading following the announcement, reflecting expectations of higher future procurement and production demand.
- Tariff rationale: Trump linked the proposed funding to what he called “tremendous” tariff income, arguing it could support higher military spending and other fiscal goals.
- Recent operations: The broader context described alongside the proposal included US forces seizing a Russian oil tanker in the Atlantic over alleged sanctions violations, and a separate operation aimed at capturing Venezuela’s Nicolás Maduro.
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, - President Donald Trump
Perspectives:
- President Donald Trump: He argues a larger 2027 military budget would improve US security and says tariff revenues could finance it. (Business Insider)
- Trump administration (message to contractors): The White House message to defense firms is to increase production, with threatened crackdowns on payouts if capacity investments don’t rise. (BBC News)
- Financial Times reporting: FT reports Trump called for a roughly 50% increase in defense spending by 2027, describing a $1.5tn military budget objective. (Financial Times)
Sources:
- Trump calls for 50% increase in US defence spending by 2027 - ft.com
- The president wants to raise the war budget to USD 1.5 trillion by 2027 - reddit.com
- Trump said he wants to raise the US military budget by 50% in 2027 - businessinsider.com
- Trump calls for US military spending to rise more than 50% to $1.5tn - bbc.com