Trump proposes $1.5 trillion defense budget for 'dream military'
What's the story
United States President Donald Trump has proposed a whopping $1.5 trillion defense budget, a steep increase from the congressional approval of $1 trillion for 2026. He said the hike is essential to build what he calls a "Dream Military," capable of deterring any adversary and ensuring national security in these "troubled and dangerous" times. The proposal was announced on Truth Social after talks with lawmakers and senior officials.
Contractor criticism
Trump criticizes defense contractors, threatens contract cancelations
Trump also slammed defense contractors for stock buybacks instead of infrastructure spending. He specifically called out Raytheon for not meeting the Department of Defense's needs and threatened to cancel its contracts if it didn't comply with his demands. His comments sent Raytheon's share price plummeting by over 10%, while Lockheed Martin and Northrop Grumman shares dropped by 8-10%.
Tariff link
Trump links defense budget increase to tariff revenues
Trump has linked the proposed increase in defense spending to revenues from tariffs, which he claims have created room for higher military expenditures. He said without these tariffs, he would stick to the $1 trillion figure. The Republican Party has welcomed Trump's proposal as a "good news story," arguing for Pentagon funding at 5% of total GDP. However, experts at Taxpayers for Common Sense claim that this spending plan doesn't add up given America's over $38 trillion debt.
Budget feasibility
Experts question feasibility of Trump's defense budget increase
Steve Ellis, President of Taxpayers for Common Sense, said that increasing the military budget would not help address America's debt crisis. "We're over $38 trillion in debt. We have real needs, at home and abroad, none of which will be easier to meet by hitting the gas pedal on the debt crisis," he said. He said the tariff revenues will not offset the deficit and stressed that "the math doesn't add up."