Trump's proposed budget, which requires approval from the Republican-controlled Congress, will increase military spending by $54 billion.
This would require steep cuts elsewhere, possibly in foreign aid and government organizations such as the Environmental Protection Agency (EPA).
Trump has left large social welfare programmes untouched.
Trump seeks to hike US defence spending
US is world's largest defence spender
The US has the world's highest military budget at $596 billion, nearly three times as much as China's ($215 billion) and 12 times as much as India's ($51 billion).
Trump plans to revitalize America's war machine
The increased budget would help the US establish "a more robust presence in key international waterways and choke points" such as the Strait of Hormuz and South China Sea.
Trump earlier said he would expand the army from 480,000 active-duty troops to 540,000. He also planned to induct 10,000 more Marines, 74 additional warships and submarines and 100 more Air Force tactical aircraft.
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John McCain calls Trump's proposed hikes insufficient
US military spending has decreased by over 15% from $711 billion in 2011 to $596 billion in 2015 due to budgetary battles in Congress.
Republican Senator John McCain said the White House's proposed $603 billion defence budget would be insufficient.
During his election campaign, Trump had vowed to step up military spending.
Trump's budget dilemma: Military vs social welfare
Trump's budgetary proposal would bring the US military closer to wartime spending.
Besides the military, Trump said he would spend "big" on infrastructure and protect social welfare spending.
During his election campaign, Trump had vowed to cut taxes but this would further increase the national debt which could reach $20 trillion during his presidency.
Keeping his campaign promises has placed Trump in a bind.
Trump says his budget would deliver on his promise
Trump said his budget "follows through on my promise to keep Americans safe." He called it a "public safety and national security" budget that will send a "message to the world in these dangerous times of American strength, security and resolve."
EPA, State Department budgets could be trimmed
Trump may look to cutting funding for the Environmental Protection Agency which currently receives around $8 billion annually.
The State Department, which receives $50 billion annually, might have its spending cut by up to 30%, according to an official. The department's $22 billion annual overseas aid budget would likely be trimmed.
Democrats have slammed Trump over these proposed budget cuts.
Trump's budget proposals require Congressional approval
Trump's 2018 budget proposal will be studied by various government agencies who will suggest changes.
Trump will then negotiate with the Republican-controlled Congress to get the federal budget approved.
Trump's plans to cut certain domestic programmes will likely face a backlash from Democratic and certain Republican lawmakers.