US President Donald Trump has proposed raising the country’s military budget to $1.5tn for the year 2027, amid ongoing global tensions.
Trump stated on Truth Social that this increase is “for the good of our country” during what he described as “very troubled and dangerous times.”
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“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 said.
According to President Trump, revenue generated from tariffs imposed on other countries would help support the larger defence budget.
He claimed that these tariffs have produced significant income for the US, making it feasible to consider a higher military expenditure than in previous years.
However, the suggested increase in defence spending would require authorisation from Congress, which could prove challenging, according to Reuters report.
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By GlobalDataTrump argued that the increased allocation would allow the country to strengthen its military capabilities and maintain national security regardless of potential threats.
Currently, the US military budget for 2026 is set at $901bn.
Trump’s proposal comes shortly after US forces detained Venezuelan President Nicolas Maduro and took control of a Russian-flagged oil tanker linked to Venezuela in the North Atlantic. This recent action has drawn criticism from Moscow.
Non-profit Committee for a Responsible Federal Budget gave an initial estimate that the President’s announcement would raise defence spending by $5tn through 2035, and, when accounting for interest, would add $5.8tn to the national debt.
In separate development, President Trump signed an Executive Order requiring the Secretary of War to identify defence contractors that do not meet production or delivery standards or prioritise stock buybacks and corporate distributions over contract obligations.
The order allows identified contractors to provide a remediation plan or engage with the Secretary to address these issues.
If unresolved, the Secretary may take further action, including amending contracts or using enforcement mechanisms.
The order also instructs that future contracts prohibit stock buybacks and corporate distributions during periods of underperformance or non-compliance.
“While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment. This situation will no longer be allowed or tolerated!,” Trump said on Truth Social.
