Trump proposes USD1.5 trillion ‘Dream Military’ budget

WEB DESK: In a significant policy announcement, President Donald Trump has called for a dramatic 50% increase in the United States’ defense budget for fiscal year 2027, targeting a total of $1.5 trillion. The proposal, framed as a necessity for national security, was announced via the President’s social media platform on Wednesday.

Citing “very troubled and dangerous times,” President Trump stated the massive funding boost would enable the U.S. to build a “dream military” to ensure safety and security. He linked the proposed increase to revenue generated from his administration’s broad tariff policies, suggesting they provide the fiscal capacity for the expansion.

If enacted, the budget would substantially widen the gap between U.S. military spending and that of other global powers. The United States already leads the world in defense expenditures, and this hike would further outpace the outlays of strategic competitors like China and Russia, potentially accelerating global arms competition.

Criticism of Defense Industry Amid Spending Push

Paradoxically, the announcement was paired with sharp criticism of the very defense contractors that would benefit from increased Pentagon funding. President Trump targeted major firms for what he called “exorbitant and unjustifiable” executive pay, excessive shareholder dividends, and stock buybacks that he claims come at the expense of investing in manufacturing capacity.

He specifically named Raytheon, alleging the Department of Defense finds the company “least responsive” to its needs. The President threatened to curtail government contracts for non-compliance and proposed capping defense executive salaries at $5 million while prohibiting stock buybacks and dividends until investments in infrastructure are improved.

The unexpected critique triggered an immediate sell-off in defense stocks, with major companies like Lockheed Martin, General Dynamics, and Northrop Grumman falling between 4-5%.

Context of Global Military Commitments

This push for a historic U.S. budget increase follows sustained pressure from the Trump administration on NATO allies to bolster their own defenses. Last year, alliance members committed to raising their military spending to 5% of GDP by 2035. The proposed U.S. budget underscores a continued focus on military preparedness amid ongoing international engagements, including recent operations targeting Iranian nuclear sites, Houthi rebels in Yemen, and activities in Venezuela.

Web Desk