US President Trump has proposed a massive increase in the country’s military budget for 2027. He said the defense budget should reach $1.5 trillion, far higher than the $901 billion approved by Congress for 2026. The proposal immediately drew attention from markets, lawmakers, and budget experts.
In a post on Truth Social, Trump said the decision came after long discussions with senators, members of Congress, and senior officials. He argued that the United States faces dangerous global conditions. According to him, higher defense spending is necessary to protect national security.
Any increase of this size would require approval from Congress. While Republicans hold slim majorities in both the Senate and House, experts say passing such a large increase could be difficult. However, so far, there has been limited public resistance from Republican lawmakers.
The announcement boosted defense company stocks after markets closed. Shares of Lockheed Martin rose more than 6 percent. General Dynamics gained over 4 percent. RTX also moved higher. Investors believe higher military spending could increase future contracts and profits.
The proposal followed another message from Trump criticizing defense companies. He accused them of producing weapons too slowly. He also threatened to block dividends and share buybacks until production speeds improved.
Trump claimed the extra spending could be funded through tariff revenues. He said tariffs imposed on many countries and industries would cover the costs. He also claimed the plan would still allow debt reduction and payments to middle-income Americans.
Budget experts strongly questioned these claims. The Committee for a Responsible Federal Budget estimated the plan would cost $5 trillion through 2035. It warned that the proposal could add $5.8 trillion to national debt, including interest. The group said current tariffs would cover only half the cost.
The Bipartisan Policy Center also challenged the revenue claims. It estimated tariffs raised $288 billion in 2025, far below Trump’s projections. Analysts also warned that future court rulings could cancel some tariffs.
Defense analysts raised other concerns. They questioned whether the defense industry could handle such a sudden funding surge. One expert noted that similar increases only happened during major wars. Even during the Reagan era, spending growth was much smaller.
The proposal comes amid increased US military actions. Recent developments include troop deployments inside the US and discussions about Greenland. These moves have added to the debate around defense policy.
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For now, the plan remains a proposal. Congress will decide whether Trump’s ambitious defense budget becomes reality.
