United States President Donald Trump has announced that he has directed the federal government to raise the 2027 military budget target from $1 trillion to $1.5 trillion, describing the move as essential for national security amid what he called “very troubled and dangerous times.”
Trump made the announcement in a post on his social-media platform, stating: “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.” The declaration came only hours after he publicly criticized major defense contractors over stock buybacks, dividend payments, and executive compensation, signaling a more confrontational stance toward the defense industry even as he called for a dramatic increase in military spending.
The president’s remarks had an immediate impact on financial markets. Shares of leading U.S. defense contractors—including Boeing, Raytheon, General Dynamics, Lockheed Martin, and Northrop Grumman—fell earlier in the day after Trump suggested that his administration was considering new restrictions on financial practices within the defense sector. However, according to market reporting, those losses were largely reversed in after-hours trading following Trump’s announcement of a significantly higher military budget target, with several stocks regaining much of their earlier decline.
Media reports indicate that internal discussions within the White House about limiting dividends, stock buybacks, and executive salaries at large defense contractors have been underway for weeks. CNN reported that the proposal was initially expected to be announced before Christmas but was delayed after concerns were raised by Treasury Secretary Scott Bessent and other senior officials about potential market disruption and investor confidence. Trump’s social-media post appeared to ease some of those concerns by reaffirming his commitment to increased defense spending, even as questions remain about the regulatory measures he has hinted at.
Despite the scale of the proposed increase, Trump did not provide details on how the additional $500 billion would be allocated. There was no breakdown of funding priorities among the Army, Navy, Air Force, Marine Corps, or Space Force, nor any indication of how much would be directed toward personnel costs, weapons procurement, research and development, or overseas operations. The White House has not released any supporting budget documents, and the U.S. Department of Defense has not issued a formal statement responding to the president’s directive.
Congressional leaders from both parties also said they had not yet received a formal proposal. Under the U.S. budget process, any increase of this magnitude would require congressional approval, and lawmakers would need to determine how it fits within existing spending caps and deficit-reduction frameworks. Some lawmakers are expected to question how the administration plans to fund the increase, particularly as Trump has simultaneously pledged to avoid cuts to popular domestic programs.
In his post, Trump argued that the expanded military budget would be affordable due to revenue generated from tariffs, though he did not provide further explanation or projections. The administration has not clarified whether the proposed increase would rely solely on higher revenues, require offsets from other areas of the federal budget, or necessitate changes to statutory spending limits.
The announcement underscores Trump’s continued emphasis on military power as a central pillar of his foreign and security policy during his second term. Since returning to office, he has frequently highlighted rapid force deployments, aggressive sanctions enforcement, and the use of targeted strike authorities as tools to deter adversaries and project U.S. influence abroad. The proposed budget increase would align with a broader push toward late-decade modernization, including next-generation aircraft, naval platforms, missile defense systems, and space and cyber capabilities.
If enacted at the level Trump proposed, the $1.5 trillion target would represent the largest single-year military budget in U.S. history. While the lack of detail leaves many questions unanswered, the public directive marks the clearest signal yet that the administration intends to pursue a sharp expansion of defense spending as it shapes its long-term strategic and military priorities.
