On January 7th, 2026, US President Donald Trump called for an increase in US defence spending to $1.5 trillion in 2027, due to the US experiencing very troubled and dangerous times.
If the $1.5 trillion budget is approved by Congress, it will be 50 per cent higher than the current year’s $901 billion budget, which was approved by Congress in December.
Trump said on social media on Wednesday that this budget will allow the US to build the “Dream Military” that the country is entitled to and, more importantly, will keep the US secure and safe, regardless of foe.
He also stated in separate social media posts that he would crack down on payouts to shareholders and bosses of major US defence contractors unless the firms build new manufacturing plants and speed up deliveries of armaments.
He specifically pointed out US defence giant Raytheon and termed them the least responsive to America’s defence needs, and he called them the slowest to increase production.
He further added that Raytheon needs to step up and start investing in more upfront Investment like Plants and Equipment. If they are unable to, they will no longer do business with the US’s department of War.
It is important to note that the last time the US’s Defence Department saw an increase of 50% was in the 1951 Korean War. The huge surges in the military’s budget under former President Ronald Reagan in 1981 and 1982 were only 25% and 20%.
Interestingly Economists have already warned that the gap between US spending and its income has reached unsustainable levels.
However, according to Trump, the money brought by tariffs will help Washington easily hit the proposed $1.5 trillion defence budget.
Trump, since his first term in the White House, has been pushing for higher defence spending by the US and its allies.
Read more: Trump reviews military options to gain control of Greenland
