Overview
- At the Reagan National Defense Forum, OMB Director Russell Vought said no decision has been made on a second reconciliation bill, though he kept the option open.
- Vought called reconciliation a paradigm shift that moved priorities like Golden Dome, shipbuilding and nuclear modernization into mandatory accounts largely for 2026 to avoid appropriations swings.
- Defense Secretary Pete Hegseth said he expects defense spending to increase and indicated it could rise above roughly 3% of GDP, which in practical terms could push the annual budget above $1 trillion.
- The White House’s recent National Security Strategy emphasized strengthening the defense industrial base, which officials present as a key reason for more predictable funding.
- Critics including Democrats and Sen. Mitch McConnell argue one-time boosts are no substitute for steady annual appropriations, as members like Rep. Don Bacon push for at least 4% of GDP and Rep. Adam Smith questions sustainability.