Overview
- The president announced the proposal on Truth Social after talks with senators, House members and senior officials.
- He also said he would bar defense contractors from dividends and stock buybacks and cap executive pay at $5 million until production improves.
- Defense shares fell on the compensation and payout comments, with Northrop Grumman dropping more than 5% before recovering on the larger spending plan.
- The figure dwarfs the current $901 billion defense budget for 2026 and will still require congressional approval through the appropriations process.
- The push comes days after a U.S. operation targeting Nicolás Maduro and as U.S. forces reposition in the Caribbean, according to Associated Press reporting.