Overview
- Trump announced the target on Truth Social, framing the increase as necessary for security and claiming tariff revenues would cover the cost.
- The proposal far exceeds the roughly $901 billion defense authorization for fiscal 2026 passed in December.
- Defense shares climbed on the news, with Lockheed Martin up about 5%, Northrop Grumman up 3.6%, General Dynamics up roughly 3%, and the iShares U.S. Aerospace & Defense ETF up about 0.6%.
- Commentary described the plan as a potential war budget, with concern heightened by recent reports of a U.S. incursion in Venezuela.
- SIPRI data shows the U.S. was already the world’s top military spender at $997 billion in 2024, underscoring the scale of the proposed jump.