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Trump Seeks $1.5 Trillion Defense Budget for 2027, Citing Tariff Revenue

Independent estimates point to large long-term costs with higher federal debt.

Overview

  • Trump unveiled the plan on Truth Social, proposing roughly a 50% jump over the FY2026 defense level of about $901 billion.
  • The proposal leans on tariff receipts for funding, though a CBO estimate puts potential tariff revenue at roughly $2.5–$3 trillion.
  • The Committee for a Responsible Federal Budget projects about $5 trillion in additional defense outlays from 2027 to 2035 and roughly $5.8 trillion added to the national debt after interest.
  • The plan is not in force and would require congressional approval through the regular budget process.
  • Security analysts warn the surge could hasten an arms race in the Indo-Pacific, likely prompting a Chinese buildup and added pressure on regional allies.