Trump Seeks $1.5 Trillion Defense Budget in 2027, a 50% Increase

Overview

• Trump announced on Truth Social that he wants the 2027 U.S. defense budget set at $1.5 trillion, framing it as necessary for security and military buildup.
• The proposal is not enacted and would require a formal budget submission and congressional approval, with the current 2026 defense budget at $901 billion.
• The administration says tariff receipts would finance the expansion, though the Bipartisan Policy Center estimates 2025 tariff intake at $288 billion, well below Trump's recent claims of about $600 billion.
• The Committee for a Responsible Federal Budget estimates the plan could cost $5 trillion through 2035, add $5.8 trillion to federal debt with interest, and be only partially covered by existing tariffs that could face legal challenges.
• Defense stocks rose after the post as analysts questioned how funds would be allocated and whether the sector could absorb such a rapid increase, noting that the last U.S. defense outlay jump above 50% occurred in 1951.