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Trump Seeks $1.5 Trillion FY2027 Defense Budget, Citing Tariffs for Funding

Analysts question the tariff funding claims as Congress begins to weigh the proposal.

Overview

  • The request is a presidential proposal, not an appropriation, and will require congressional approval following the recently enacted 2026 defense package.
  • The figure represents roughly a 50% jump from the 2026 National Defense Authorization Act’s $901 billion, with separate supplements pushing 2026 totals above $1 trillion.
  • The White House says tariff revenues would cover the increase, while CRFB estimates about $5 trillion in added defense spending through 2035 and roughly $5.8 trillion more debt after interest.
  • CBO estimates suggest current tariffs could raise about $2.5 trillion to $3 trillion, indicating a gap with the administration’s funding rationale.
  • Regional experts warn the proposal could accelerate an arms buildup in the Indo-Pacific, prompting a Chinese response and pressuring partners such as India, Japan, South Korea, and Australia.