Overview
- The proposal would lift defense spending from the $901 billion enacted for 2026 and still requires congressional authorization to take effect.
- Trump says tariff revenue makes the larger outlay feasible and has also floated paying down debt and sending dividends to moderate‑income Americans.
- Nonpartisan analysts, including the Committee for a Responsible Federal Budget, estimate the plan would add trillions to the national debt and that expected tariff receipts would cover only a portion of the increase.
- In tandem, Trump moved to pressure defense contractors by threatening to block dividends and buybacks and to cap executive pay at $5 million, singling out Raytheon as insufficiently responsive.
- Defense stocks fell on the contractor ultimatum before rebounding after the bigger-spending post, with major firms gaining in after‑hours trading on expectations of higher future orders.