Overview
- The proposal targets a roughly 50% jump from the 2026 defense budget of about $901 billion.
- Trump said tariff receipts would allow the larger outlays, calling for a buildup to create a so‑called “dream” military.
- Congress must decide the funding level for 2027 despite Trump’s claim of talks with lawmakers and officials.
- Trump singled out Raytheon/RTX, threatening to block share repurchases and cut Pentagon business unless it invests more in domestic production.
- Defense stocks fell after his remarks, with Northrop Grumman down about 5.5%, Lockheed Martin off 4.8%, and RTX lower by 2.5%, as the announcement followed a U.S. operation that captured Nicolás Maduro.