Trump floats record $1.5tn military budget for 2027 (up from $900 bn in 2026)

The president says tariffs will fund the historic military buildup.
Text: Óscar Ontañón Docal
Published 2026-01-08

Donald Trump has called for a $1.5 trillion United States military budget in 2027, a dramatic leap from the $901bn approved for 2026 that would mark the largest defence spending surge since the Korean war.

In a post on Truth Social, Trump said the figure was set after consultations with lawmakers and cabinet officials, arguing that "dangerous times" demanded a far bigger Pentagon. The proposal comes amid aggressive United States actions abroad and renewed talk of using military power to reshape global security priorities.

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Markets reacted quickly. Shares in major defence contractors jumped in after-hours trading, with investors betting on a flood of new contracts if Congress signs off on the plan.

Trump insists the increase would be paid for by tariff revenues and would not add to the national debt, a claim widely questioned by analysts. Independent estimates suggest the plan could add trillions of dollars to US borrowing over the next decade, even assuming tariffs remain in place.

Donald Trump

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