Washington (TDI): US President Donald Trump has proposed a dramatic expansion of America’s defense budget, calling for a 50 per cent increase to $1.5 trillion for 2027, amid what he described as an increasingly unstable and dangerous global environment.
He said the scale of the increase was necessary to confront rising security threats and ensure the United States maintains overwhelming military strength. Despite the Pentagon already operating at historically high funding levels, the president argued that current conditions demand a much larger investment.
In a post on his Truth Social platform, Trump said he had decided that a $1 trillion defense budget would no longer be sufficient. Instead, he said, the US must commit $1.5 trillion to build what he called a “dream military” capable of protecting the country against any adversary.
Trump claimed the funding boost would be made possible by revenue generated through wide-ranging tariffs imposed on both allies and rivals, a policy he has repeatedly defended as strengthening US finances.
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The United States already spends more on its armed forces than any other country, and a jump to $1.5 trillion would widen the gap further with major competitors such as China and Russia. Analysts warn, however, that such a move could accelerate global military competition and fuel a new arms race.
The budget proposal follows a pledge made last year by NATO members to raise defense spending to five per cent of GDP by 2035, a commitment driven largely by sustained pressure from Washington.
Even as the proposed increase would significantly benefit defense manufacturers, Trump sharply criticized major contractors, accusing them of prioritizing shareholder payouts over long-term investment.
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In additional Truth Social posts, he said defense companies were handing out large dividends and conducting stock buybacks instead of expanding production capacity. He also described executive pay in the sector as excessive, calling it “unjustifiable”.
Trump suggested capping executive salaries at $5 million and said dividends and buybacks should be suspended until companies reinvest more heavily in facilities and equipment, though he did not explain how such measures would be enforced.
