President Donald Trump says the United States plans to dramatically increase military spending in 2027, raising the defense budget from about $1 trillion to $1.5 trillion. In a post on Truth Social, Trump said the move is necessary to protect the country during what he described as “very troubled and dangerous times,” arguing that a stronger military is essential for national security.
He added that the expanded budget would be funded by what he called “tremendous” revenue from tariffs imposed on many countries, claiming the income would be so large that the government could still reduce debt and even provide financial benefits to moderate-income Americans.
Trump described the plan as a step toward building what he called the “Dream Military,” saying it would ensure the United States remains safe regardless of future threats. The proposal would mark a sharp increase from the $901 billion defense budget approved by Congress for 2026, and any changes for 2027 would still need congressional approval.
Alongside the announcement, Trump also criticized major defense contractors such as Raytheon and Lockheed Martin, accusing them of prioritizing shareholder dividends, stock buybacks, and what he called excessive executive pay instead of reinvesting in production and equipment. He said these companies should focus more on strengthening manufacturing capacity before rewarding executives and investors. Despite the criticism, defense stocks rose in after-hours trading following the news, with Raytheon and Lockheed Martin both posting notable gains.
The announcement came shortly after a US military operation in Venezuela that led to the capture of President Nicolás Maduro and his wife, who are now facing prosecution in New York. Trump also warned that countries such as Colombia, Cuba, and Mexico could face similar military pressure, signaling a more aggressive foreign-policy stance alongside the proposed surge in defense spending.