Trump’s $1.5T ‘Dream military’ budget plans laid bare | US | News
President Donald Trump has proposed a significant increase in U.S. military spending for 2027, up to $1.5 trillion from this year’s budget of $901 billion. This comes amid escalating rhetoric from Trump and Stephen Miller regarding Western Hemisphere expansionism and American conquest.
This call for increased military expenditure comes hot on the heels of a covert operation in Caracas, Venezuela, where several sites were bombed by the U.S. and the nation’s leader was abducted.
Since then, Trump and his allies have suggested that the U.S. should also lay claim to Greenland, a Danish territory and NATO ally, and hinted at potential military actions in Colombia, Cuba and Iran. Analysts have drawn parallels between Trump’s renewed calls for territorial acquisition and the presidency of William McKinley in the 19th century, which saw the conquest of Cuba, Puerto Rico, Hawaii and the Philippines.
“This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Trump announced on Truth Social, unveiling his budget proposal.
The military recently received a substantial injection of around $175 billion in the GOP’s “big, beautiful bill” of tax cuts and spending reductions that Trump signed into law last year, as reported by The Associated Press.
Demands for additional Pentagon funding are likely to face opposition from Democrats, however, it’s also expected to meet resistance from the Republican’s deficit hawks who have previously opposed larger military expenditure.
Yet, Trump expressed confidence in escalating military spending due to increased revenue generated by his administration through tariffs imposed globally since his return to office.
Last year, the U.S. government amassed gross revenues of $288.5 billion from tariffs and other excise taxes, a significant rise from $98.3 billion in 2024, according to the Bipartisan Policy Center. This represents a notable increase in revenues from import taxation.
Trump has issued a stern warning to Raytheon, one of the largest U.S. defence contractors, threatening to halt Pentagon purchases from the company unless it ceases its stock buyback practices and invests more profits into expanding its weapons manufacturing capacity.
In recent months, Trump has voiced his dissatisfaction with defence companies, criticising them for falling behind on deliveries of crucial weaponry while continuing to distribute dividends and stock buybacks to investors and awarding hefty salaries to top executives.
“Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War,” Trump declared on social media. “Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together.”
Raytheon is known for producing some of the military’s most commonly used and notable missiles, including the Tomahawk cruise missile, the shoulder-launched Javelin and Stinger missiles, and the Sidewinder air-to-air missile.
The company also owns Pratt and Whitney, a firm that manufactures a range of jet engines powering aircraft across all military branches, including the latest F-35 Joint Strike Fighter.
On Wall Street, shares of defence contractors took a hit, with Northrop Grumman dropping 5.5%, Lockheed Martin declining 4.8% and RTX Corp., the parent company of Raytheon, slipping 2.5%.
