US President Donald Trump said on Wednesday that he wants the United States to spend $1.5 trillion on the military in 2027. He said the increase is needed because the world is facing “troubled and dangerous times.”
The proposed figure is a massive jump from current levels. The US military budget for 2026 is set at $901 billion. If approved by Congress, this would mark more than a 50 percent jump from the current defense budget. It would also become the largest military budget in US history.
Trump calls for massive $1.5 trillion defence spending
Trump’s call for higher military spending came just days after he ordered a US military operation in Venezuela, capturing Venezuelan President Nicolás Maduro. The plan was to remove Maduro from Venezuela and bring him to the United States to face drug trafficking charges. In his Truth Social post on Wednesday, Trump said the $1.5 trillion figure came after discussions with lawmakers on Capitol Hill. He argued that the money is needed to build America’s “Dream Military.”
“I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” he said in a Truth Social post.
In the same Truth Social post, Trump also issued a warning to Raytheon, one of the largest defence contractors in the United States. He said the Pentagon could stop buying from the company if it does not end its practice of stock buybacks and instead put more money into expanding weapons manufacturing. “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,” he wrote.
Trump’s comments had an immediate impact on defense stocks. Shares of Northrop Grumman fell 5.5 percent, while Lockheed Martin dropped 4.8 percent. RTX Corp., the parent company of Raytheon, saw its stock slip 2.5 percent, according to PBS.
In recent days, Trump has also made several strong statements about US military involvement overseas. He has said the United States should take control of Greenland, a Danish territory, arguing it is important for national security. Trump has also suggested he is open to launching military operations in Colombia.
Tariffs to fund the plan, Trump claims
Trump also said the massive defence budget would be easy to fund because of money coming in from tariffs. He claimed tariff income would allow the US government to “easily hit” the $1.5 trillion target without putting pressure on other areas. “If it weren’t for the tremendous numbers being produced by Tariffs from other Countries, many of which, in the past, have ‘ripped off’ the United States at levels never seen before, I would stay at the $1 Trillion Dollar number,” he said.
The US Treasury Department reported that tariffs brought in about $195 billion in 2025. Trump has repeatedly pointed to this revenue as a key source of funding for several major promises.
Beyond defence spending, Trump said tariff income could also help reduce the national debt. He has also spoken about issuing a special dividend for what he described as “moderate income Patriots within our Country.”
The administration has previously floated the idea of sending $2,000 rebate checks to Americans using tariff revenue. However, as of January, no clear plan has been shared on how or when these payments would be distributed.
In December, Trump approved a $12 billion aid package for American farmers. This included support for soybean farmers who were hit hard by earlier tariff policies. The president said this aid would also be funded through tariff revenue.