Why Trump Wants a $1.5 Trillion U.S. Military

President Donald Trump has proposed a dramatic increase in U.S. military spending, calling for the defense budget to rise to $1.5 trillion by 2027, more than 50% higher than the current $901 billion approved by Congress.

Trump says the expansion is needed for what he calls “very troubled and dangerous times,” as tensions rise across multiple regions of the world.

The proposal comes after a series of escalating global developments, including the U.S. seizure of Venezuelan leader Nicolás Maduro, China’s military drills around Taiwan, and the capture of a Russian-flagged tanker suspected of violating U.S. sanctions. Trump argues these events show the U.S. must move faster to modernize its military and increase weapons production.

He has also criticized major defense contractors for prioritizing shareholder payouts and executive compensation over expanding manufacturing capacity. Trump has threatened to restrict government contracts for companies that do not invest in new plants and faster weapons delivery. In particular, he singled out Raytheon as one of the slowest to respond to Pentagon needs.

Financial markets reacted quickly, with shares of major U.S. defense firms rising after Trump’s announcement. Economists, however, have warned that the U.S. deficit is already stretched, raising questions about how the spending would be funded, even as Trump says tariffs will help pay for it.