Trump Proposes $1.5T Defense Budget in 2027 Amid Global Tensions/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump has proposed a historic $1.5 trillion defense budget for 2027, citing heightened global threats. The plan follows aggressive U.S. military actions abroad and sharp criticism of major defense contractors like Raytheon. The proposal includes an executive order restricting stock buybacks for underperforming defense firms.
Trump’s Defense Budget Plan Quick Looks
- Trump calls for $1.5 trillion defense budget in 2027
- Move follows Venezuela raid and rising global tensions
- U.S. military spending in 2026 is currently $901 billion
- Plan includes new executive order targeting defense contractors
- Raytheon threatened over stock buybacks, underperformance
- Executive order mandates Pentagon review of defense firms
- Trump cites tariff revenue as partial funding source
- Critics warn budget would worsen U.S. deficit
- Defense stocks drop amid backlash and executive pressure
- Trump vows to build the “Dream Military”
Trump Proposes $1.5T Defense Budget in 2027 Amid Global Tensions
Deep Look
WASHINGTON, D.C. — President Donald Trump unveiled a sweeping proposal Wednesday to raise the U.S. military budget to an unprecedented $1.5 trillion in 2027, describing the initiative as essential to protect the nation during what he called “dangerous times.”
The proposed increase comes amid a surge in military operations abroad, including the capture of Venezuelan leader Nicolás Maduro and growing tensions with Colombia, Greenland, and Cuba.
“This will allow us to build the ‘Dream Military’ that we have long been entitled to,” Trump declared on his social media platform, Truth Social.
The proposal would represent a 66% increase from the current $901 billion defense budget for 2026. It builds on a previous Republican-passed tax and spending bill that already added $175 billion to military funding.
Global Instability Drives Trump’s Agenda
Trump’s call for higher spending comes as his administration has taken bold — and controversial — actions on the world stage. In just the past week, Trump authorized a high-risk special forces operation in Venezuela to capture Maduro, prompting fears of escalation in Latin America.
He has also signaled interest in military intervention in Colombia and proposed acquiring Greenland, describing the Arctic island as critical to national defense.
Meanwhile, Secretary of State Marco Rubio has hinted that Cuba could face U.S. action, further raising concerns over regional instability.
A Budget Boost Built on Tariffs?
Trump says his defense plan is funded in part by record-high revenues from tariffs. According to the Bipartisan Policy Center, the U.S. collected $288.5 billion in tariff and excise taxes in 2025, up from $98.3 billion in 2024.
However, critics argue that these revenues fall far short of covering both Trump’s military spending ambitions and his promises to issue taxpayer dividends and reduce the national debt.
Targeting Defense Contractors
In a parallel move, Trump issued an executive order on Wednesday directing the Pentagon to scrutinize defense contractors like Raytheon for underperformance and profit-driven practices, including stock buybacks.
“Either Raytheon steps up… or they will no longer be doing business with Department of War,” Trump warned.
The president said future defense contracts must include provisions banning stock buybacks and limiting executive bonuses during underperformance. His order aims to force defense firms to reinvest in production capacity instead of rewarding shareholders.
Raytheon, the maker of Tomahawk, Javelin, and Stinger missiles, and parent company of Pratt & Whitney (which supplies engines for the F-35 jet), has been singled out as a top offender.
Wall Street Reacts
Trump’s remarks triggered a sell-off in defense stocks:
- Northrop Grumman: -5.5%
- Lockheed Martin: -4.8%
- RTX Corp. (Raytheon): -2.5%
Raytheon has not publicly responded to Trump’s criticisms or the executive order.
Political Blowback Likely
The proposed defense surge is expected to face strong resistance:
- Democrats are likely to push for spending parity with non-defense programs
- Fiscal conservatives in the GOP warn of a ballooning deficit
- National security analysts question the long-term sustainability of such a budget
Still, Trump’s framing of the proposal as a patriotic investment in national security could galvanize conservative voters in an election year.
What’s Next?
While Congress will have the final say on the 2027 budget, Trump’s proposal sets the tone for a year of fierce debate over military strategy, contractor accountability, and America’s global footprint.
As U.S. forces remain active in Latin America and the Arctic, and diplomatic tensions rise, Trump’s vision of a “Dream Military” may become one of the most controversial pillars of his second term.
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