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Moody's analyst says $1.5 trillion Trump defense budget plan could widen deficits

President Trump’s $1.5 trillion defense budget proposal includes contractor performance conditions and aims to expand naval shipbuilding despite warnings of increased federal deficits.

  • On Wednesday, President Donald Trump proposed a $1.5 trillion defense budget for 2027 and announced a plan for the Golden Fleet at Mar-a-Lago Club, Florida.
  • The administration justified the $1.5 trillion request citing global instability and the operation to capture Nicolás Maduro, with Trump saying higher tariff revenues would fund it, but critics say funds fall short.
  • Threatening contractors, Trump warned Raytheon to stop buybacks and invest in production capacity, while Secretary of the Navy John Phelan and others said Ingalls Shipbuilding can rapidly build next-generation frigates.
  • At Ingalls Shipbuilding, officials said labor shortages remain the biggest constraint as the yard prepares to deliver its first FF frigate by 2028.
  • The proposal would exceed the projected $901 billion defense budget for 2026 and comes as the administration backs Russia sanctions while Ukraine peace talks continue.
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La Jornada broke the news in Mexico on Thursday, January 8, 2026.
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