Skip to main content
New Year’s Sale — Build a balanced news diet with 40% off Vantage
Published loading...Updated

Trump Proposes $1.5T Military Budget, 50% Increase

Trump aims to boost the 2027 U.S. military budget by over 50% to $1.5 trillion and restricts defense contractors' dividends and buybacks to speed production, citing slow delivery and high costs.

  • On Jan. 7, President Donald Trump said he will ask U.S. Congress to raise the military budget to $1.5 trillion for fiscal 2027, announcing the request on Truth Social after negotiations.
  • Trump said tariffs produced the 'tremendous income' needed to fund the 'Dream Military' and the $1.5 trillion increase, citing the administration's claimed funding source.
  • The proposal contrasts with the $901 billion allocated for 2026 and would add $500 billion, triggering after-hours gains and intraday volatility for defense firms with stock swings up to 5%.
  • An executive order would cap executive pay at $5 million and halt dividends and buybacks until firms invest in plants; Trump warned RTX it risks losing DoD contracts unless it shifts capital to equipment.
  • Budget watchdogs and critics warned the plan would worsen debt as tariff revenue annualizes to $364.5 billion at $30.4 billion per month, while the U.S. Supreme Court could rule on tariffs soon.
Insights by Ground AI
Podcasts & Opinions

283 Articles

Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 52% of the sources are Center
52% Center

Factuality Info Icon

To view factuality data please Upgrade to Premium

Ownership

Info Icon

To view ownership data please Upgrade to Vantage

Reuters broke the news in United Kingdom on Wednesday, January 7, 2026.
Too Big Arrow Icon
Sources are mostly out of (0)

Similar News Topics

News
Feed Dots Icon
For You
Search Icon
Search
Blindspot LogoBlindspotLocal