Trump is asking Congress for a massive increase in the defense budget, already at a record high, and citing “very troubled and dangerous times”

The proposed huge increase in defense spending comes as Trump has increasingly used the military to achieve his foreign policy goals during his second term, writes the Financial Times.

Donald Trump plans to ask US Congressmen for $1.5 trillion in defense spending, a more than 50 percent increase over this year's record $901 billion budget.

The increase would allow the United States to build a “dream military” and would be funded by tariffs, the president said in a social media post on Wednesday.

“I have decided that for the good of our country, especially in these very troubled and dangerous times, our 2027 military budget should not be $1 trillion, but rather $1.5 trillion,” Trump wrote.

“Because of the enormous taxes and revenue they bring in,” he added, “we can easily reach $1.5 trillion.”

A foreign policy tool

The proposed huge increase in defense spending comes as Trump has increasingly used the military to achieve his foreign policy goals during his second term, writes the Financial Times.

US forces seized a Russian oil tanker in the Atlantic Ocean on Wednesday for alleged sanctions violations, days after a major operation to capture Venezuelan leader Nicolás Maduro.

On Tuesday, the White House stepped up rhetoric about taking control of Greenland, saying “the use of the U.S. military” was among the options Trump was considering.

Trump said the $1.5 trillion figure was set after negotiations with congressmen and other politicians.

How sustainable is the increase the president is asking for?

A 50% increase in defense spending could raise concerns about the sustainability of the government's finances.

The Congressional Budget Office (CBO), Congress's fiscal watchdog, estimates that the US budget deficit will be 5.5% this year — a level lower than in recent years, but which many economists see as unsustainable.

Although Trump's taxes helped reduce the deficit in 2025, the CBO projected in November that they would generate only $2.5 trillion over 11 years — about $230 billion a year — far less than the projected $500 billion increase in defense spending.

The president said revenue from trade taxes covered the increase and further allowed the US to reduce the national debt and pay a “substantial dividend” to middle-income Americans.

On Wednesday, the president also said he “will not allow” US defense companies to issue share buybacks or dividends until they respond to his demand to produce military equipment faster and more reliably.

He specifically mentioned Raytheon. “Either Raytheon steps up and starts investing more in facilities and equipment, or it will stop doing business with the War Department.”

Shares of Raytheon closed down 2.5%. Lockheed Martin fell 4.8 percent and Northrop Grumman fell 5.5 percent. General Dynamics lost 4.2%.