President Trump has just called for a monumental increase in defense spending, pushing the 2027 military budget up to a staggering $1.5 trillion. This proposed budget is a massive 50% jump over the current record spending, which is expected to breach the $1 trillion mark for the first time in 2026.
The president announced the figure on Truth Social Thursday evening. He stated that after “long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives,” he settled on the $1.5 trillion amount for the good of the country, especially given these “very troubled and dangerous times.”
This funding level would bring the total defense spending to 5% of the country’s GDP, a significant leap from the current 3.5%. The goal, the president says, is to build the “Dream Military” that will bolster Trump’s dreams of conquest. More importantly, he said, this new spending level will keep the country “SAFE and SECURE, regardless of foe.”
The tariffs haven’t worked yet, but they somehow will in the future
This huge infusion of cash would directly fund some seriously ambitious defense plans. We’re talking about developing the advanced Golden Dome homeland missile defense shield. We’re also looking at launching a whole new line of warships, dubbed the “Trump class” battleships.
Now, you’re probably wondering how we’re going to pay for this half-trillion-dollar increase. President Trump claims the money is already rolling in thanks to his tariff revenues. He argues that the levies are generating such a massive surplus of cash that they can “easily” fund the defense boost. Not only that, but he believes the revenues can also pay down the national debt, which currently sits at more than $38 trillion, and offer “a substantial dividend to moderate income patriots.”
While that sounds like a fantastic plan, some financial experts are looking at the math a little differently. The Committee for a Responsible Federal Budget took a hard look at the overall cost. They figured that the increased budget would actually cost about $5 trillion between 2027 and 2035. According to their analysis, the tariff revenues would only cover about half of that cost, roughly $2.5 trillion.
It’s definitely something to keep an eye on, especially since the Supreme Court is expected to rule soon on the legality of the president’s sweeping tariff strategy. If that strategy changes, the funding plan changes, too.
What’s wild is that this budget announcement came right after President Trump went full throttle in slamming major defense contractors for their slow performance rates. He isn’t happy with how slowly these companies are delivering vital equipment to our military and our allies.
He put his foot down on executive compensation, declaring he wouldn’t allow defense firms to offer large salaries to executives, buy back their own stocks, or issue dividends to shareholders. He stated bluntly, “Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies.”
He also added that these companies “are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly.” That’s a brutal assessment, and frankly, if they’re slowing down vital defense delivery, I think that intense pressure is absolutely warranted.
Published: Jan 9, 2026 08:16 am