USA Trump wants to dramatically increase military spending in 2027
US President Donald Trump wants dramatically higher defense spending for the 2027 fiscal year in light of "very anxious and dangerous times". The military budget should increase from the current level of around 1 trillion US dollars to 1.5 trillion dollars (currently around 1.28 trillion euros), Trump wrote on his Truth Social platform.
08.01.2026, 09:45
SDA
The higher budget would be used to build a "dream military" that could guarantee the security of the USA "no matter who the enemy is", according to Trump. Around 900 billion dollars have been earmarked for defense spending for the 2026 financial year. It seems relatively unlikely that Trump will be able to push through his desired increase of almost two thirds in Congress.
Although Republicans currently have narrow majorities in both chambers, not all of Trump's party colleagues are likely to be in favor of such an increase in spending - especially before the mid-term elections in November. This is when the House of Representatives and around a third of the seats in the Senate will be re-elected. In that chamber of parliament, 60 votes are often required to advance legislation, so Republican senators would also need the support of some Democrats.
Trump wants to use revenue from tariffs for higher military spending
In his post, Trump claimed that the higher revenue from the additional tariffs he imposed could "easily" pay for an increase in the defense budget. At the same time, the revenue should also help to pay off the national debt and write all Americans a "significant" check as a bonus.
However, experts consider Trump's calculation to be wishful thinking. In a November estimate, the independent Congressional Budget Office (CBO), for example, expected additional revenue of a good 200 billion dollars per year due to the higher tariffs. An analysis by the think tank Bipartisan Policy Center concludes that tariff revenues in 2025 under Trump will have increased by almost USD 200 billion compared to the previous year.
"Peace through strength" - Trump relies on the military
Trump's second term in office is characterized by a focus on the military and his proclaimed principle of "peace through strength". Trump had the Department of Defense renamed the "War Department", and he and his "Secretary of War" Pete Hegseth like to talk about the "fighters" in the US military - the term soldiers seems too harmless to them.
Most recently, the US military took Venezuelan head of state Nicolás Maduro prisoner in a commando operation in Caracas at the weekend. He was taken to the USA, where he is facing trial in New York for alleged drug offenses. Trump has also not ruled out military action for his desire to incorporate Greenland, which belongs to Denmark, into the USA.
Trump puts pressure on arms companies
The President also criticized what he sees as sluggish production by US defence companies. He wants to exert more pressure on the industry and ban dividend payouts and share buybacks until further notice. The measures, which are usually used to return capital to shareholders, are carried out "at the expense and to the detriment of investments in production facilities and equipment", Trump wrote in another post on the Truth Social platform.
He also believes that managers of such companies should not be allowed to earn more than five million US dollars (around 4.27 million euros) per year. This is how Trump wants to bring about a concession. However, it initially remained unclear how the US president intends to enforce the bans and whether he is even allowed to implement such plans. Although companies in the arms industry depend on government contracts, they are not private companies bound by instructions.
President wants to boost US weapons production
Trump issued an executive order on Wednesday stating: "Our nation can only live in peace if we maintain strength." He criticized that the arms industry had set the wrong priorities in recent years - it had been tempted to put returns for investors "above the needs of our soldiers".
Trump also called on Truth Social for "new and modern" production facilities to be built - "both for the supply and maintenance of this important equipment and for the manufacture of the latest models of future military equipment". As soon as the "problems" have been solved, he wants to reauthorize dividend payments and share buybacks and lift the cap on executive salaries.
Defense industry booming
The demand for armaments has recently increased massively, primarily due to the Russian war of aggression in Ukraine. US-made weapons and ammunition were also used on a massive scale during the war in Gaza and the attacks on Iran last year. Many arms companies have very full order books - and customers have to be patient.
