President Trump proposed a $1.5 trillion U.S. military budget for 2027—about a 66% increase over the $901 billion 2026 allocation—saying the nation faces "troubled and dangerous times." He made the announcement after ordering an operation to apprehend former Venezuelan President Nicolás Maduro and amid a regional military buildup. Trump also threatened to block Pentagon purchases from Raytheon unless it halts stock buybacks and boosts weapons production. Officials note tariff revenues have risen sharply but are unlikely to cover all the administration’s fiscal promises.
Trump Proposes $1.5 Trillion Military Budget for 2027, Threatens Raytheon Over Stock Buybacks
President Donald Trump on Wednesday proposed raising U.S. military spending to $1.5 trillion in 2027, calling the nation’s security environment "troubled and dangerous." The proposal would increase the planned 2026 defense budget of $901 billion by roughly 66%.
What He Announced
Mr. Trump announced the proposal on Truth Social, saying the funding would allow the United States to build a so-called "Dream Military" to keep the country "SAFE and SECURE, regardless of foe." The announcement came days after he ordered a U.S. operation to seize former Venezuelan President Nicolás Maduro on drug-trafficking charges, following weeks of military buildup and strikes in the Caribbean region.
Administration’s Funding Rationale
The president pointed to a large increase in tariff and excise-tax revenue since his return to office as justification for the proposed surge. According to the Bipartisan Policy Center, gross revenues from tariffs and other excise taxes rose to $288.5 billion last year, up from $98.3 billion in 2024. Analysts say the rise is notable but unlikely to cover all of the administration’s simultaneous promises—such as taxpayer rebates, debt reduction and a major defense expansion.
Pressure on Defense Contractors
Separately, Mr. Trump threatened to cut Pentagon contracts with Raytheon (RTX Corp.) unless the company stops stock buybacks and redirects profits into expanding weapons production capacity. He criticized defense firms for slow deliveries of critical systems while continuing dividends, buybacks and high executive pay.
"Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War," the president wrote on social media.
Raytheon makes widely used systems such as the Tomahawk cruise missile, Javelin and Stinger shoulder-fired missiles, and the Sidewinder air-to-air missile. Its parent, RTX, also owns Pratt & Whitney, a major military engine maker whose products power aircraft including the F-35 Joint Strike Fighter.
Market And Political Reaction
Shares of major defense contractors fell after the announcement: Northrop Grumman dropped about 5.5%, Lockheed Martin fell roughly 4.8%, and RTX slipped about 2.5%. Politically, the proposal is likely to face resistance from Democrats who typically seek parity between defense and non-defense spending, and from Republican deficit hawks concerned about large deficits.
Context And Next Steps
The president has also floated other interventionist measures in the Western Hemisphere—labeling his approach the "Don-roe Doctrine"—and has suggested actions involving territories such as Greenland and operations in countries like Colombia. Any formal budget change would require congressional approval and face scrutiny from budget analysts, lawmakers and defense planners.
Raytheon did not immediately respond to a request for comment to the Associated Press.
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