President Donald Trump made the largest military spending request in history on Friday, with a proposed budget for the 2027 fiscal year of $1.5 trillion in defense spending, of which $1.1 trillion would be allocated for the Department of War and $350 billion specifically for critical munitions.
The record request was announced in January after former Venezuelan dictator Nicolás Maduro’s capture, but before the United States launched attacks on Iran. To pay for the uptick in defense spending, the White House proposes to reduce non-defense spending by 10%.
The White House says the spending request reflects the current global threat environment and restores the readiness and lethality of the United States military. The money would also include a salary increase for all military personnel, with junior enlisted members receiving the largest salary bump at 7%. Mid-level service members, E-6 to O-3, would receive a 6% pay raise, and higher-ranking officers would receive a 5% raise. The White House predicts the increase will help with service member retention and recruiting efforts.
Funds would also be directed to the construction of the United States’ “Golden Dome,” which would be similar to Israel’s Iron Dome missile defense system. The Golden Dome would track missiles through launch, in midcourse, and on their descent, potentially using space-based technology to intercept missiles. Unlike Israel’s Iron Dome, America’s Golden Dome would aim to stop long-range missiles and potentially hypersonic weapons, which are a growing concern posed by adversaries like China, Russia, and North Korea.
The budget would also focus on “making shipbuilding great again,” adding 18 battle force ships and 16 non-battle force ships to the United States naval fleet. By ship count, China currently has the largest navy, with the United States in second place.
Another large category of investment will be in critical mineral stockpiles. Currently, the United States Department of the Interior lists 60 minerals as critical, of which 15 are rare earth elements. The list ranges from aluminum to zinc, and the push reflects a broader strategy Trump employed in global negotiations. The president pushed to bring steel and aluminum production back to the United States while also taking a stake in MP Materials, which is the only fully integrated rare earth producer in America. Rare earth minerals are used in magnets and batteries, as well as defense applications and AI chips, making them a national security priority.
One of the Senate’s most prominent fiscal hawks, Senator Ron Johnson (R-WI), told The Daily Wire: “With total debt approaching $39 trillion, reduced spending in other areas will be required,” and “aggressively eliminating the $700 billion to $1 trillion in annual fraud would be the primary target.”
Johnson sees the road to getting the president’s request passed before the fiscal year begins on October 1 as challenging.
“Even though defense of our nation is the top priority of the government, Democrats will not support the president’s request,” said Johnson. The senator sees two paths ahead: Republicans voting to end the filibuster or pursuing a reconciliation appropriation process to get Republican votes.
If Republicans take the nuclear option, they would be able to pass bills with a simple majority of 51 votes instead of 60. The reconciliation appropriation process would also be challenging due to the Byrd Rule, which allows senators to block or remove parts of a reconciliation deal. A provision can be stripped out unless 60 senators vote to keep it, and with Republicans holding 53 seats, the road to 60 would be challenging.
President Trump signaled on Wednesday that defense spending is a top priority. “We’re fighting wars. It’s not possible for us to take care of day care, Medicaid, Medicare—all these individual things. They can do it on a state basis. You can’t do it on a federal.”
The federal government currently runs a deficit of $2 trillion.
Commerce Secretary Howard Lutnick said the initial plan was for him to raise the United States’ revenue by $1 trillion and for Elon Musk to reduce waste, fraud, and abuse by spending $1 trillion to balance the budget. Lutnick and Trump launched tariffs to increase revenue and created the gold card, which charges foreigners $1 million for United States residency on the condition of background check approval. Revenues and spending cuts have fallen short of these expectations, creating tensions around increased military spending amid a runaway budget.
