On Friday, the White House unveiled its 2027 budget proposal to Congress, featuring a significant $1.5 trillion allocation for the Department of War. This marks an increase of $445 billion in defense spending compared to the previous year.
In the proposed budget, $1.15 trillion is designated as discretionary spending. Notably, at least $350 billion of this will be allocated through budget reconciliation, with the aim of bolstering the defense industrial base amid the ongoing conflict with Iran.
The Office of Management and Budget has further suggested trimming non-defense expenditures by $73 billion, representing a 10% reduction from the fiscal year 2026.
Included in the defense budget are plans for a salary increase of six to seven percent for military personnel, funding for “critical munitions,” development of President Trump’s “Golden Dome” missile defense system, and investments in “critical minerals and domestic supply chains.” Additionally, $65.8 billion is earmarked for shipbuilding.
An OMB fact sheet highlighted the scale of the defense spending, stating, “This amount surpasses even the Reagan-era buildup, approaching the historic increases seen just before World War II. It reflects the current global threat environment and aims to enhance the readiness and effectiveness of our forces.”
The document further noted, “The comprehensive government and national order for 41 ships is the largest maritime industrial base demand since the administration of Franklin D. Roosevelt.”
Additionally, the Department of War is expected to reduce Diversity, Equity and Inclusion program spending by “millions of dollars” more after eliminating more than $1.6 billion.
