Trump unviels a new class of U.S.wasrshipnamed after him.

Paul McLeary, Connor O’Brien and Joe Gould – Politico Jan 7, 2026

President Donald Trump on Wednesday declared he would ask Congress for a $1.5 trillion defense budget in 2027, a massive $500 billion increase from this year’s Pentagon budget.

The huge boost likely reflects how expensive some of Trump’s military ambitions are, from the Golden Dome air defense effort to his call for a new battleship design. Neither of those programs could be fully funded under current spending levels.

The president provided few details in his post on Truth Social, other than to say the money would pay for his “Dream Military.” Trump did suggest that tariff revenues could cover the increase, but even if he managed to circumvent Congress’ constitutionally mandated power over spending, existing tariff collections would still be several hundred billion short of what the president plans to ask for.

While finding half-a-trillion dollars in new spending would prove difficult, Trump and some congressional Republicans appeared confident they could do so. The budget reached $1 trillion this year thanks to $150 billion in new money Congress voted to pour into Pentagon coffers via a reconciliation bill, although much of that will be spread out over the next five years on various long-term projects.

Lawmakers have yet to complete a defense spending bill for this fiscal year, although a final agreement is expected to increase Trump’s budget request by several billion dollars.

Some Republicans have long argued for significant annual increases in Pentagon funding, with a topline total of around 5 percent of GDP, up from the current 3.5 percent.

Rep. Don Bacon (R-Neb.) called Trump’s aspirations “a good news story” after his administration proposed budgets defense hawks on Capitol Hill saw as lacking.

“We think we need a permanent 4 percent [of GDP] or better,” Bacon said. “That’s what it’s gonna take to build our Navy, our Air Force, our ICBMs, our bombers, and take care of our troops.”

The 2026 budget only reached $1 trillion due to the $150 billion added on by Congress. That one-time infusion gave a boost to Golden Dome as well as new initiatives to build more precision-guided munitions and air defense weapons. But the funding will need to be included in year-on-year spending legislation, something Trump’s new proposal appears to take into account.

Trump’s surprise budget announcement came just hours after he sent defense stocks plunging by railing against the performance of major defense companies.

In another social media post, Trump said he would not allow defense companies to buy back their own stocks, offer executives large salaries and issue dividends to shareholders. He also slammed the companies for moving too slowly, and charging too much, for weapons.

“A lot of us are saying we want a commitment to a sustained spending [increase], not just a one-year,” Bacon said.

The White House and Republicans have left open the possibility of another party-line megabill that could be used to increase defense spending again this year. It is unclear if GOP leaders are willing to pursue the procedurally and politically arduous approach again while they still maintain control of both chambers of Congress.

Republicans would need to use that process again to accommodate even a portion of Trump’s request because Democrats are likely to balk at any move that slashes healthcare benefits, education and foreign aid in the ways Republicans have sought, said one defense lobbyist.

“Golden Dome and Golden Fleet are completely unaffordable without budgets of this size, so the administration would need to come up with the numbers to back it up,” said the lobbyist, who was granted anonymity to discuss sensitive spending dynamics. “But my guess is that the extra money will have to be in reconciliation.”

House Appropriations Chair Tom Cole (R-Okla.) said overall defense spending “needs to go up,” but wouldn’t say if the massive increase pitched by Trump is realistic.

“I’ll take any request the president makes seriously, and we’ll see,” Cole said. Another senior House appropriator, Rep. Steve Womack (R-Ark.), hailed Trump as “absolutely right” in his own post.

“For too long, we have underfunded our defense apparatus—undermining our national security and benefiting our foreign adversaries,” Womack said. “A strong national defense is critical to our long‑term prosperity and to protecting our country against every emerging threat. I commend President Trump for his leadership and look forward to working to advance a $1.5 trillion defense bill.”

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