President Donald Trump called for defense spending to be raised to $1.5 trillion, a 50% increase over this year’s record budget. (AP Photo/Evan Vucci)
The boost likely reflects efforts to fund Trump’s ambitious military plans, from the Golden Dome homeland missile defense shield to a new ‘Trump class’ of battleships.
The Committee for a Responsible Federal Budget found that the increased budget would cost about $5 trillion from 2027 to 2035, or $5.7 trillion with interest. Tariff revenues, the group found, would cover about half the cost - $2.5 trillion or $3 trillion with interest.
The Supreme Court is expected to rule in a major case Friday that will determine the legality of Trump’s sweeping tariff strategy.
This year the defense budget is expected to breach $1 trillion for the first time thanks to a $150 billion reconciliation bill Congress passed to boost the expected $900 billion defense spending legislation for fiscal year 2026. Congress has yet to pass a full-year defense budget for 2026.
Some Republicans have long called for a major increase to defense spending to bring the topline total to 5% of GDP, as the $1.5 trillion budget would do, up from the current 3.5%.
U.S. Army soldiers stand near an armored military vehicle on the outskirts of Rumaylan in Syria's northeastern Hasakeh province, bordering Turkey, on March 27, 2023. (Delil Souleiman/AFP via Getty Images)
He said that executives would not be allowed to make above $5 million until they build new production plants.
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Stock buybacks, dividends and executive compensation are generally governed by securities law, state corporate law and private contracts, and cannot be broadly restricted without congressional action.
An executive order the White House released Wednesday frames the restrictions as conditions on future defense contracts, rather than a blanket prohibition. The order directs the secretary of war to ensure that new contracts include provisions barring stock buybacks and corporate distributions during periods of underperformance, non-compliance or inadequate production, as determined by the Pentagon.
https://www.foxnews.com/politics/trump-calls-1-5t-defense-budget-build-dream-military