Trump Proposes 50% Increase in US Military Budget

US President Donald Trump has proposed a major increase in military spending. He wants the US defense budget to reach $1.5 trillion by 2027.

Trump said the move is necessary due to rising global security challenges. He made the announcement on January 7, 2026, through posts on social media.

Defense Budget Could Rise by Half

If approved, the plan would raise military spending by about 50%. The current US defense budget stands at $901 billion, which Congress approved in December 2025.

Trump said the extra funding would help the United States build a stronger and more modern military.

“This will help us create the military of our dreams,” Trump said. “More importantly, it will help keep our country safe.”

Focus on Weapons Production and Efficiency

Trump also warned defense contractors working with the US Department of Defense. He said some companies receive large payments but delay weapons production.

He promised stricter measures to push firms to speed up the manufacturing of weapons, ammunition, and military equipment.

The president emphasized the need to expand factories that produce missiles, bombs, and other defense systems.

Defense Stocks Rise After Announcement

Following Trump’s statement, shares of major US defense companies rose on the stock market.

Companies that saw gains include Lockheed Martin, Northrop Grumman, and Raytheon Technologies. Investors reacted positively to the possibility of increased government spending on defense contracts.

Congress Holds the Final Decision

Trump’s proposal must still be approved by the US Congress. Lawmakers are expected to debate the cost and long-term impact of such a large increase in military spending.

The plan comes as the US faces growing geopolitical tensions and ongoing conflicts around the world.