Trump proposes increase in 2027 defence spending to $1.5 trillion, citing ‘dangerous times’

A soldier assigned to the U.S. Army Reserve’s 1st Mission Support Command climbs into a U.S. Army vehicle during preparations for the annual Caribbean Army Week at Fort Buchanan, in San Juan, Puerto Rico, on January 7, 2026. | Photo Credit: Reuters

President Donald Trump on Wednesday (January 7, 2025) proposed setting military spending at $1.5 trillion in 2027, citing “troubled and dangerous times.”

Mr. Trump called for the massive surge in spending days after he ordered a U.S. military operation to capture Venezuelan leader Nicolás Maduro and spirit him out of the country to face drug trafficking charges in the United States.

U.S. forces continue to mass in the Caribbean Sea.

The 2026 military budget is set at $901 billion.

Mr. Trump in recent days has also called for taking over the Danish territory of Greenland for national security reasons and has suggested he’s open to carrying out military operations in Colombia.

Secretary of State Marco Rubio has ominously warned that longtime adversary Cuba “is in trouble.”

“This will allow us to build the Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Mr. Trump said in a posting on Truth Social announcing his proposal.

He added that he feels comfortable surging spending on the military because of increased revenue created by his administration through tariffs imposed on friends and foes around the globe since his return to office.

Meanwhile, Mr. Trump on Wednesday (January 7) also threatened to cut off Pentagon purchases from Raytheon, one of the biggest U.S. defence contractors, if the company did not end the practice of stock buybacks and invest more profits into building out its weapons manufacturing capacity.

Mr. Trump in recent months has repeatedly complained that defense companies have been woefully behind on deliveries of critical weaponry, yet continue to mete out dividends and stock buybacks to investors and offering eye-popping salaries to top executives.

“Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War,” Mr. Trump said on social media.

“Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together.”

On Wall Street, shares of defense contractors fell, with Northrop Grumman dropping 5.5%, Lockheed Martin declining 4.8 % and RTX Corp., the parent company of Raytheon, slipping 2.5%

Published – January 08, 2026 04:13 am IST

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