Donald Trump proposes raising defense budget to $1.5 trillion in 2027

US President Donald Trump has announced a 50% increase in the military budget for 2027, from $1 trillion to $1.5 trillion. The decision follows negotiations with senators and political representatives. Trump justifies the rise due to current 'troubled and dangerous' times.

US President Donald Trump stated on Wednesday, January 7, 2026, that he wants to raise the defense budget to $1.5 trillion for 2027, up from the initially planned $1 trillion. This proposal marks a 50% increase and stems from discussions with American senators and political representatives.

In a post on his social network Truth Social, Trump explained: “I have decided that, for the good of our country, especially in these very troubled and dangerous times, our military budget for 2027 should not be $1 trillion, but rather $1.5 trillion.”

This announcement comes amid heightened geopolitical tensions, though specific details of the negotiations were not disclosed. The US military budget, already the world's highest, could thus bolster defense capabilities against current global challenges.

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President Trump presents record $1.5 trillion defense budget proposal amid wars in Iran and Venezuela.
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Trump proposes record $1.5 trillion defense budget for 2027

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President Donald Trump released his fiscal year 2027 budget request on Friday, seeking a record $1.5 trillion in defense spending amid ongoing wars with Iran and operations in Venezuela. The proposal includes a 42% to 44% increase from the previous year and calls for 10% cuts to non-defense spending. White House officials described the plan as essential for restoring military readiness in a dangerous global environment.

China announced on Thursday a 7% increase in defense spending for 2026, the lowest rate in five years but still exceeding economic growth targets amid rising regional tensions. The move supports military modernization by 2035, with references to Taiwan. Premier Li Qiang highlighted improvements in combat readiness.

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Defense Minister Shinjiro Koizumi said Friday that Japan's initial budget for defense spending and related costs in fiscal 2026 totals about 10.6 trillion yen ($66.5 billion), roughly 1.9 percent of its 2022 gross domestic product or around 1.5 percent using projected fiscal 2026 GDP. Japan aims to raise spending to 2 percent of GDP by fiscal 2027.

Reuters reported on Friday that a US$14 billion arms package to Taiwan, possibly the largest ever, is ready for US President Donald Trump's approval and could be announced after his visit to Beijing. Despite the delay in the Trump-Xi summit, Taiwan's Defence Minister Wellington Koo Li-hsiung reassured on Tuesday that Taipei had received no indication of any sales delay. Broader concerns loom as the US depletes ammunition stockpiles in the war on Iran.

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South Korea's government, ruling Democratic Party and presidential office agreed on a 25 trillion-won supplementary budget to address the Middle East crisis. The bill is set for submission to the National Assembly by end-March and passage on April 10. It aims to ease high oil prices and economic uncertainties.

A senior Cheong Wa Dae official said the government may consider another supplementary budget in the second half if the Middle East crisis persists. Hong Ik-pyo, presidential secretary for political affairs, denied opposition claims that the pending 26.2 trillion-won extra budget seeks political leverage before June 3 local elections. He cited downgraded growth forecasts and rising fuel prices.

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President Donald Trump said in a Tuesday CNBC interview that he anticipated oil prices surging to $200 per barrel when he authorized military action against Iran. Current prices stand at $90 per barrel, the highest since 2022, lower than his forecast. He also noted the stock market has remained stable despite his predictions of a sharp decline.

 

 

 

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