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.

In 2024, US government interest payments on debt surpassed $1 trillion for the first time in history, signaling a major rebalancing in the global economy. Meanwhile, US military spending nears the $1 trillion mark, even as the economy demonstrates remarkable resilience.

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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.

Prime Minister Sanae Takaichi's cabinet approved a record ¥122.3 trillion draft budget for fiscal 2026 on December 26, following the ruling parties' endorsement of a related tax reform plan the prior week. The budget boosts social security and defense spending and will go to parliament on January 23.

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Israeli Prime Minister Benjamin Netanyahu has approved a $108 billion plan over the next decade to develop an independent munitions industry. The announcement, made amid international arms restrictions, aims to reduce Israel's reliance on foreign suppliers. It precedes Netanyahu's upcoming meeting with US President Donald Trump to discuss Gaza governance.

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.

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Nato Secretary-General Mark Rutte stated that Europe lacks the capability to defend itself without United States military support and would need to significantly increase spending to achieve independence. Speaking to European Union lawmakers in Brussels, he emphasized the mutual dependence between Europe and the US. Rutte dismissed notions of European self-reliance as unrealistic.

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