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Trump proposes a 30% increase in the defense budget for 2027: would rise to $1.5 trillion and be funded by tariffs

This 30% increase over 2026 seeks to build a "dream military" and keep Americans "safe and secure" in times of geopolitical instability.

Trump and Hegseth at the White House/Andrew Caballero-Reynolds.

Trump and Hegseth at the White House/Andrew Caballero-Reynolds.AFP

Joaquín Núñez
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Donald Trump is seeking a 30% increase in defense spending by 2027, bringing it to $1.5 trillion. According to the president, the federal government will be able to fund the increase with tariff revenues, with the goal of "building the Armed Forces dreamed of" and keeping Americans "safe and secure" in times of geopolitical instability.

According to the National Defense Authorization Act (NDAA) for fiscal year 2026, the budget for the Pentagon and other defense-linked programs is $901 billion. However, Congress must still approve that appropriation. Therefore, Trump's proposal would involve a significant increase heading into 2027.

The president communicated his intentions on Truth Social, where he assured that, in this context of geopolitical turbulence, increasing the defense budget is critical to U.S. national security.

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"After long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives, I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 trillion, but rather $1.5 trillion. 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," Trump wrote.

"If it weren’t for the tremendous numbers being produced by Tariffs from other Countries, many of which, in the past, have 'ripped off' the United States at levels never seen before, I would stay at the $1 Trillion number but, because of Tariffs, and the tremendous Income that they bring, amounts are being generated that would have been unthinkable in the past (especially just one year ago during the Sleepy Joe Biden Administration, the Worst President in the History of our Country!)", he added.

In turn, the Republican specified that the tariffs will also help reduce the public debt and pay a "substantial dividend" to middle- and low-income Americans.

Trump's path to budget $1.5 trillion for defense

According to the U.S. Constitution, the president does not have the power to increase the military budget independently, but must do so through Congress. The Legislative Branch is the only one that can allocate money from the Treasury.

Therefore, to increase the defense budget by 30%, he must submit a budget request ('budget request') to Congress. From there, a complex legislative process begins involving hearings, negotiations, and votes in both chambers.

In the defense arena, that process is divided into two different laws: first, Congress must pass the National Defense Authorization Act (NDAA), which authorizes programs, defines strategic priorities and sets spending ceilings. However, the NDAA does not release funds. In order for the money to actually be spent, a second law is needed: the Defense Appropriations Act, which allocates the actual resources. Only when both laws are passed can the Defense Department dispose of the funds.

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