It looks like US President Donald Trump is going big on defense in 2027. Reportedly, Global defense stocks rallied on Thursday, extending gains after Trump called for a $1.5 trillion defense budget in 2027.
“After the 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 Dollars, rather $1.5 Trillion Dollars,” he wrote in a TruthSocial post late Wednesday.
“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.”
Reportedly, Northrop Grumman gained 6.8% in premarket trade on Thursday, Lockheed Martin was last seen 6.7% higher, RTX advanced 5.4%, and Kratos Defense was up 6.6%.
The United States has consistently been the world’s largest military spender, with annual defense budgets growing from around $300 billion in the early 2000s to roughly $900 billion in fiscal year 2026, though total spending may exceed $1 trillion when supplemental and reconciliation funding are included. This funding supports personnel, operations, weapons procurement, research and development, military construction, and nuclear deterrence.
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Historically, spikes in spending have coincided with conflicts or heightened international tensions, such as the post-9/11 wars. In recent years, focus has shifted toward modernizing forces and investing in advanced technologies, including hypersonic weapons, artificial intelligence, cyber capabilities, and space systems. The U.S. also maintains a substantial nuclear triad and invests in missile defense and intelligence operations.
Congress authorizes and appropriates defense funds through the National Defense Authorization Act, balancing readiness with fiscal constraints and domestic priorities. Debates continue over the optimal level and allocation of spending, particularly regarding modernization programs, personnel costs, and emerging threats.
The United States’ defense spending has steadily increased over the past decade, reaching record levels in the mid-2020s. The five most expensive years in nominal terms are: 2025 (~$962 billion), 2024 (~$910 billion), 2023 (~$905 billion), 2022 (~$838 billion), and 2021 (~$759 billion). These budgets funded personnel, operations, weapons procurement, research and development, military construction, and nuclear programs.
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The recent peak in 2025 reflects rising costs associated with modernization, advanced technology development, and responses to global security challenges. Spending growth has also been influenced by inflation, personnel costs, and ongoing international tensions. Historically, U.S. defense outlays surged during World War II and reached high levels in the early 2010s during conflicts in Iraq and Afghanistan.
These figures underscore the U.S.’s continued focus on maintaining global military superiority, technological edge, and readiness in an increasingly complex security environment. Future spending levels and priorities may remain contingent on political decisions, economic conditions, and global security developments.
Large budget proposals, like those for 2027, signal strategic ambition, shaped by political negotiation, fiscal constraints, and broader economic conditions. Defense priorities increasingly extend beyond traditional forces to include advanced technology, cyber capabilities, and space operations, reflecting the evolving nature of global threats.
As international security challenges continue to shift, the U.S. must balance readiness with sustainability, ensuring resources are deployed efficiently across competing priorities.