WASHINGTON — President Trump is asking Congress to hike annual military spending by 66% to build a “Dream Military” — while demanding that arms contractors cap CEO salaries and halt investor dividends.
Trump in December signed legislation with a record $901 billion in military spending for fiscal 2026 — which ends Sept. 30 — but said Wednesday he wants an additional $599 billion in fiscal 2027.
The request must pass the Republican-held House and Senate and was immediately cheered on by a number of prominent defense hawks.
It may generate calls for cuts elsewhere following last year’s $2.2 trillion increase in the national debt, which now stands at $38.4 trillion.
“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 Dollars, but rather $1.5 Trillion Dollars,” Trump wrote on Truth Social.
“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 said tariff revenue inspired him to make the larger proposal, which would likely boost his Golden Dome missile defense project and his Golden Fleet naval plan featuring recently announced “Trump-class” battleships.
“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 Dollar,” he wrote.
“[W]e are able to easily hit the $1.5 Trillion Dollar number while, at the same time, producing an unparalleled Military Force, and having the ability to, at the same time, pay down Debt, and likewise, pay a substantial Dividend to moderate income Patriots within our Country!”
The announcement sent military contractor stocks soaring, with Northrop Grumman, Lockheed Martin and General Dynamics all notching significant jumps Wednesday afternoon and Thursday morning.
Some prominent Republicans in Congress said they would support Trump’s request.
House Appropriations Committee Chairman Tom Cole (R-Okla.) told Politico defense spending “needs to go up,” and Rep. Don Bacon (R-Neb.), a frequent thorn in Trump’s side, said it was a “good news story.”
Democrats can use the legislation, however, as a point of leverage to constrain Trump’s foreign policy, including his use of the military to bomb alleged drug boats in the Caribbean Sea and his threats to use troops to seize Greenland from Denmark.
Fiscal conservatives in the past included military spending as a target for cost cuts, pointing to alleged waste including $10,000 toilet seat covers.
The $901 billion annual appropriation that Trump signed last month was supplemented by $150 billion spread over five years in the One Big Beautiful Bill Act.
‘Executive Pay Packages in the Defense Industry are exorbitant’
Trump paired his request for record military spending with an equally unprecedented attack on rich executives leading America’s weapons manufacturers.
The president warned companies to stop issuing dividends to investors and to cap executive pay at $5 million — and singled out Raytheon, whose CEO Christopher Calio earned more than $21 million in 2024, for being “the slowest” to fill orders.
“All United State Defense Contractors, and the Defense Industry as a whole, BEWARE: While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment,” Trump wrote in a post on Truth Social.
“This situation will no longer be allowed or tolerated!”
Trump did not name any particular company or product line in his lengthy initial statement — before blasting Raytheon, which makes a wide range of materiel including Tomahawk missiles, in a second post.
“I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military,” Trump wrote in the second post.
“Raytheon seems to think this is the Biden Administration, and this is ‘business as usual,’ IT’S NOT! 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,” he added.
“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. Our Country comes FIRST, and they’re going to have to learn that, the hard way!”
Raytheon did not immediately respond to The Post’s request for comment.
In his earlier post, Trump called for arms manufacturers to rein in executive pay.
“Executive Pay Packages in the Defense Industry are exorbitant and unjustifiable given how slowly these Companies are delivering vital Equipment to our Military, and our Allies,” the president wrote.
“Salaries, Stock Options, and every other form of Compensation are far too high for these Executives. Defense Companies are not producing our Great Military Equipment rapidly enough and, once produced, not maintaining it properly or quickly. From this moment forward, these Executives must build NEW and MODERN Production Plants, both for delivering and maintaining this important Equipment, and for building the latest Models of future Military Equipment. Until they do so, no Executive should be allowed to make in excess of $5 Million Dollars which, as high as it sounds, is a mere fraction of what they are making now.”
