Former President Donald Trump has unveiled his proposed $892.6 billion defence and national security budget for 2026, calling for a 3.8% pay raise for U.S. troops and increased investment in high-tech missiles and drones, while reducing spending on warships, fighter jets, and Navy jobs.
The budget, released on Tuesday, maintains overall defence spending at current levels but shifts funding toward Trump’s strategic priorities, including countering China in the Indo-Pacific and revitalising the domestic defence industrial base. It also boosts funding for homeland security and nuclear weapons activities under the Department of Energy.
The proposal includes a notable reduction in new military hardware purchases, including a request for only 47 F-35 fighter jets down from the 68 requested under former President Joe Biden’s final budget. It also cuts the Navy’s civilian workforce by more than 7,200 and funds only three new warships, compared to previous projections. Additional shipbuilding, including Virginia-class submarines, is expected to be covered under a separate bill, according to the Navy.
Trump’s budget steers more funds toward munitions and emerging technologies. The Air Force is set to continue investing in longer-range missiles like the Joint Air-to-Surface Standoff Missile Extended Range and the Long-Range Anti-Ship Missile. In contrast, the Army's Precision Strike Missile programme will receive fewer funds despite being viewed as the successor to the ATACMS system used in Ukraine.
Smaller drones, praised for their effectiveness and low cost in Ukraine’s battlefield, will see a boost in funding as part of the Pentagon’s broader shift toward asymmetric warfare tools.
However, the budget notably excludes most funding for Trump’s headline Golden Dome missile defence shield, which is being addressed in a separate request. The House has already passed the initial $25 billion allocation for the programme under the “One Big Beautiful Bill Act,” a sweeping $150 billion defence package currently being debated in the Senate.
While the budget reflects Trump’s defence priorities, including bolstering deterrence in Asia and modernising the U.S. military posture, it has sparked immediate debate on Capitol Hill. The House Appropriations Committee’s Defence Subcommittee has already countered the proposal by increasing the F-35 buy to 69—one more than Biden's 2025 request.
Defence spending remains a dominant force in the U.S. discretionary budget, which is also tasked with funding sectors like education, transportation, and foreign affairs. The coming weeks are likely to see intense negotiations as lawmakers deliberate over the final allocations.