Defense Secretary Pete Hegseth is demanding a $454bn increase for 2027 military spending, totaling nearly $1.5tn, in what he calls a 'generational investment.' Adjusted for inflation, this would match or exceed US military spending at the height of World War II, according to the Center for Strategic and International Studies.
Contradictory Budget Push
In February 2025, Hegseth ordered 8% annual cuts for five years, aiming to trim $340m from the Pentagon budget. That plan evaporated, and now he seeks a 44% increase. Simultaneously, the Trump administration is pushing for emergency funding for the Iran war, creating a two-pronged campaign on Capitol Hill.
Iran War Funding
Hegseth is asking for $67bn in emergency defense funds for 2026. He disclosed a new estimate of $37.5bn for the Iran war through September 30. 'That's a little bit of a signal that the war is still probably going to be going on by September 30,' said Becca Wasser, a defense expert at the Center for New American Security.
Unobligated Funds
Last year, the Pentagon received a $156bn bump under the One Big Beautiful Bill Act, with $75bn still unobligated. Questioned in a Senate hearing, Hegseth lacked details, stating, 'I'd have to get you the exact numbers.'
Tech and Private Equity Influence
The $1.5tn budget includes $58.5bn for AI and $20bn for the office of strategic capital, a private equity arm led by former Cerberus Capital head Stephen Feinberg. The military's research chief, former Uber executive Emil Michael, made millions from investments in Elon Musk's xAI.
DEI Cuts
The administration identified $1.6bn in defense reductions related to diversity, equity, and inclusion programs, calling them 'wasteful and egregious spending.'
