More than 300 U.S. service members from all branches of service came together to test their military skills and physical prowess during the 2026 German Armed Forces Proficiency Badge competition at Ramstein Air Base, Germany, from Feb. 23-27, 2026. The Pentagon spending plan for fiscal 2027 calls for raises of 5% to 7% for troops. (Kirk Frady/U.S. Army)
ARLINGTON, Va. — The Pentagon formally unveiled its $1.5 trillion budget for fiscal 2027 on Tuesday morning, calling for raises of 5% to 7% for troops, an increase of 44,000 personnel in the overall force and spending $750 billion on defense capabilities and weapons systems.
“By having a budget of this size, we were not forced to make that trade between investment in the capabilities we need and the readiness of our force,” Space Force Lt. Gen. Steven P. Whitney, director for force structure, resources and assessment, said during a news conference at the Pentagon.
The budget request asks Congress to approve $1.15 trillion through its annual appropriations process and to enact the remaining $350 billion through a legislative tactic known as reconciliation, which allows measures to pass with a simple majority in the Senate.
Republicans used reconciliation last year to give the Defense Department $150 billion on top of its base budget.
“We wouldn’t ask for the money if we didn’t want it,” said Jules “Jay” Hurst, performing the duties of under secretary of defense (Comptroller). “So we’ll go back to the White House and we’ll work with Congress to come [up] with a new strategy, if the White House and Congress decide [on] reconciliation.”
The Trump administration is proposing a 42% increase in military spending compared to 2026. The proposal, first unveiled by the White House this month, would offset the increased military spending with an approximate 10% cut in nonmilitary programs.
The budget funds a pay raise of 7% for all military personnel ranked E-5 and below; 6% for E-6 to O-3; and 5% for O-4 and above, according to the document.
The funding proposes spending $65.8 billion on shipbuilding — an investment meant to establish President Donald Trump’s “Golden Fleet” as waters around the world become more contested.
The 41-ship plan calls for the construction of 18 battle-force ships and 16 non-battle force Navy ships, five vessels for the Coast Guard and Army, a new scientific research ship and a National Park service ferry. The Navy was allocated $27.2 billion to build 17 ships in fiscal 2026.
The senior defense official said the Army’s budget would increase by 23.9%, the Navy by 24.3% and the Air Force by 33.6%. The official did not provide the dollar amounts for each of the services.
The Army’s budget is $253.2 billion, the Navy’s is $377.5 billion and the Air Force’s is $391.1 billion.
“This budget represents the largest investment in drone warfare and space capabilities ever, the largest shipbuilding requests since 1962,” said a senior defense official, who spoke on the condition of anonymity ahead of the budget release.
The budget also includes $245.3 billion for the president’s priorities such as the defense industrial base, Golden Dome, drone dominance and munitions.
The 118-page budget also calls for spending $57 billion on U.S. military bases and other facilities, with requesting funds for “critical updates” to housing that Defense Secretary Pete Hegseth’s barracks task force established.
The budget does not specifically address the war with Iran, the defense official said, and did not provide details clarifying if a supplemental spending package in Congress would be for funding the Iran war.
“This budget was formulated, honestly, before we went into conflict with Iran,” Hurst said. “The overlap you’ll see is the request for munitions, which is something we always need to increase our magazine debt. But outside of that, there aren’t operational costs in there.”
Hegseth confirmed on March 19 that the Pentagon asked the White House for funds but did not disclose the amount, which has been reported as $200 billion.
“It takes money to kill bad guys,” Hegseth said at the time. “So, we’re going back to Congress and our folks there to ensure that we’re properly funded for what’s been done, for what we may have to do in the future.”
Other priorities in the budget include:
$2.3 billion in homeland defense initiatives. This includes $1.47 billion in operation along the U.S.-Mexico border and $605 million for National Guard mobilized to Washington.
Over $100 billion in the defense industrial base investments.
$102 billion to increase American airpower with more F-35s and to develop sixth-generation systems.
$31.1 billion to expand production capacity and build land power missile stockpiles including Patriot, THAAD, precision strike and mid-range capability.
$190 billion for core readiness such as aviation training and flight hours and large scale combat operations training.
