The White House sent Congress today a $1.5 trillion fiscal year (FY) 2027 defense budget request, a major uptick from the 2026 request, fulfilling its long-standing pledge to push military spending past the trillion-dollar mark.
The FY 2027 budget request represents a $445 billion, or 44%, increase over the previous year’s funding level. Of the total, $1.1 trillion is designated for base discretionary budget authority specifically for the Department of Defense (DOD) – which the Trump administration rebranded as the Department of War.
Additionally, the budget requests $350 billion in mandatory reconciliation funds. The funding is intended to protect key priorities such as maturing technology for delivery and broadening acquisition approaches to include new entrants to defense capabilities.
Budget documents did not provide exact details on funding allocation, but they did list out several funding priorities for the administration.
Pay raise for troops
Similar to last year’s budget request, the proposal includes a pay raise for military personnel. Troops ranked E-5 and below would see a 7% increase, while those ranked E-6 to O-3 would receive a 6% raise. Military personnel ranked O-4 and above would receive a 5% increase.
No mention was made of a pay raise for DOD’s civilian workforce.
Building the Golden Dome
The FY 2027 budget also commits additional resources to President Donald Trump’s Golden Dome missile defense system.
The Golden Dome program, which aims to protect the U.S. from hypersonic and advanced missile threats, received $25 billion from the reconciliation bill passed last year. While no exact funding amount for 2027 was disclosed, the administration stated that the budget “fully funds the project.”
Originally estimated to cost $175 billion, the program is now expected to reach $185 billion, with completion slated for 2035 – seven years later than initially projected. According to budget documents, the funds will support the development of next-generation missile defense sensors, interceptors, and technologies for a layered homeland defense system.
Other space-based investments, including launch infrastructure and classified programs, will also be prioritized.
Drones, drones, drones
Another funding priority for this administration is the U.S. military’s drone capabilities. As part of a broader administration strategy – outlined in two June 6, 2025, executive orders, Unleashing American Drone Dominance and Restoring American Airspace Sovereignty – the administration is proposing “unprecedented investments in both unmanned systems and counter-unmanned systems.”
“This funding would arm America’s military’s combat units with drones while also providing protection against the proliferation of inexpensive and proliferated unmanned systems by near-peer competitors, rogue states, and non-state actors,” the document reads.
According to the administration, the fund would facilitate rapid technological maturation and enable innovative contracting approaches, fostering opportunities for new entrants to the defense sector.
Advancing AI
The administration’s budget request also outlines investments to scale the U.S. military’s artificial intelligence (AI) capabilities. This includes funding for the development of new AI technologies, the expansion of American AI infrastructure, and continued support for the military’s GenAI.mil platform.
Reforming acquisition
The FY 2027 budget also proposes a shift in defense spending priorities, realigning funding from the maintenance of aging, legacy systems toward investment in cutting-edge capabilities necessary for modern warfare. By redirecting resources to research, development, and the procurement of next-generation equipment, the administration aims to foster innovation and expand the defense industrial base.