The Department of Defense’s (DOD) fiscal year (FY) 2027 budget proposal would send U.S. military spending soaring to $1.45 trillion – $1.1 trillion in discretionary funding and $350 billion in reconciliation funding – fueling major investments in missile defense, autonomous systems, cyber capabilities, and space, as part of a broader push to modernize the force.
Under the Trump administration, the DOD rebranded as the Department of War.
Those priorities come into clearer view in the detailed figures, which budget documents show are concentrated in technology-focused areas tied to deterrence, homeland defense, and maintaining an operational edge across domains.
Notable tech program investments
One notable allocation is $17.9 billion for the “Golden Dome for America” initiative, focused on advancing next-generation missile defense capabilities, including space-based sensors, interceptors, and systems designed to counter advanced missile threats.
The budget also allocates $53.6 billion to the Drone Dominance initiative, including $39.2 billion in multi-year investments for autonomous systems procurement, domestic production capacity, and advanced technologies. These efforts align with a broader $54 billion investment in autonomous and remotely operated systems across air, land, and maritime domains.
Additionally, $20.6 billion is designated for counter-unmanned aerial systems (UAS), including $14.4 billion tied to the Drone Dominance initiative. These funds aim to address the growing threat posed by drones through coordinated efforts led by Joint Interagency Task Force 401.
Cyber capabilities receive $20.5 billion to defend against advanced persistent threats and support the department’s transition to a zero trust cybersecurity architecture.
Artificial intelligence (AI) and joint command and control capabilities account for $58.5 billion, including $46 billion for a multi-year effort to build a sovereign AI arsenal. Investments also support systems such as the Maven Smart System and Joint Fires Network, advancing Combined Joint All-Domain Command and Control.
Science and technology funding totals $25.7 billion, focusing on hypersonic defense, advanced battery development, and nuclear energy solutions. The budget also includes $956 million for the Defense Innovation Unit and $2.6 billion for the Strategic Capabilities Office.
An additional $1.7 billion is allocated for audit-related activities as the department works toward achieving a clean audit by Dec. 31, 2028.
Military Pay Raise
The FY 2027 budget request includes a targeted increase in military basic pay, with a 7% raise for junior enlisted personnel in grades E1 through E5, a 6% raise for senior enlisted personnel and junior officers in grades E6 through O3, and a 5% raise for officers in grades O4 through O10.
The tiered approach prioritizes compensation for lower and mid-grade service members, aiming to improve recruitment, retention, and readiness.
The proposal does not include a specified pay raise for civilian personnel. In FY2026, military service members received a 3.8% pay increase, while civilian employees received a 1% adjustment.
Army
The Army’s FY 2027 budget request totals $252.8 billion – an increase from FY2026 levels at $204.9 billion – with a notable emphasis on unmanned systems as part of its broader modernization push.
Modernization-related funding comes to $39.9 billion, with a clear focus on UAS and counter-UAS capabilities, including investments in commercially derived drone systems. The request also includes $1.9 billion for counter-small UAS systems and nearly $1 billion in additional counter-UAS procurement.
The service’s procurement budget also includes $2.9 billion for Next Generation Command and Control to modernize digital infrastructure.
While overall funding increases, research, development, test, and evaluation accounts show a mixed shift, with both targeted increases and reductions. The service plans to allocate $18.7 billion in this area, but science and technology funding notably declines to $2.9 billion from about $4 billion the previous year, signaling a pullback from early-stage research.
Cyber investments across the service would be roughly $1 billion.
Navy
The Department of the Navy’s FY 2027 budget totals $377.5 billion, including $338.7 billion in discretionary funding and $38.8 billion in reconciliation funds, an increase of $73.9 billion over FY 2026.
The services’ largest funding allocation falls under procurement accounts, totaling $150 billion, underscoring the administration’s intent to grow the naval fleet. According to budget documents, this funding supports the “Golden Fleet” initiative, which is aimed at restoring maritime dominance, expanding industrial capacity, and integrating advanced technologies.
Research and development efforts would receive $36.2 billion to support next-generation naval systems and emerging technologies critical to future maritime operations.
Air Force and Space Force
The Department of the Air Force’s FY 2027 budget – which encompasses the Air Force and the Space Force – totals $338.8 billion, a $92.5 billion increase over FY 2026, reflecting a focus on air and space superiority and nuclear modernization.
The Air Force budget totals $267.7 billion, with $57.6 billion dedicated to research and development. Key investments in this area include $4.3 billion for enterprise IT to replace and update aging equipment and IT infrastructure. The budget also allocates $1.4 billion for Air Base Air Defense, which detects incoming missiles with the Army Long-Range Persistent Surveillance System and a separate tasking system to defeat them.
The Air Force also wants $85.3 million for research, development, test, and evaluation to develop new base defense technology, up from $69.7 million in FY 2026.
The Space Force budget totals $71.1 billion, representing a major $39.5 billion increase over FY 2026. Research and development accounts for the largest funding area at $40.7 billion, supporting efforts to build a more resilient and responsive space architecture.
The budget also includes $21.6 billion for space control capabilities, $30.7 billion for global mission operations, and $7.8 billion for space access.
The proposal also allocates $14.8 billion for enterprise-level investments, including infrastructure, testing, and workforce readiness, underscoring the growing importance of the space domain in national defense strategy.