President Donald Trump on Wednesday proposed increasing U.S. defense spending to $1.5 trillion in 2027, citing what he described as “troubled and dangerous times.”
The proposed increase follows a recent U.S. military operation targeting Venezuelan leader Nicolás Maduro, whom Trump ordered captured to face drug trafficking charges in the United States. U.S. military forces continue activity in the Caribbean Sea. The current 2026 defense budget is set at $901 billion.
In recent days, Trump also said he was considering acquiring Greenland, a territory of Denmark, for national security reasons and indicated openness to military operations in Colombia. Secretary of State Marco Rubio said Wednesday that Cuba, a longtime U.S. adversary, “is in trouble.”
“This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Trump wrote on Truth Social. He said revenue from global tariffs has allowed for higher military spending.
Also Wednesday, Trump warned Raytheon, one of the largest U.S. defense contractors, that its government contracts could be in jeopardy if it did not redirect profits from stock buybacks into weapons production.
“Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War,” Trump wrote on social media. “Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together.”
Trump has criticized defense companies in recent months for delays in delivering key weaponry while maintaining stock buybacks and executive compensation.
Following Trump’s comments, shares of defense firms fell. Northrop Grumman declined 5.5%, Lockheed Martin dropped 4.8%, and RTX Corp., Raytheon’s parent company, fell 2.5%.
