Outgoing U.S. Defense Secretary Lloyd Austin has recommended increasing the 2026 defense budget by $50 billion, potentially surpassing $1 trillion in the coming years, Bloomberg News reported.
In a Nov. 27 letter to the Office of Management and Budget, Austin proposed a five-year defense plan starting at $926.5 billion in fiscal 2026, up from a projected $876.8 billion. The Pentagon and OMB have not commented on the recommendation.
Austin emphasized the need for “real growth” above inflation and sustained investments from 2026 to 2030 to meet strategic demands. The proposal includes $972.8 billion for 2027 and over $1 trillion annually from 2028 through 2030. The suggested funding excludes aid to Israel and Ukraine, focusing solely on Pentagon priorities.
President Joe Biden’s 2025 defense budget saw just a 1% increase, constrained by a 2023 budget deal limiting growth and delaying weapons stock replenishment impacted by the Ukraine and Israel conflicts.
It remains unclear whether President-elect Donald Trump will adopt Austin’s plan. Trump recently called on NATO allies to allocate 5% of GDP to defense, a significant rise from the current 2% target.
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