F-35, B-21 & advanced drones: Trump’s $1.5 trillion defence budget prioritises $750 billion for ships, jets and Golden Dome

The Pentagon on Tuesday outlined US President Donald Trump’s defence budget request for fiscal year 2027, placing total resources at $1.5 trillion, which is ‌by far the largest year-over-year increase in defense spending in the post-World War Two era. The proposal builds on FY 2026, which reached a historic $1 trillion defence topline through a mix of discretionary and mandatory funding.

For FY 2027, the plan includes $1.15 trillion in discretionary spending, a 28 per cent increase, and $350 billion in mandatory funding. This represents a 44 per cent rise for the Department of War. US officials told Reuters the scale of the budget exceeds the Reagan-era buildup and approaches levels seen before World War II, citing global security pressures and the need to restore military readiness and lethality.

A key feature of the budget is $65.8 billion allocated to shipbuilding, funding 18 battle force ships and 16 non-battle force ships made by General Dynamics and Huntington ​Ingalls Industries. The Pentagon said the expansion is necessary as global waters become increasingly contested, with a focus on strengthening maritime awareness and deterrence.

The programme also includes the creation of what is called Trump’s ‘Golden Fleet’, which will receive initial funding for a Trump-class battleship and next-generation frigates, the largest shipbuilding request since 1962, according to ​officials quoted by Reuters. Alongside this, the plan aims to increase public shipyard capacity and improve production speed and efficiency across the naval industrial base. A larger portion of defence resources is also directed towards ships, jets and the Golden Dome missile defence initiative.

Last year, Trump had initially requested a national defence budget of $892.6 billion, before supplementing it with an additional $150 billion through a separate funding request. This pushed total defence spending past the $1 trillion mark for the first time in history.

The budget includes pay increases for military personnel, with 7 per cent for ranks E-5 and below, 6 per cent for E-6 to O-3, and 5 per cent for O-4 and above. Officials said the rise is significantly above standard annual adjustments and is designed to support recruitment and retention. The proposal also introduces a ‘presidential priorities’ category covering missile defence systems, drone capability, artificial intelligence, data infrastructure, and the defence industrial base.

Officials quoted by Reuters said the new budget increases Lockheed Martin F-35 procurement to 85 aircraft annually and allocates $102 billion for aircraft procurement and research and development, marking a 26 per cent rise over last year. Development of next-generation platforms, including Boeing’s F-47 fighter jet, is a priority, alongside $6.1 billion for Northrop Grumman’s B-21 bomber. The plan makes drones central, calling it the largest US investment in autonomous warfare and counter-drone systems. It requests $53.6 billion for autonomous drone platforms and logistics support, plus $21 billion for munitions, counter-drone defenses, and advanced systems. The Defense Autonomous Warfare Group grows from $225 million to about $54 billion, focusing on existing technologies and absorbing the Replicator initiative.

Additionally, the official fact sheet said: ‘The Budget continues to eliminate millions of dollars in wasteful and egregious spending related to Diversity, Equity, and Inclusion and other ‘woke’ programs, sustaining the more than $1.6 billion in reductions that the Administration has already identified.’