President Donald Trump called for a significant increase in U.S. military spending, proposing a budget of $1.5 trillion by 2027. This figure represents an increase of more than 50% from the $901 billion budget approved by Congress in December.

Trump announced the proposal on social media Wednesday, stating the increased spending would "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." He also indicated plans to address payouts to executives and shareholders of major U.S. defense contractors, conditioning them on accelerated armament deliveries and the construction of new manufacturing plants.

Following Trump's announcements, shares in major U.S. defense equipment manufacturers, including Lockheed Martin, Northrop Grumman, and Raytheon, experienced gains of more than 5% in extended trading in New York.

The proposed budget increase comes amid existing concerns about the sustainability of the gap between U.S. spending and income. Trump asserted that the $1.5 trillion defense budget could be "easily hit" due to revenue generated from tariffs.

Economists have previously voiced concerns about the growing national debt and the potential economic consequences of increased government spending. The Committee for a Responsible Federal Budget, a nonpartisan watchdog group, has warned about the long-term fiscal implications of rising defense expenditures without corresponding revenue increases or spending cuts in other areas.

The proposed budget now faces consideration by Congress, where it is likely to encounter debate over its feasibility and impact on other government programs. The Bipartisan Budget Act of 2019, which set spending caps for fiscal years 2020 and 2021, has expired, potentially opening the door for increased spending. However, any significant increase in defense spending would likely require bipartisan support to overcome potential opposition from lawmakers concerned about the national debt.