US President Donald Trump on Wednesday announced plans to seek a record $1.5 trillion defence budget for fiscal year 2027, saying the increase was needed to strengthen America’s military, expand domestic manufacturing and create jobs.
Speaking at the Pennsylvania Defense and Innovation Summit in Carlisle, Trump said his administration had already approved a record $1 trillion for the Pentagon and intended to substantially raise military spending next year.
“We’ve invested a record $1 trillion in the United States military, and next year… we’re going up to $1.5 trillion. We need it,” Trump said.
He argued that the spending should be viewed as an investment in the US economy because defence equipment would be manufactured domestically.
“It’s all made in the USA, so it’s not fully a cost… it’s called jobs,” he said.
Trump reiterated that rebuilding the armed forces had been a priority throughout his presidency.
“I built the military in my first term, and I used it in my second term,” he said.
The remarks came as Senator Dave McCormick announced nearly $10 billion in defence-related investments in Pennsylvania following the two-day summit, including major shipbuilding, military manufacturing and technology projects expected to generate thousands of jobs.
Among the largest announcements were a $2.5 billion investment by Rhodes Industries and General Dynamics Electric Boat to support US Navy submarine construction in Philadelphia, expected to create about 1,350 jobs through 2035. South Korea’s Hanwha Group also secured $1.5 billion in new US government ship orders, while JPMorgan Chase announced a $25 million investment to strengthen Philadelphia’s maritime sector.
Other projects included a $2.3 billion Army depot modernisation programme, new military truck production for Mack Defense, robotics manufacturing in Pittsburgh and a NASA-linked investment involving Astrobotic.
Trump also defended recent US military operations abroad, referring to the January 2026 operation in Venezuela that resulted in the capture of President Nicolás Maduro.
“Venezuela… was actually 48 minutes… and we’ve paid for the cost of that war 50 times over already,” he claimed.
The president’s comments came amid continuing tensions with Iran. Asked whether he had given Tehran a deadline before authorising strikes on civilian infrastructure, Trump declined to specify a timeline but issued a warning.
“I don’t like giving deadlines, but they pretty much know. They know the story. They better behave,” he said.
His remarks followed an interview with Fox News on Tuesday in which Trump warned that the United States could target Iranian power plants and bridges if Tehran failed to return to negotiations.
The administration has said its defence strategy is centred on protecting the US homeland and deterring China, with future spending expected to prioritise naval and air power, strategic nuclear modernisation and military capabilities in the Indo-Pacific and the Western Hemisphere.
U.S. discretionary spending on national defense, including atomic energy activities, will rise by more than 17 percent in fiscal year 2026 to $1.05 trillion after Congress passed appropriations acts funding most of the government.
As part of a 2026 U.S. national defense budget that now tops $1 trillion, the Navy plans to spend $2 billion this fiscal year on the nuclear-capable, sea-launched cruise missile, up from $150 million last year. The B-21 bomber program will receive $10.1 billion this year, a significant increase from last year’s $5.3 billion enacted budget.