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The US Department of Defense has outlined US President Donald Trump’s proposed US$1.01 trillion national defence budget request for fiscal year 2026.
The request outlined at the Pentagon this week represents a 13.4 per cent increase from fiscal year 2025. It includes US$848.3 billion for the discretionary budget and US$113.3 billion in mandatory funding through congressional reconciliation.
The proposed budget breaks down to US$197.4 billion for the Army, US$292.2 billion for the Navy, US$301.1 billion for the Air Force, and US$170.9 billion defence-wide.
The request includes US$113 billion in mandatory reconciliation funding to address presidential priorities, such as shipbuilding, missile defence, munitions production and military personnel quality-of-life initiatives.
“This historic defence budget prioritises strengthening homeland security, deterring Chinese aggression in the Indo-Pacific (region), revitalising the defence industrial base and maintaining our commitment to being good stewards of taxpayer dollars,” said a senior defence official.
“At nearly [US]$160 billion, the FY26 budget request funds DOD readiness to a historic high to meet the planned employment of forces.
“(The refocusing of several projects) identified nearly [US]$30 billion in FY25 efficiencies and reductions.”
Allocations in the proposed budget include an initial investment of US$25 billion for America’s Golden Dome missile defence initiative, US$60 billion towards nuclear enterprise modernisation, US$3.1 billion for continued F-15EX Eagle II fighter jet production, and US$3.5 billion in funding for the Air Force’s planned F-47 Next Generation Air Dominance fighter jet platform.
Other allocations include US$2.5 million for nuclear shipyard productivity enhancements, US$6.5 billion invested in conventional and non-hypersonic munitions, and US$3.9 billion in hypersonic weapons, US$1.3 billion for industrial base supply chain improvements and US$2.5 billion for missile and munitions production expansion.
Other allocations include US$15.1 billion invested in cyber security to ensure joint, all-domain manoeuvring, as well as US$40 billion towards the Space Force from the US Air Force’s proposed budget.
The budget also includes a 3.8 per cent pay raise and a US$5 billion investment in unaccompanied housing for service members. The budget also requests US$5 billion for border security.
To offset the budget increases, there are notable reductions, such as reducing procurement of the F-35 Lightning II stealth strike fighter from 74 to 47 aircraft, as well as the US Department of Defense’s cancellation of its E-7 Wedgetail early warning and control aircraft program.
The Military Intelligence Program’s top-line budget request for fiscal year 2026 totals US$33.6 billion.
