Pentagon budget 2027: DoD targets ‘generational investment' in budget request

A THAAD interceptor is launched during a test in 2019. The programme is in line for a significant increase under the FY 2027 defence budget proposal. (US Missile Defense Agency)

The Donald Trump administration's USD1.5 trillion fiscal year (FY) 2027 defence budget request, including USD350 million in ‘mandatory' spending, is a “generational investment” intended to address industrial base and readiness challenges and advance new technologies to stay ahead of adversaries, Jules Hurst III, performing the duties of under secretary of defence (comptroller), told reporters at the Pentagon on 21 April.

‘Mandatory' spending refers to spending that could be added this fiscal year through a potential budget reconciliation process, which only requires a simple majority to pass, and can obviate a Senate filibuster if the legislation meets certain requirements.

“This 42% increase will supercharge our defence industrial base by expanding production of major weapon systems, while strengthening supply chains,” he said.

Hurst highlighted significant growth requested for the services' budgets, with the Department of the Army receiving USD252.3 billion, a 23.9% increase over FY 2026; the Department of the Navy USD377.5 billion, a 26% increase; and the Department of the Air Force USD391.1 billion, a 33.6% increase — while general Department of Defense funding totals USD183.8 billion in discretionary spending, a 22.6% increase, according to a briefing slide.

“There is also a presidential priorities category in our budget that includes investments in Golden Dome [missile defence architecture], drone dominance, artificial intelligence (AI) and data infrastructure, and the defence industrial base,” he said.

More than USD750 billion, or 52%, of the budget proposal would go towards development and procurement of combat systems, including munitions, aircraft, ground vehicles, and ships, Hurst said.