Hegseth pushes Trump’s $1.5 trillion defense budget for 2027

Defense Secretary Pete Hegseth defended the proposed $1.5 trillion 2027 defense budget before Senate and House lawmakers. He stated the ceasefire with Iran remains in effect as lawmakers raised concerns about the war's rising cost and its impact on military readiness. A Democrat warned that while tactical gains have been achieved, the administration could be on the verge of a strategic loss. Pentagon officials told Congress the Iran war cost has climbed to nearly $29 billion (up from about $25 billion two weeks earlier), with roughly $24 billion for replacing munitions and repairing equipment and the remainder covering operational costs for deployed forces; costs to repair or rebuild damaged US sites in the region were not included. Hegseth rejected suggestions that the conflict is straining US weapons supplies and acknowledged that the administration is moving to increase weapons production to support current operations and future missions. The administration's proposed 2027 budget includes $750 billion for the 'Golden Dome' missile-defense system, $102 billion for aircraft procurement and R&D, about $75 billion for drone and counter-drone technologies, and $65 billion to build 18 Navy warships and 16 support ships; funding would come from about $1.1 trillion via regular appropriations and about $350 billion through budget reconciliation. The hearings are set against the backdrop of Iran’s effective closure of the Strait of Hormuz, a corridor through which about 20% of the world’s oil typically flows.

In January 2026, Trump said the US military budget for 2027 should be $1.5 trillion rather than $1 trillion, arguing the increase would help build a 'Dream Military' and would be funded by tariffs enacted since his return to office.