President Donald Trump has warned some of the nation’s most prominent defense contractors as part of his desire to increase the national military budget to $1.5 trillion by 2027, with the Pentagon supporting his efforts.
Trump wrote in a Truth Social post on Wednesday that his decision followed “long and difficult negotiations” with senators, congressmembers, secretaries and political representatives. If his wanted bigger budget became a reality, it would represent a drastic increase of roughly 50% after Congress recently passed a $900 billion defense bill for the 2026 fiscal year.
“I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars,” Trump wrote. “This will 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."
The president also connected the defense budget to the tariffs he has employed worldwide, saying he would OK with a $1 trillion budget but sees financial promise in the “tremendous income” that he claims tariffs have generated.
“That would have been unthinkable in the past (especially just one year ago during the Sleepy Joe Biden Administration, the Worst President in the History of our Country!). … We are able to easily hit the $1.5 Trillion Dollar number while, at the same time, producing an unparalleled Military Force, and having the ability to, at the same time, pay down Debt, and likewise, pay a substantial Dividend to moderate income Patriots within our Country!” the president added.
Updated projections from the Congressional Budget Office (CBO) in November 2025 found that enacted tariffs will reduce debt, including interest, by $3 trillion through Fiscal Year 2035—down from the $4 trillion the CBO projected in August. It changed a longer-term outlook, with CBO projecting $2.5 trillion of revenue rather than $3.3 trillion.
Pentagon, Defense Contractors React
Trump’s plan for a “dream military” also includes a shortened leash on some of the United States’ biggest defense contractors.
The president challenged contractors in another Truth Social post on Wednesday, writing in part: "All United State Defense Contractors, and the Defense Industry as a whole, BEWARE: While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment. This situation will no longer be allowed or tolerated!"
Defense contractor executives’ salaries, stock options and other forms of compensation “are far too high,” Trump added, saying that no executive should be allowed to make in excess of $5 million if they don’t deliver and maintain equipment or if they do not construct new, modern production plants.
"Defense contractors will no longer be allowed to leave our warfighters behind while giving themselves massive payouts from stock buybacks."
“After numerous years of failing to meet contractual obligations, under President Trump’s order, defense contractors will no longer be allowed to leave our warfighters behind while giving themselves massive payouts from stock buybacks,” chief Pentagon spokesperson Sean Parnell told Military.com. “This will give [the] Department of War the ability to meet national security objectives and ensure efficiency and accountability. Our obligation is to our warfighters, not Wall Street.”
Military.com reached out to the nation’s largest defense contractors for comment, including Lockheed Martin, General Dynamics and Northrop Grumman.
“Lockheed Martin shares President Trump’s and the Department of War’s focus on speed, accountability, and results, and will continue to invest and innovate at scale to ensure our warfighters maintain a decisive advantage and are never sent into a fair fight,” a Lockheed Martin spokesperson told Military.com.
General Dynamics, when reached by Military.com, declined to comment.
Trump Targets One Major Contractor
Trump, in a separate defense contractor-related social media post, targeted one specific company—Raytheon, a business unit of RTX Corporation.
The president said he was told by the Department of Defense that Raytheon “has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military.”
“Raytheon seems to think this is the Biden Administration, and this is ‘business as usual,’ IT’S NOT!” Trump wrote. “Either Raytheon steps up, and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with Department of War.
“Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together.”
Military.com reached out to Raytheon for comment.
