President Donald Trump has called for US military spending to jump to $1.5 trillion (£1.1 trillion) by 2027, citing what he described as “these very troubled and dangerous times.”
The proposed figure would mark an increase of more than 50% compared with this year’s $901bn defence budget, which Congress approved in December.
“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,” Trump wrote on social media on Wednesday.
In a series of separate posts, the president also warned major US defence contractors that payouts to executives and shareholders would face restrictions unless companies move faster on weapons deliveries and invest in new manufacturing plants.
Following Trump’s comments, shares in major US defence firms Lockheed Martin, Northrop Grumman and Raytheon climbed by more than 5% in extended trading in New York.
Economists have previously cautioned that the gap between US government spending and income has reached unsustainable levels.
Trump, however, argued that Washington could “easily hit” the $1.5tn defence target thanks to revenue generated by tariffs.
The president has consistently pushed for higher defence spending by both the US and its allies since his first term in office.
In another post on Wednesday, Trump said military equipment is not being produced quickly enough and urged defence companies to build new, modern factories.
He accused arms manufacturers of prioritising “massive” shareholder payouts and stock buybacks instead of investing in production, while also taking aim at what he called “exorbitant” executive pay.
“No Executive should be allowed to make in excess of $5 Million Dollars which, as high as it sounds, is a mere fraction of what they are making now,” Trump said.
In a separate message, Trump singled out Raytheon, calling it the “least responsive” defence contractor and the slowest to increase production.
“Either Raytheon steps up and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with the Department of War,” he wrote.
The BBC has contacted Raytheon for comment.
Trump’s push for sharply higher defence spending comes as global geopolitical tensions continue to rise.
On Wednesday, the US military captured a Russian-flagged oil tanker suspected of violating US sanctions.
This followed the weekend operation in which US forces seized Venezuelan leader Nicolás Maduro and transported him to the United States to face drug trafficking charges.
In December, China conducted military drills around Taiwan that simulated the seizure and blockade of key areas of the island, warning against what it called “separatist forces.”
Taiwan’s efforts to ramp up its own defence spending this year have also angered Beijing, which claims the self-governed island as part of its territory.
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