Key facts
- Defense Secretary Pete Hegseth is requesting a $1.5 trillion defense budget for 2027.
- This proposed budget represents a 44% increase and would match World War II spending levels.
- The administration is also seeking separate emergency funding for the war in Iran, estimated at $37.5 billion.
- Hegseth faces scrutiny over $75 billion in previously allocated but unobligated funds.
- Significant portions of the budget are earmarked for artificial intelligence and private equity-style investments.
- The administration plans to cut $1.6 billion in spending related to diversity, equity, and inclusion programs.
Defense Secretary Pete Hegseth is pushing for a significant increase in the US defense budget, requesting nearly $1.5 trillion for 2027, a move that would match or exceed military spending during World War II. This ambitious proposal comes as the administration also seeks separate emergency funding for the ongoing war in Iran, creating a complex and potentially contentious funding strategy on Capitol Hill.
Hegseth's request represents a 44% jump in military spending. This push is occurring simultaneously with demands for emergency funds for the Iran war, which the administration insists should be funded separately from the main Pentagon budget. Hegseth is asking for $67 billion in emergency defense funds for 2026, though critics like Senator Patty Murray have questioned the allocation of funds for non-Iran war related items, such as the National Guard patrolling Washington D.C. and the southern border.
Hegseth has attributed the need for current spending levels to the 'gross negligence and neglect' of the Biden administration, deflecting blame for depleted resources and past military leaders. Adding to the complexity, the Department of Defense still has $75 billion in unobligated funds from a $156 billion budget increase received last year, with Hegseth admitting he lacked immediate details on its allocation.
The estimated cost for the Iran war is $37.5 billion through September 30, with experts suggesting this indicates the conflict is expected to continue. Unlike previous administrations that used 'overseas contingency operations' funds, the current approach mirrors the Biden administration's use of emergency supplemental requests for Ukraine. A significant departure is the administration's use of reconciliation, a legislative mechanism that bypasses the Senate filibuster.
The proposed $1.5 trillion defense budget includes substantial investments in artificial intelligence, with $58.5 billion planned for AI initiatives. The office of strategic capital, which functions as a private equity arm of the Pentagon, is also set to receive $20 billion. This office is overseen by a former employee of Cerberus Capital, a firm previously headed by Deputy Secretary of Defense Stephen Feinberg. The administration also highlighted $1.6 billion in proposed defense reductions related to diversity, equity, and inclusion programs.