Trump Seeks $1.5T Defense Budget, Funds 85 Lockheed F-35 Jets
President Trump's 2027 budget proposal requests $1.5 trillion for defense, up from $1 trillion in fiscal 2026, and earmarks $65.8 billion for shipbuilding and 85 F-35 jets built by Lockheed Martin. It also includes 7% pay raises for enlisted troops, 5% for officers, and $73 billion in non-defense cuts.
1. Budget Proposal Overview
The 2027 discretionary budget proposal totals $2.2 trillion, marking a large year-over-year increase driven by a $1.5 trillion defense allocation. This request surpasses the $1 trillion defense funding sought for fiscal 2026, reflecting a focus on military readiness.
2. Defense Spending Breakdown
Defense spending includes $1.1 trillion in base discretionary funding for the Department of Defense, $350 billion in mandatory war-related costs, $65.8 billion for shipbuilding and procurement of 85 F-35 fighter jets produced by Lockheed Martin. The plan also proposes 7% raises for enlisted personnel and 5% increases for officers.
3. Impact on Lockheed Martin
Lockheed Martin stands to benefit significantly from the 85-jet F-35 contract, potentially adding billions in revenue over the coming fiscal year and underpinning production line stability. The shipbuilding funds may also indirectly support the company's marine systems and naval integration divisions.
4. Non-Defense Cuts and Political Outlook
Non-defense discretionary programs face a 10% reduction, cutting approximately $73 billion and setting up contentious budget negotiations in Congress. The absence of long-term deficit projections and cuts to domestic agencies could fuel partisan debates ahead of midterm elections.