The US Department of War (DoW) has proposed a total of $1.5tn in budgetary resources for fiscal year 2027, representing a 44% rise from last year, amid the ongoing military operation in Iran.
This figure marks a $441bn increase over the previous year, alongside $151.5bn in mandatory funding provided through the Working Families Tax Cut Act (Public Law 119-21).
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Of the total, $1.1tn in base discretionary authority is allocated to the DoW, according to the 92-page Budget of the United States Government, Fiscal Year 2027, released by the White House.
An additional $350bn in mandatory funds is requested to support key administration priorities, such as boosting access to essential munitions and expanding the defence industrial base.
The 2027 budget submission builds on the $1tn defence topline enacted for 2026. It includes flexibility to support technology maturation and acquisition approaches that could open opportunities for new industry entrants.
A significant portion of the budget focuses on investments across several defence domains. Funding for the Golden Dome missile defence system seeks to advance the development of space-based sensors and interceptors, alongside kinetic and non-kinetic defeat capabilities.
The 2027 budget also requests $65.8bn to procure 34 ships, with 18 intended for battle force and 16 for non-battle force operations.
The plan initiates funding for new Trump-class battleships, next-generation frigates, and maintains or increases procurement of platforms such as amphibious vessels and Columbia– and Virginia-class submarines.
Provision is made to expand maritime auxiliary platforms, including strategic sealift and hospital vessels, replenishment tankers, and support ships. Investments further aim to increase public shipyard repair capacity and address vessel delivery delays.
Critical munitions procurement is another focal point, with funding targeted to rapidly acquire 12 munitions and increase industrial base capacity for scalable production.
The new budget outlines a dedicated Combat and Operational Medicine Programme to support warfighter health and medical preparedness.
The Department will use predictive analytics and integrated data to monitor readiness and guide decisions regarding medical force generation and deployment.
In the area of airpower, the administration emphasises the F-47 sixth-generation fighter programme.
The budget continues development and production aiming for an initial flight in 2028. Support is also increased for border security measures, enabling defence operations along the southern border with transportation, sensors, and intelligence, surveillance, and reconnaissance resources.
The budget includes higher funding for the DoW’s nuclear enterprise to support modernisation and recapitalisation of command, control, and communications systems.
There is also a focus on unmanned and counter-uncrewed systems, with investments planned to equip military combat units with drones and to support countermeasures against unmanned platforms used by competitors and non-state actors.
In AI, the budget allocates funding for scaling infrastructure and developing new capabilities, in accordance with the national AI Action Plan. Support is set for the GenAI.mil platform, aimed at expanding AI adoption throughout the military.
“The Budget restores the readiness and lethality of the force by ensuring America’s warfighters are trained, equipped, and medically ready to fight and win,” the White House statement said.
