President Donald Trump's fiscal year 2027 budget request includes $1.5 trillion in funding for the Department of War, marking a 42 percent increase over current levels.
As the proposed FY27 budget advances initiatives such as Golden Dome and drone capabilities, government and industry leaders will have an opportunity to examine these priorities more closely at upcoming events. Attend the 2026 Air and Space Summit to join experts as they discuss emerging technologies and defense strategies in support of missions across two critical domains. Book your spot now!
In a statement published Tuesday, Secretary of War Pete Hegseth said the budget proposal, which includes $756.8 billion for new capabilities and industrial base expansion, aims to expand U.S. military capability while maintaining readiness.
“This budget builds this arsenal without compromising readiness that will ensure we remain the world's premier fighting force, we protect the homeland, and we create peace through strength now and into the future,” added Hegseth, a 2026 Wash100 awardee.
What Is the Pentagon's Plan for Golden Dome?
The proposal allocates $18 billion to support the development and deployment of the Golden Dome next-generation missile defense shield, which would include space-based sensors, interceptors and layered defense capabilities.
“In FY26, we began building Golden Dome by focusing on creating the infrastructure to build situational awareness and sense threats,” Jules “Jay” Hurst, who is performing the duties of the Pentagon comptroller and chief financial officer, said Tuesday during a press briefing. “In FY27, we will expand that sensing network and invest in next generation interceptors. This investment in the security of America and Americans is an absolute game changer and its peace through strength in action.”
How Does the Proposed Budget Support Drone Dominance?
The request includes more than $74 billion for drone and counter-drone technologies, tripling FY26 spending levels.
Breaking Defense reported that the Pentagon plans to spend nearly $55 billion in FY 2027 on a new initiative called the Defense Autonomous Warfare Group, or DAWG, which will replace the Replicator program and focus on advancing drone and autonomy capabilities.
“I think of the DAWG as a pathfinder, they’re out there finding the best technology for us and working on integration,” said Hurst. “They’re with these companies, live right now, testing different systems and orchestration tools for autonomy, and they’re giving them live feedback.”
How Does the Proposed Budget Allocate Funds Across Domains & Force Modernization Priorities?
The DOW outlined funding across key defense domains, including maritime, space and cyber, along with broader modernization and personnel initiatives.
- Shipbuilding and maritime programs: $65.8 billion to fund 18 new battle force ships and shipyard modernization efforts.
- U.S. Space Force programs: More than $75 billion to support national security missions in space.
- Cyberspace capabilities: More than $20 billion to defend federal systems, critical infrastructure and supply chains while expanding cyber operations.
- Homeland security and readiness: $2.3 billion for border security efforts in coordination with the Department of Homeland Security and an additional $31.7 billion above FY26 enacted levels to support cybersecurity, ship operations, flying hours and ground readiness.
- Advanced aircraft and nuclear modernization: Funding for platforms such as the F-47 fighter and B-21 bomber, along with accelerated nuclear modernization efforts.
- Military personnel and quality of life: Pay raise for service members, housing improvements and a planned increase in total force end strength of more than 2 percent, including about 44,000 additional personnel.
- Program reductions and reinvestment: Nearly $20 billion in cuts from existing programs, with funds redirected to higher-priority defense initiatives.
