FY27 Budget Release

Check back for updates: More details on the FY27 budget are expected as additional program information and justification documents are released.

Top Defense Priorities

Golden Dome Missile Defense

Nearly all of the $17.5B for the Golden Dome system funded via reconciliation, with ~$400M in the base request

Shipbuilding Expansion

$65.8B to procure 18 battle force ships and 16 non-battle force vessels, part of a broader push to fund 123 ships and expand beyond traditional prime contractors

F-35 Procurement Surge

85 F-35s requested (38 A, 10 B, 37 C) — up from 47 in FY-26 — with 53 funded via reconciliation as Block 4 upgrades come online

F-47 NGAD

Continued robust funding for the F-47 Next Generation Air Dominance platform

Munitions & Industrial Base

Funds all critical munitions framework deals; focused on expanding production capacity and private-sector capital investment

Drones & Emerging Tech

Targeted investments in drones, critical mineral supply chains, AI, and autonomous systems

Military Compensation

Tiered pay raises of 5%–7% with additional investments in barracks, facility sustainment, and medical readiness

Shift to Modernization

$760B total across Procurement and RDT&E — $260B base procurement, $220B base RDT&E, plus $280B via reconciliation

Key Takeaways

Historic Scale: The FY-27 defense budget request totals $1.5 trillion — a 44% increase over current levels, with a stated goal of shifting the force from sustainment to industrial base expansion and new capability delivery.
Modernization Investment: Combined procurement and RDT&E would reach $760 billion, split between a ~$260B base procurement account and an additional ~$280B sought through reconciliation.
Major Program Investments: Shipbuilding ($65.8B for 34 vessels), F-35 (85 aircraft, nearly double FY-26's 47), Golden Dome missile defense (~$17.5B), and munitions industrial base expansion are all prominent features.
Industrial Base Emphasis: The budget explicitly targets production capacity — munitions "framework" deals, shipbuilding beyond traditional primes, and investment in drones, critical minerals, AI, and autonomous systems.
Funding Structure: The request pairs a $1.15T discretionary base with $350B in mandatory spending via a second reconciliation bill.
Pentagon Rollout April 21: Full justification documents and public briefings are expected for April 21, which will provide program-level detail relevant to portfolio planning.