OFFICE OF THE UNDER SECRETARY OF WAR COMPTROLLER/CHIEF FINANCIAL OFFICER March/April 2026 Budget Overview UNITED STATES DEPARTMENT OF WAR FISCAL YEAR 2027 BUDGET SUBMISSION The FY27 Budget: Solidifying Peace Through Strength Unleashing the Arsenal of Freedom To meet the complex and increasingly dangerous threat environment, the FY27 budget provides a ~42% increase that will ensure America's military dominance for decades to come, by: Supercharging America's Industrial Base: - 46% growth in ship procurement and 26% growth in air power funding - Reshoring critical minerals - Prioritizing energy independence and emerging technologies Securing America's Military Advantage: - Delivering nearly $18B to operationalize Golden Dome - Delivering over $74B investment in drone dominance and counter drone technologies - Making the largest investment in space capabilities in American history Ensuring America's Military Readiness: - Unleashing next generation capabilities like the F-47, B-21, and the Golden Fleet - Modernizing the nuclear triad to bolster American deterrence - Restoring the barracks of our warfighters to top condition "I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars." - President Donald J. Trump, January 7, 2026 The FY27 Budget: Solidifying Peace Through Strength Unleashing the Arsenal of Freedom PRESIDENT'S BUDGET - Department of the Army: 17% | $252.3B (+23.9%) - Department of the Navy: 26% | $377.5B (+24.3%) - Department of the Air Force: 27% | $391.1B (+33.6%) - Defense Wide: 13% | $183.8B (+22.6%) (Discretionary only) - Presidential Priorities*: 17% | $245.3B *Part of the Department Wide total mandatory budget request of $350 billion. Includes investments in: - The Defense Industrial Base - Golden Dome - Next-Generation Tech - Drone Dominance - Critical Minerals - Munitions - Infrastructure Historic Investments Unleashing the Arsenal of Freedom Key Takeaway: Over half ($756.8B) of the DoW's budget is allocated to investments in capabilities, which will create hundreds of thousands of jobs. - More Jobs - More Capacity - More Strength Investment in Capabilities* (Percentage of topline budget): - Reagan '84: 43.2% - Biden '24: 39.5% - Trump '27: 52.2% *Investments represent RDT&E and Procurement as a percentage of the topline budget. Making an even greater investment in new capabilities, platforms, hardware, and munitions than the historic Reagan build-up. Historic Investments Unleashing the Arsenal of Freedom Warfighter Focused Key Takeaway: Focused investments in readiness and quality of life, but cuts to unnecessary spending. - Cuts over $13B in government contracts and invests that money back in the warfighter. - Ensures our Service members are taken care of, and our units are prepared. Operation and Maintenance* (Percentage of topline budget): - Reagan '84: 27.6% - Biden '24: 38.4% - Trump '27: 29.7% *O&M as a percentage of the topline. Focused investment in core readiness and quality of life for the warfighter. Supercharging America's Defense Industrial Base SUPERCHARGING AMERICA'S DIB Rebuilding and expanding our Defense Industrial Base (DIB) to deliver the innovation and lethality our warfighters need at breakneck speed. - Office of Strategic Capital (OSC) | UNLOCKING CREDIT: $20.2B - Defense Production Act (DPA) | UNLOCKING CAPACITY: $30.4B - Industrial Base Analysis & Sustainment (IBAS) | ATTRACTING NEW ENTRIES: $41.8B - Munitions Acceleration Council (MAC) | CLEAR DEMAND SIGNAL: $52.9B INNOVATION: - Business Operators for National Defense (BOND) Program: $88M - Economic Defense Unit (EDU): $189M Ensuring America's Military Readiness GROWING THE FORCE During the previous Administration, end strength fell by 2.6% across the Joint Force. DoW has also experienced empty units and shortfalls in manning capacity. To make up for this shortfall, and to fulfill new capacity requirements from increased investment, DoW is now growing the Force by 2.2% or 44,500. End Strength Increases: - Army: +18,300 - Navy: +11,000 - Marine Corps: +2,500 - Air Force: +9,900 - Space Force: +2,800 Ensuring America's Military Readiness Defending the Homeland Securing the Border: - The Department of War and the Department of Homeland Security regained operational control of the Southern border and have now achieved the most secure border in recorded history. - $2.3B ensures that defending America's homeland continues to be the primary mission of the Department of War: - $1.47B for border-related operational requirements in the National Defense Areas along the U.S. southern border - $605M to safeguarding our Nation's Capital with National Guard mobilizations - $216M for the National Guard Reaction Force to respond to incidents requiring defense support of civil authorities Southwest Border Encounters chart showing dramatic reduction in encounters from over 100,000 to low baseline levels. Maintaining the most secure southwest border in recorded history. Securing America's Military Advantage Building America's Golden Dome - $17.9B in FY27 to advance key defense technologies, building on FY26's historic down-payment: - Space-based sensors and interceptors - Hypersonic defense - Next-gen ICBM defense and radars - Directed energy - Golden Dome's layered defense of the homeland will protect Americans by deterring and defeating advanced missile threats. - Strikes a deliberate balance between disruptive, next-generation technologies while strengthening foundational capabilities. Protecting the homeland, first and foremost. Securing America's Military Advantage Drone Dominance and Counter Drone Technologies - $53.6B to unleash drone dominance and protect American service members from adversary unmanned systems. This multi-year investment is focused in 5 areas: - Contested Logistics, Collaborative Autonomy, Force Generation, Counter Autonomous Systems, and Asset Purchases/Industrial Demand Signal. - $20.6B in other autonomous and remotely operated systems to achieve technological and operational dominance in the future fight. - Focus includes one-way attack, counter small UAS, and major programs to include Collaborative Combat Aircraft and MQ-25 refueler/ISR platform. Harnessing the biggest battlefield innovation in a generation. Securing America's Military Advantage Space & Cyber - Over $75B to ensure American space superiority, including: - National Security and Space Development launches, missile warning and tracking, GPS infrastructure, missile defeat and defense, SATCOM, Space-Based moving target indication, Space Data Network, classified programs, and more to secure America's vital national and economic security interests in, from, and to space. - Leveraging commercial innovation to ensure the U.S. can access and operate in space freely, while denying adversaries the ability to threaten U.S. or allied assets. - Over $20B in cyber capabilities, including: - Robust Cyber Operations integrating across all domains, denying and defeating adversary freedom of maneuver in and through cyberspace, and forging a cyber force capable of delivering greater lethality. - Invests in the cybersecurity of weapon systems, IT systems, and critical DoW infrastructure to counter unacceptable cyber threats eroding U.S. and allied military advantage, enabling all-domain maneuver and protecting DoW systems and supplier networks. Winning the strategic competition for 21st century technological dominance. Securing America's Military Advantage Nuclear Enterprise - To maintain deterrence against America's adversaries, invests $71.4B across the Nuclear Enterprise to sustain and modernize all three legs of the nuclear triad including: - $16.2B for the Columbia-class submarine - $6.1B for the B-21 bomber - $4.6B for the Sentinel ICBM program - $1.5B for the Long-Range Stand-Off Weapon (LRSO) - This will serve as a deterrent as the foundation of America's defense against threats to the Homeland and America's vital strategic interests. Ensuring Peace Through Strength. Securing America's Military Advantage Maritime Dominance New Ships & Expanded Capacity: Key Takeaway: A consistent, strong demand signal to expand production. - $65.8B procures 18 Battle Force Ships, 16 Support Ships. - $427M procures 3 Medium Unmanned Surface Vehicles (MUSV) and testing and development of payload systems. - $8.7B in Maritime Industrial Base and Shipyard Infrastructure. - DoW is investing in 7 private, 4 public, and multiple Tier 2 private shipyards, including funds to begin site planning for a 5th public shipyard. Maritime Investment: - SSIB: $1.3B - SIOP: $1.8B - SIB: $2.5B - Nuclear Infrastructure: $3.1B DoW is increasing its procurement of new ships, expanding its autonomous naval fleet, and investing in the Maritime & Submarine Industrial Base. Securing America's Military Advantage Land Power Investments in New Capabilities: Key Takeaway: $64.5B to procure new assets, focusing on missiles, armored vehicles, and helicopters. - Munitions: Invests $31.8B to expand production capacity and build critical land power missile stockpiles including Patriot, THAAD, PrSM, and MRC. - Armored Vehicles: Allocates $2.4B procurement and $775M RDT&E to modernize Army Brigade Combat Teams through AMPV procurement, XM30 development, and Abrams upgrades to increase lethality and survivability. - Helicopters: Provides $2.1B RDT&E and $127M procurement to advance MV-75 Cheyenne II prototypes, testing, and production planning while maintaining schedule toward FY30 first unit equipped. Land Power Procurement Comparisons (FY27 vs FY26): - Patriot/THAAD: FY27 buys 3,648 more than FY26 - PrSM: FY27 buys 1,026 more than FY26 - MRC: FY27 buys 376 more than FY26 - AMPV: FY27 buys 109 more than FY26 The Department is committed to modernizing our forces to counter evolving threats. Securing America's Military Advantage Air Power Expanded Capacity: Key Takeaway: The President's Budget invests $102B to grow American air power, a 26% increase over FY26. - F-35: Ramps procurement to 85 aircraft (38 F-35A, 10 F-35B, and 37 F-35C), up from 47 in FY26. - F-15 EX: Procures 24 aircraft, up from 22 in FY26 - F-47 & F/A-XX: Continues investment to develop 6th generation systems with improvements in survivability, lethality, and range. - KC-46A: Increases procurement rate across the FYDP and provides critical funding for mods, spares, and reliability improvements to increase aircraft availability. Aircraft Procurement Quantities: - EA-37B / Compass Call: 3 - MH-139: 4 - F-35B: 10 - KC-46: 15 - Advanced Pilot Training T-7A: 23 - F-15EX: 24 - F-35C: 37 - F-35A: 38 Maximizes readiness and aircraft availability. Ensuring America's Military Readiness Restoring Readiness - The FY27 President's Budget addresses readiness head-on, funding $190B for core readiness and enablers, up nearly 20% from FY26. - Core readiness is direct funding for a broad variety of Joint Force activities: - Aviation training & flying hours - Large scale combat operations training - Equipment and Maintenance readiness - Maintaining a high state of readiness is essential to a ready fighting force, but has consistently been a challenge to balance with modernization. - The Department is making a deliberate effort to ensure every unit across the Joint Force achieves operational, materiel, personnel, and training readiness. Focused investment on core readiness of our Joint Force. Ensuring America's Military Readiness Honoring our Warfighters - Funds a $5.8 billion military pay raise for the American Warfighter: - 7% for all military personnel ranked E-5 and below - 6% for E-6 to O-3 - 5% for O-4 and above - Our greatest strength is our all-volunteer Joint Force. - This pay increase appropriately compensates our warfighters commensurate with their extraordinary service. Recognizing and respecting our warfighters and their families. Ensuring America's Military Readiness Keeping Warfighters in the Fight - Combat support medicine is the single greatest determinant of battlefield survival after weapons. - Proposes establishing a distinct Combat and Operational Medical Readiness (COMP) account that protects and prioritizes critical resources required to sustain warfighter health and medical readiness. - $20.3 billion for medical readiness, training platforms, and the military-unique operational medicine capabilities that support the warfighter. - $3.2 billion to restore and repair critical medical infrastructure. - Splitting out the cost of Private Sector Care into its own account enhances transparency and accountability for resources, balancing care in the military training platforms with care from civilian partners. - $22.2 billion for the Private Sector Care Program (PSCP) to fund all beneficiary healthcare provided by TRICARE contracts. Delivering medical readiness for warfighters and care for their families. Ensuring America's Military Readiness Housing our Warfighters - Honors our warfighters by restoring every last barrack to a condition worthy of their sacrifice. Our Barracks Task Force has assessed the issues and will be leading this effort. - $8.8B in improvements (HVAC repairs, mold remediation, electrical & plumbing updates, room configuration, roof repairs) to fix all sub-standard barracks. - $2.5B in barracks sustainment (preventive maintenance, work orders) to protect our investment, keep all barracks in good working order, and reduce work-order wait times. - $10.2B for new barracks where we have a housing deficit, new mission requirements, or it is more economical than repairing the existing structures. - $4.4B in Family Housing, including: - $1.7B for improving existing and building new/replacement units. - $2.4B for maintenance and repair, management, and sustaining activities. - $0.3B for privatized housing oversight and project restructuring to repair homes. Making sure our Joint Force has housing that is clean, comfortable, and safe. The FY27 Budget: Solidifying Peace Through Strength Conclusion To meet the complex and increasingly dangerous threat environment, the FY27 budget provides a ~42% increase that will ensure America's military dominance for decades to come, by: Supercharging America's Industrial Base: - 46% growth in ship procurement and 26% growth in air power funding - Reshoring critical minerals - Prioritizing energy independence and emerging technologies Securing America's Military Advantage: - Delivering nearly $18B to operationalize Golden Dome - Delivering over $74B investment in drone dominance and counter drone technologies - Making the largest investment in space capabilities in American history Ensuring America's Military Readiness: - Unleashing next generation capabilities like the F-47, B-21, and the Golden Fleet - Modernizing the nuclear triad to bolster American deterrence - Restoring the barracks of our warfighters to top condition "I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars." - President Donald J. Trump, January 7, 2026 DEPARTMENT OF WAR UNITED STATES OF AMERICA War.gov