US defence budget could top $1 trillion in 2028, Secretary Austin recommends boost

Outgoing Defence Secretary Lloyd Austin has recommended a substantial increase in the US defence budget, proposing an additional $50 billion in fiscal year 2026, which would bring the Pentagon's spending to $926 billion—$55 billion more than the current projection.

Austin's recommendation, made in a letter to the Office of Management and Budget (OMB) on November 27, seeks to extend defence spending beyond the caps imposed by the 2023 debt-limit agreement, which are set to expire after fiscal year 2025, Caliber.Az reports citing foreign media.

The proposed budget would pave the way for a steady increase in defence spending, with plans for more than $1 trillion in annual expenditures by fiscal 2028. This increase would start with $926.5 billion in fiscal 2026, surpassing the projected $876.8 billion, and reach $972.8 billion in fiscal 2027. For fiscal 2028, the budget would exceed $1 trillion, compared to the previously projected $913.5 billion.

The figures Austin suggested focus solely on the Pentagon's budget and do not include foreign military assistance for Ukraine or Israel. Austin emphasized that such aid should be handled through supplemental appropriations, separate from the Pentagon's regular budget. Additionally, Austin pointed out that the US defence industrial base currently lacks the capacity to replace weapons sent to these countries in just one year. He recommended beginning investments to reset inventories by fiscal year 2026.

While Austin’s letter did not provide specific details on the rationale behind the proposed increase, it referenced the need to support the US National Defence Strategy, which emphasizes countering China and strengthening alliances. Austin called for defence spending to remain around 3 per cent of US GDP from fiscal 2027 to 2030. According to OMB projections, US defence spending is expected to comprise 3.2 per cent of GDP in fiscal 2024.

Austin's proposal also suggests that defence spending should exceed $1 trillion in fiscal years 2029 and 2030, surpassing OMB's forecast of $932 billion and $939 billion, respectively. Pentagon officials, including Comptroller Mike McCord, have indicated that the current $876 billion planning figure serves as a starting point for discussions, with the incoming administration expected to review and adjust the budget accordingly.

This recommendation may serve as a basis for increased defence spending under the next administration, particularly as former President Donald Trump prepares to take office again, with his incoming defence secretary nominee, Pete Hegseth, likely to face scrutiny on this matter during confirmation hearings.

By Vafa Guliyeva