US proposes $1.01 trillion defense budget, prioritizing deterrence of China

The United States has unveiled a record $1.01 trillion defense budget proposal for fiscal year 2026, with senior Pentagon officials emphasizing that deterring China in the Indo-Pacific region remains a top strategic priority.

Outlining the proposal at a press briefing on June 26, senior defense and military leaders said the budget reflects a significant shift toward addressing near-peer threats and revitalizing the country’s military-industrial base, Caliber.Az reports via US Department of Defense. 

"This historic defense budget prioritizes strengthening homeland security, deterring Chinese aggression in the Indo-Pacific [region], revitalizing the defense industrial base and maintaining our commitment to being good stewards of taxpayer dollars," a senior defense official told reporters at the Pentagon.

The proposed spending plan represents a 13.4 percent increase from the 2025 fiscal year. It includes $848.3 billion in discretionary spending and $113.3 billion in mandatory funding under congressional reconciliation procedures. Officials noted that the mandatory funds will support the president’s top priorities, such as shipbuilding, missile defense, munitions production, and quality-of-life improvements for military personnel.

Divided among the military services, the budget allocates $197.4 billion for the Army, $292.2 billion for the Navy, and $301.1 billion for the Air Force. An additional $170.9 billion is designated for defense-wide initiatives. Within the Air Force budget, $40 billion has been earmarked for the US Space Force, marking a 30 percent increase from the previous year.

Among the largest single investments is $25 billion for the first phase of a new national missile defense initiative known as the "Golden Dome for America." Nuclear deterrence will also see major funding, with $60 billion proposed for modernization of the US nuclear triad. Defense officials said that conventional weapons programs would receive $6.5 billion, while hypersonic weapons development is set to receive $3.9 billion. Another $15.1 billion has been proposed for cybersecurity programs to strengthen the military’s all-domain operational capabilities.

Other allocations in the budget include funding for the production of advanced aircraft, such as $3.1 billion for the F-15EX Eagle II fighter and $3.5 billion for development of the next-generation F-47 fighter platform. The Navy is slated to receive funding for 19 new battle force ships, while efforts to improve nuclear shipyard productivity will receive a smaller $2.5 million boost.

Despite its scale, the proposed budget also features targeted cuts and program terminations. The Pentagon plans to cancel the E-7 Wedgetail early warning and control aircraft program, citing survivability concerns in a contested environment. The number of F-35 fighter jets to be procured will also be reduced significantly, from 74 to 47, though approximately $1 billion is included to purchase spare parts aimed at improving the aircraft’s long-term readiness.

The budget also contains a $160 billion readiness package — the highest in US history — aimed at ensuring force preparedness. It includes a 3.8 percent pay raise for service members and a $5 billion investment in unaccompanied housing.

In addition to defense priorities abroad, the proposal includes a $5 billion request for border security operations, with funds intended to support troop deployment and detention infrastructure.

Officials said the budget reflects a strategic refocus ordered by Defense Secretary Pete Hegseth in February. That directive led to roughly $30 billion in identified savings from fiscal year 2025, achieved through program cuts, contract caps, and grant reforms. These savings have been reallocated to programs deemed essential for modernizing the US military and countering emerging threats.

Initial justification materials for the proposal, known as “J-books,” were released this week, with further documentation expected in the coming days as lawmakers begin reviewing the administration’s defense priorities.

By Sabina Mammadli