Trump’s defense budget gives troops a raise, but cuts jets and ships

President Donald Trump’s latest defense budget proposal calls for pay raises for troops, more investment in advanced missiles and drones, but also trims back spending on ships, fighter jets and Navy jobs to balance the books, according to budget documents released Wednesday.

The proposed $892.6 billion national security budget remains roughly unchanged from the previous year and includes defense spending as well as nuclear programs under the Department of Energy and increased homeland security funding.

The plan reflects Trump’s strategic shift, redirecting resources from traditional weapons systems to his administration’s priorities, including deterring China in the Indo-Pacific and strengthening the U.S. defense industrial base.

Funding for Trump’s flagship Golden Dome missile defense project largely falls under a separate request and is not fully accounted for in this budget submission to Congress.

In fiscal year 2026, Trump is asking for just 47 Lockheed Martin (NYSE:LMT) F-35 fighter jets, significantly fewer than the 68 requested by President Biden for 2025. The plan also includes purchasing only three new warships, with additional vessels like the Virginia-class submarines expected to be funded through separate legislation, according to the Navy.

Congress wants more F-35s

While the budget proposes a 3.8% pay raise for military personnel, it also outlines cost-cutting measures, including the retirement of older, costly ships and aircraft and a reduction of 7,286 civilian jobs within the Navy.

Congress has already begun pushing back, with the House Appropriations Committee’s draft defense bill for 2026 recommending 69 F-35s, slightly above Biden’s prior request.

The Pentagon continues to prioritize munitions and advanced weapons systems, such as the Joint Air-to-Surface Standoff Missile – Extended Range and the Long Range Anti-Ship Missile, seen as critical for operations in the Pacific. However, fewer Precision Strike Missiles are included, despite their role as the successor to the Army’s Tactical Missile System (ATACMS), widely used in Ukraine. All three missile systems are produced by Lockheed Martin (NYSE:LMT).

The budget also boosts funding for small drones, a reflection of their proven battlefield value in Ukraine as low-cost, high-impact assets.

These proposals come as Republicans debate their broader $150 billion defense package under the so-called “One Big Beautiful Bill Act,” which the House has already passed. That legislation includes an additional $25 billion for Trump’s Golden Dome initiative.

Historically, defense spending comprises about half of the U.S. discretionary budget, with the remainder allocated to transportation, education, foreign affairs and other domestic programs.