Outgoing US Secretary of Defense Lloyd Austin has recommended that the US government increase defense spending by about $50 billion more than projected in fiscal year 2026, an increase that would push the Pentagon's budget beyond $1 trillion in the coming years, Bloomberg reports, UNN writes.
Details
The recommendation, made in a November 27 letter to the U.S. Office of Management and Budget (OMB), suggests a way forward with the defense spending caps imposed as part of the 2023 debt ceiling agreement, which expire after fiscal year 2025, the publication writes.
An outgoing letter from the US Secretary of Defense may provide some "political cover" for members of Congress to increase defense spending after President Donald Trump takes office on January 20, the newspaper writes. Another question is whether Trump will support this idea, and his nominee to replace Austin, Pete Hagel, is likely to be asked about his views on spending during his confirmation hearing on Tuesday, the newspaper notes.
"I have not wavered in my assessment that meeting the requirements of our strategy requires real growth" above inflation ‘and sustained new investment in fiscal years 2026-2030,’ Austin wrote.
Austin recommended that OMB leave the incoming Trump administration with a proposed five-year defense plan that starts at $926.5 billion in FY2026, up from the projected $876.8 billion. It proposes spending of $972.8 billion in FY2027 and more than $1 trillion in FY2028, compared to OMB's previously projected $913.5 billion.
Funding for the Pentagon alone would not include assistance to Ukraine and Israel, Austin wrote in the letter. He said that such foreign military assistance should continue to be funded through additional appropriations, the newspaper writes.
Austin's proposed budget targets reportedly also do not include additional funding to replace weapons delivered to Ukraine and Israel, funding that, if approved, would provide an incentive to U.S. defense contractors.
"We know that our industrial base does not yet have the capacity to meet these needs in just one year, but investments to replenish our stocks must begin no later than" the fiscal year that begins on October 1, he wrote.
Austin called for defense spending of approximately 3% of US GDP in fiscal years 2027-2030. The OMB estimates that US defense spending will reach 3.2% of GDP in fiscal year 2024.
Defense spending will increase by more than $1 trillion in fiscal years 2029 and 2030, compared to OMB projections of $932 billion and $939 billion, respectively, the publication notes.