Trump Signs $901 Billion Defense Budget, Setting Record for US Military Spending
US President Donald Trump signed into law the National Defense Authorization Act (NDAA) for fiscal year 2026, endorsing a record military budget of $901 billion, approximately $8 billion more than initially requested by the administration. The act, which passed through the Senate with broad bipartisan support, includes an annual $400 million funding for Ukraine through 2027 and provisions for deeper engagement with India among other significant measures.
Background and Context
The NDAA sets the Pentagon's priorities, authorizing spending on weapons procurement, troop pay, and major defense initiatives. The signed bill represents the largest defense budget in US history and includes a nearly 4% pay raise for troops, new funding for Ukraine and the Baltic States, and measures designed to scale back security commitments abroad.
Key Developments and Details
The $901 billion defense budget includes a significant $800 million allocation for Kiev spread over the next two years. This funding, which forms part of the Ukraine Security Assistance Initiative (USAI), will be used to pay American defense companies for military equipment. This allocation, however, represents less than 0.09% of the total defense spending.
The bill also endorses a deeper engagement with India in the Indo-Pacific region, outlining the ‘sense of Congress on Defense Alliances and Partnerships.’
In a surprising move, Trump also announced a one-time warrior dividend
of $1,776 for 1.45 million U.S. service members, a $2.6 billion initiative set to hit service members' bank accounts before Christmas. The president credited tariffs for bringing in the extra money.
Implications and Reactions
Despite the record-breaking defense budget, the act also places constraints on Trump's military ambitions. Some of these constraints include provisions inserted by Congress providing new aid to Ukraine and limiting his ability to reduce US involvement in the defense of Europe.
Rep. Rick Allen, in a release shared online, lauded the bill, stating, With President Trump's signature, the FY2026 NDAA officially delivers on our peace-through-strength agenda with a generational investment in our national defense.
However, the bill did encounter some snags in the House and lingering issues in the Senate that caused frustration among lawmakers.
Conclusion
In signing the NDAA, Trump has approved the largest military spending package in U.S. history. While the budget received broad bipartisan support, it also came with caveats that could rein in some of Trump's military ambitions. Moreover, the increase in aid to Ukraine comes amidst a major corruption scandal, highlighting the complex geopolitical climate surrounding the defense budget.