On Tuesday the US Congress adopted the Defence budget for FY 2026, folded into a broader budget bill signed by Donald Trump. Discretionary funding allocated to defence totals $839bn, above the administration’s initial request but below the ambitions backed by the Senate.
The budget is $8.4bn higher than the president’s request, while remaining below the proposal from the Senate Appropriations Committee, which targeted $852bn. It nevertheless comes in slightly below 2025 levels once the additional appropriations voted last year are included.
Investment accounts – covering equipment procurement and research spending – total $313.4bn, up 1.5% y-o-y.
In detail, funding dedicated to military procurement is steady at $167.5bn, while RDT&E (research, development, test and evaluation) spending rises by 3% to $145.9bn. Added to these amounts are reconciliation funds, not included in the main budget, representing an additional $89bn for investment.
On the operational side, the bill clearly focuses on munitions and naval shipbuilding. Funding for munitions increases by $3bn, with the introduction of multiyear contract authorities for eight systems deemed critical, including the PAC-3, THAAD and SM-3 IB programmes, alongside a significant strengthening of industrial capacity for solid-propellant rocket motors.
The US Navy also receives strong backing, with an additional $6.3bn earmarked for shipbuilding, bringing the total envelope to $27.2bn.
In particular, the budget provides full funding for a second Virginia-class submarine, while supporting several cornerstone air and naval programmes.
According to Jefferies analysts, the 2026 defence budget highlights Washington’s sustained priority on ramping up industrial production, rebuilding munitions stockpiles and maintaining technological superiority.
For reference, a month ago, Donald Trump suggested that the 2027 military budget could reach $1,500bn. In comparison, France’s armed forces ministry will have a budget of €57.1bn in 2026.
