The Hegseth budget: defense secretary’s $1.5tn ask reveals military-industrial chaos
US Defense Secretary Pete Hegseth is demanding a record $1.5 trillion budget for 2027 while seeking emergency funding for the Iran war, sparking confusion and criticism in Congress.
After ordering an 8% annual cut to the Pentagon budget in February 2025, the plan quickly evaporated. Now, Secretary Pete Hegseth is demanding a $454 billion increase for 2027 military spending, bringing the total to nearly $1.5 trillion – a 44% jump. Adjusted for inflation, this would for the first time match or exceed US military spending at the height of World War II.
At the same time, Hegseth is pushing for $67 billion in emergency funds for 2026 for the Iran war. During a Senate Appropriations Committee hearing, Democrat Patty Murray pointed out that many items are unrelated to the war: $800 million for National Guard patrols in DC, $1 billion for army border patrols, and $900 million for illegal boat strikes in the Caribbean. Hegseth blamed the previous administration.
Despite a previous $156 billion boost under the One Big Beautiful Bill Act, about $75 billion remains unobligated with no detailed spending plan. Hegseth could not provide specifics. A new estimate puts Iran war costs at $37.5 billion through September 30, suggesting the conflict may continue.
A significant portion of the $1.5 trillion budget goes to tech projects: $58.5 billion for artificial intelligence and $20 billion for the Office of Strategic Capital, led by former Cerberus Capital chief Stephen Feinberg. Former Uber executive Emil Michael, who oversees AI, made millions from investments in Elon Musk’s xAI. The administration’s only nod to fiscal restraint was identifying $1.6 billion in cuts to DEI programs.
