Key Takeaways

  • The president recently announced his desire for a $1.5 trillion defense budget.
  • A full year defense continuing resolution looks unlikely for the remainder of 2026.
  • Divided control of Congress creates a high probability of another full year defense continuing resolution in FY27.

Strategic Implications

This may indicate a need for Congress to work with the White House to develop and pass another budget reconciliation bill with defense spending. The Pentagon should engage now to ensure legislation contains funding for what the military needs most. This approach provides more flexibility in funding accounts and delivers money right away, not a year or more from now.