Defense Budget

President Donald Trump has issued a warning to defense firms about limits on share repurchases and executive compensation, citing concerns over investments in modernizing weapons production facilities. The move comes as the administration plans to issue an executive order targeting defense company share buybacks, dividends, and executive compensation.

The president recently announced his desire for a $1.5 trillion defense budget in fiscal year 2027, which would represent a substantial increase of $600 billion over current figures. Congress should work with the White House to develop and pass another budget reconciliation bill with defense spending in 2026.