Ships, missile defence, AI: Pentagon to spend $153 billion in 2026 on US military

The Pentagon has revealed plans to spend more than $153 billion in new military funding in 2026, fast-tracking billions that were originally approved by President Donald Trump’s signature domestic policy bill.

The funds, initially intended to be spread over five years, are now being accelerated as the Defence Department aims to modernise the US military with new ships, advanced weapons, and artificial intelligence technologies.

In its report to Congress, the Pentagon said it is "working to accelerate" and spend all the funds in 2026 "if that can be done without sacrificing effectiveness."




The move comes amid a broader push by the administration to expand defence spending, with proposals for even larger budgets in 2027 and increased military activity abroad, including positioning ships in the Middle East amid tensions with Iran.

Detailed spending plans

Some sections of the report provide substantial detail:

• $29 billion for shipbuilding, including procuring a new nuclear
• $24 billion for munitions, such as medium-range missiles
• $16 billion for readiness, covering maintenance and repair of existing equipment

Other priorities include strengthening weapons manufacturing and incorporating AI into defence operations, highlighting the administration’s push toward modernisjing the US military.

Despite the report’s details, some spending remains unclear. The Pentagon did not declassify how it would spend more than $24 billion allocated for the president’s "Golden Dome" missile defence project, a proposed shield modeled after Israel’s Iron Dome, stating only that the information "is available at a higher classification."

The department also provided no additional details on $1 billion allocated by Republicans for border patrol, anti-narcotics operations, and the "temporary detention" of migrants on military bases, noting that the spending was "pending approval."

Political context and oversight concerns

The spending push comes as Trump has proposed increasing military spending by more than half in 2027, while projecting US military strength abroad, including positioning ships in the Middle East for a possible attack on Iran.

Republicans called the additional $153 billion a "generational investment" that would help modernise the military and improve troops’ quality of life. Democrats warned that the funds could be used as a slush fund, citing the lack of guardrails placed on the money.

The Senate and House Armed Services Committees sent the Pentagon informal guidance on spending and requested a formal plan by August. The administration missed this deadline. Lawmakers eventually received a classified version of plans for a portion of the funds, which Democrats denounced as an attempt to stifle congressional oversight.

Sen. Jeff Merkley of Oregon, the top Democrat on the Budget Committee, said Monday, "At a moment when the administration is planning to propose a $1.5 trillion defence budget—the largest in US history—transparency and oversight are more essential than ever."

The Pentagon report reveals a mix of clearly defined spending priorities and areas shrouded in secrecy. While billions are planned for shipbuilding, munitions, and readiness, large sums for the Golden Dome missile defence system and border-related operations remain classified or pending.

The report underscores the administration’s push to accelerate defence spending while also highlighting the political tension over transparency and congressional oversight.

With $153 billion set to be spent in 2026 and proposals for even larger budgets in 2027, lawmakers and the public will be closely watching how these funds are allocated, and whether modernization efforts are balanced with accountability.