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Trump's budget focuses on high-tech missiles, drones, and

troop

pay raise

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Navy jobs cut, fewer ships and jets to save money

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Debate on Capitol Hill over F-35 jet procurement

By Mike Stone

WASHINGTON, June 25 (Reuters) - U.S. President Donald

Trump wants a pay raise for troops, more high-tech missiles and

drones in next year's defense budget, while cutting Navy jobs,

and buying fewer ships and fighter jets to save money, according

to budget materials posted Wednesday.

At $892.6 billion, the defense and national security budget

request is flat compared with this year.

The budget, which also includes nuclear weapons-related

activities carried out by the Department of Energy and increases

funding for homeland security, puts Trump's mark on the military

by pulling funds away from weaponry and services to fund his

priorities.

The White House said the funding will be used to deter

Chinese aggression in the Indo-Pacific, and revitalize the

defense industrial base.

Most of the funding for Trump's marquee Golden Dome missile

defense shield was included in a separate budget request and is

not part of the latest proposal sent to Congress.

In the 2026 budget Trump requested fewer F-35 jets made by

Lockheed Martin ( LMT ) and only three warships. Procurement of

a Virginia-class made by General Dynamics ( GD ) and Huntington

Ingalls Industries ( HII ) and 15 other ships are expected to be

included in a separate appropriation bill, the Navy said.

The budget asks for a 3.8% pay raise for troops, but also

trims costs by retiring older weaponry including ships and

planes that are more expensive to operate. Under the plan, the

Navy will reduce its civilian employee workforce by 7,286

people.

Compared to Biden's budget from his last year in office,

which had asked for 68 F-35 jets in fiscal 2025, Trump's fiscal

2026 request seeks only 47 of the fighter jets.

The budget has already sparked debate on Capitol Hill where

the House Appropriations Committee's Defense subcommittee's

draft bill for fiscal-year 2026 boosts the F-35 buy to 69, one

more than Biden's 2025 request.

The Pentagon continues prioritizing purchasing munitions and

key weapons systems.

The Air Force is continuing its investment the Joint Air to

Surface Standoff Missile - Extended Range and Long Range

Anti-Ship missile which have longer ranges and can be more

effective in the Pacific.

On the other hand, the budget seeks far fewer Precision

Strike Missile, which will replace the Army Tactical Missile

(ATACM) used in Ukraine.

Lockheed Martin ( LMT ) makes all three missiles.

The budget also boosts spending on small drones - in part

because of lessons learned in Ukraine where unmanned aircraft

have proven to be an integral part of low-cost, yet highly

effective warfighting.

The detailed request comes as Republicans debate defense

spending priorities in their sweeping $150 billion defense

package contained in the pending "One Big Beautiful Bill Act".

The act has already been passed the House of Representatives and

will give an initial $25 billion boost to Trump's controversial

Golden Dome missile defense shield.

Defense spending usually accounts for about half of the U.S.

discretionary budget; the rest goes to transportation,

education, diplomacy and other departments.