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

hikes

for troops

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Request proposes Navy job cuts, fewer ships and jets

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Lawmakers in Congress debating F-35 jet procurement

By Mike Stone

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

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

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

jobs and buying fewer ships and fighter jets, according to

budget materials posted on Wednesday.

At $892.6 billion, the defense and national security budget

request for fiscal 2026 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 Pentagon's portion of the national security

budget is $848.3 billion.

The White House said the funding will be used to deter Chinese

aggression in the Indo-Pacific region, and revitalize the U.S.

defense industrial base.

A senior defense official told reporters on Thursday that at the

request of the Pentagon, funding for Trump's marquee but

controversial "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 of Lockheed Martin's ( LMT )

F-35 jets and only three warships. Procurement of a

Virginia-class submarine 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 that is more expensive to

operate, such as the entire fleet of 162 A-10 Warthogs, which

provide air support to frontline troops. Under the plan, the

Navy will reduce its civilian employee workforce by 7,286

people.

The senior defense official said investments in systems in

the bill will enable the Pentagon to pass an audit by the end of

2028.

Compared to former President Joe 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 in Congress where a draft

bill for fiscal-year 2026, currently under consideration by

lawmakers in the U.S. House of Representatives, boosts the F-35

purchases to 69, one more than Biden's 2025 request.

The Pentagon continues to prioritize purchasing munitions and

key weapons systems.

The Air Force is continuing its investment in the Joint

Air-to-Surface Standoff Missile-Extended Range (JASSM-ER) and

the Long-Range Anti-Ship (LRASM) missiles, both of which have

ranges that can be helpful in the Pacific where distances are a

big factor.

The budget also seeks far fewer Precision Strike Missiles, which

will replace the Army Tactical Missile (ATACM) used in Ukraine.

Lockheed Martin ( LMT ) makes all three missiles.

The budget boosts spending on small drones - in part because of

lessons learned during Russia's war in Ukraine, where unmanned

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

highly effective fighting.

Republicans currently are debating defense spending priorities

in a sweeping $150 billion defense package contained in the

pending "One Big Beautiful Bill Act". The proposed legislation

has already been passed by the Republican-controlled House and

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

project.

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

discretionary budget, with the rest going to transportation,

education, diplomacy and other areas.