U.S. President Donald Trump has proposed a flat $892.6 billion defence and national security budget for 2026. The plan includes a 3.8% pay hike for troops and focuses more on advanced missiles and drones while cutting back on fighter jets, warships, and Navy jobs to manage costs.

The budget:

• Prioritises missile systems and drone tech, especially for operations in the Indo-Pacific.

• Requests only 47 F-35 jets (down from Biden’s earlier request of 68) and just 3 new warships.

• Trims expenses by retiring older ships and planes and cutting 7,286 Navy civilian jobs.

• Shifts funds toward longer-range weapons, such as the Joint Air-to-Surface Standoff Missile – Extended Range and the Long Range Anti-Ship Missile, both of which are useful in the Pacific.

• Reduces orders for the Precision Strike Missile, meant to replace the ATACMS used in Ukraine.

• Increases spending on small drones, inspired by Ukraine’s success using them in warfare.

Trump’s separate “Golden Dome” missile defence shield is not part of this proposal but is being pushed under another $25 billion package in the broader “One Big Beautiful Bill Act,” which has already been passed by the House.

The Pentagon says the shift in focus is aimed at countering China and strengthening the U.S. defence industry. However, the budget has sparked debate in Congress, especially over the reduced number of F-35 jets.

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