Trump's $1.5 Trillion Defence Budget Faces Democratic Blockade as Iran War Threatens His Military Plans

President Donald Trump's proposed $1.5 trillion (£1.14 trillion) defence budget faces growing opposition after Democrats secured control of both chambers of Congress in the US midterm elections.

According to Bloomberg, Democrats are preparing to challenge the unprecedented spending increase, which would raise defence spending by approximately 44% compared with the previous fiscal year's enacted Department of Defense budget.

The opposition threatens major military initiatives, including Trump's Golden Dome missile defence system and proposed Trump-class battleships.

Democrats Challenge Trump's Military Spending Plans

In a report published on 8 November 2026, Bloomberg said Democrats had gained greater leverage to oppose the proposed increase following their election victories.

Representative Adam Smith of Washington, the top Democrat on the House Armed Services Committee and expected to become its chairman in January 2027, called for a more sustainable approach to national security spending.

'We must push for the development of a more realistic and sustainable approach to our national security — one that does not require a defence budget in excess of $1 trillion or one paid for with draconian cuts to critical domestic programmes,' Smith said, according to Bloomberg.

Bloomberg reported that Democrats were considering a defence budget closer to $1 trillion (£759 billion), citing a person familiar with the discussions. The figure would be substantially below Trump's proposal.

The report said Democrats wanted to fund necessary military modernisation without appearing to support additional spending on the Iran war, which has faced growing political opposition.

Meanwhile, Reuters reported on 4 November that shares in major defence contractors fell following the Democrat's election victory, as investors anticipated tighter scrutiny of military spending.

Lockheed Martin, Northrop Grumman, RTX, L3Harris Technologies and General Dynamics were among the companies affected. The proposed Golden Dome and battleship initiatives could also face greater congressional scrutiny.

Pentagon Funding Faces Uncertainty

According to Bloomberg, Congress must address the annual defence authorisation bill and the 2027 government spending plan before temporary federal funding expires on 11 December.

Some Democrats are considering another short-term funding extension rather than approving long-term legislation before the new Congress takes office.

Representative Glenn Ivey, a Maryland Democrat serving on the House Appropriations Committee, supported that approach during an appearance on Bloomberg Television.

'Now that we have these kinds of majorities, I don't know that we need a long-term bill,' Ivey said. 'I'd be leaning more towards a short-term fix.'

Bloomberg reported that Defence Secretary Pete Hegseth defended Trump's proposal, arguing that additional funding was necessary to modernise the military as autonomous technology transforms warfare.

In a video posted on X on 5 November, Hegseth urged lawmakers to support the Pentagon's funding requirements.

'The Defense Department must be funded to meet the moment right now,' he said. 'We need every vote from every patriotic member of Congress.'

Hegseth Faces Congressional Scrutiny

The funding dispute comes as Hegseth faces promised congressional investigations into his handling of the Iran war and other Pentagon decisions.

According to The Straits Times, in a Reuters-based report published on 5 November, Democrats had promised to investigate the defence secretary and his handling of the Pentagon after winning control of Congress.

Bloomberg quoted defence budget analyst Todd Harrison of the American Enterprise Institute as describing the prospects of passing the annual defence policy bill as 'a coin toss'.

Travis Sharp of the Center for Strategic and Budgetary Assessments also predicted that the final budget approved by Congress would fall short of the administration's ambitions.

With the 11 December funding deadline approaching, the administration faces uncertainty over whether Congress will approve its proposed spending increase. The outcome could affect funding and timelines for several major defence programmes, including the Golden Dome system and proposed battleships.