• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
EconomyDebt

U.S. debt concerns weigh on Trump’s plan to supersize the Pentagon’s budget to $1.5 trillion, highlighting this law about great-power status

Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
Down Arrow Button Icon
Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
Down Arrow Button Icon
February 23, 2026, 9:01 PM ET
A Navy F-35C appears in the Pacific Air Show on September 29, 2023 in Huntington Beach, Calif.
A Navy F-35C appears in the Pacific Air Show on September 29, 2023 in Huntington Beach, Calif. Nick Ut/Getty Images

President Donald Trump’s plan to boost defense spending 50% to $1.5 trillion has reportedly run into some resistance, including fears about adding to the $38.5 trillion mountain of U.S. debt.

Recommended Video

Sources told The Washington Post that White House budget chief Russell Vought was among the critics of giving the Pentagon an additional $500 billion, warning on its potential impact on the federal deficit, which hit $1.8 trillion in the last fiscal year.

A longtime fiscal hawk, Vought has been an advocate of reducing overall government spending while also rebuilding the U.S. military, the report said.

The White House did not provide a comment. A defense spokesman told the Post that the Pentagon is committed to “utilizing President Trump’s $1.5 trillion defense budget to serve our warfighters and the American people.”

“Our deliberative and responsible budget process ensures the Department is a good steward of taxpayer resources and able to combat 21st century threats,” he added.

Other obstacles to the huge defense boost include deciding where to spend all that money as officials debate how much to invest in existing weapons systems versus emerging high-tech areas like AI, the Post said.

The Defense Department has to balance several spending priorities. It must reconstitute an aging fleet of ships and aircraft with next-generation platforms like the B-21 stealth bomber and the Columbia-class submarine. Production of the F-35 stealth fighter is also ramping up to replace a range of platforms.

On top of that, Trump has announced plans for the F-47 sixth-generation fighter that will fly alongside autonomous drones. And in December, he unveiled a concept for a new class of battleship.

President Donald Trump announces the US Navy’s new Golden Fleet initiative, unveiling a new class of warships, at Mar-a-Lago in Palm Beach, Florida, on December 22, 2025.
ANDREW CABALLERO-REYNOLDS / AFP via Getty Images

Meanwhile, after years supplying Ukraine with weapons and drawing down its own stockpiles of munitions, the Pentagon must rebuild its inventory to prepare for any future conflicts, including one against a near-peer adversary like China or Russia.

Russia’s invasion of Ukraine has also unleashed a transformation in warfighting tactics, especially in the use of drones and the ability to mass produce such weapons. And tech companies like Palantir and SpaceX are driving advances in the use of AI and space-based capabilities, respectively.

“This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Trump said in a Truth Social post this month regarding his $1.5 trillion goal.

But addressing all those needs will come with a high price tag, just as America’s spending capacity is coming under more strain. Publicly held U.S. debt is expected to soar from about 100% of GDP today to 120% by 2036, according to the latest projections from the Congressional Budget Office.

To be sure, soaring costs for Social Security and Medicare are the main drivers of the deteriorating fiscal outlook. But a half-trillion-dollar boost to annual defense spending would still accelerate the accumulation of debt, which entails the added costs of interest payments.

The Committee for a Responsible Federal Budget recently warned that a U.S. “debt spiral” could start soon, citing CBO estimates that show the interest rate on government borrowing will exceed economic growth in the coming years.

The White House budget chief’s reported aversion to seeing the deficit widen further on the back of a bigger military bill highlights a phenomenon observed by historian Niall Ferguson, who has said any great power that spends more on debt servicing than on defense risks ceasing to be a great power.

“This is because the debt burden draws scarce resources towards itself, reducing the amount available for national security, and leaving the power increasingly vulnerable to military challenge,” he wrote.

In fact, the U.S. hit reached this threshold in 2024 and continues to meet the conditions for “Ferguson’s Law.” Of course, ratcheting up defense outlays to $1.5 trillion would put the Pentagon budget back above debt-servicing costs, but only temporarily. Even without the added military spending, interests costs are expected to reach $2.1 trillion by 2036.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
Jason Ma
By Jason MaWeekend Editor

Jason Ma is the weekend editor at Fortune, where he covers markets, the economy, finance, and housing.

See full bioRight Arrow Button Icon

Latest in Economy

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Lists Calendar
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Lists Calendar
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Economy

A man helps a woman pick meat in the grocery store
EconomyFood and drink
Beef is becoming a luxury as prices stay at record highs. They likely won’t come down anytime soon
By Jacqueline MunisApril 22, 2026
8 minutes ago
President Donald Trump
AITariffs
The AI boom is singlehandedly carrying the U.S. import market—and adding $200 billion to the trade deficit, Fed study finds
By Tristan BoveApril 22, 2026
1 hour ago
arjun
InvestingIran
$75 billion investment chief: Now is exactly the right time to double down in the Gulf
By Arjun RaghavanApril 22, 2026
2 hours ago
helium
AIData centers
The AI economy runs on helium. The Iran war just created a $650 billion problem
By Nick LichtenbergApril 22, 2026
2 hours ago
trump
PoliticsIran
Iran has Trump caught on the same math that Ukraine is using against Putin: $1 million missiles, $20,000 drones
By Aaron Brynildson and The ConversationApril 22, 2026
2 hours ago
Trump administration reportedly nears $500 million rescue deal for Spirit Airlines
EconomySPIRIT AIRLINES
Trump administration reportedly nears $500 million rescue deal for Spirit Airlines
By Catherina GioinoApril 22, 2026
3 hours ago

Most Popular

The tables have turned: Florida and Texas are the biggest losers in the housing market as Ohio emerges a surprise winner
Real Estate
The tables have turned: Florida and Texas are the biggest losers in the housing market as Ohio emerges a surprise winner
By Sydney LakeApril 21, 2026
1 day ago
'Something sinister could be happening': FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
Politics
'Something sinister could be happening': FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
By Catherina GioinoApril 21, 2026
24 hours ago
$166 billion in tariff refunds just became available, but small businesses may already be at a disadvantage
Law
$166 billion in tariff refunds just became available, but small businesses may already be at a disadvantage
By Sasha RogelbergApril 20, 2026
2 days ago
Jeff Bezos once gave Eva Longoria and the admiral behind Osama bin Laden's capture $100 million—but she says you don't need wealth to give back
Success
Jeff Bezos once gave Eva Longoria and the admiral behind Osama bin Laden's capture $100 million—but she says you don't need wealth to give back
By Orianna Rosa RoyleApril 21, 2026
1 day ago
‘Something sinister’: What we know about the FBI probe into dead and missing scientists linked to space and military industries
Economy
‘Something sinister’: What we know about the FBI probe into dead and missing scientists linked to space and military industries
By Jim EdwardsApril 22, 2026
8 hours ago
John Ternus, the man stepping into Tim Cook and Steve Jobs' shoes, is a 25-year Apple veteran with zero LinkedIn posts
C-Suite
John Ternus, the man stepping into Tim Cook and Steve Jobs' shoes, is a 25-year Apple veteran with zero LinkedIn posts
By Kelvin Chan and The Associated PressApril 21, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.