WASHINGTON — The Pentagon’s historic $1.5 trillion budget request for fiscal 2027 is necessary to allow the military to make “paradigm-shifting investments,” with the money slated to bankroll multiyear contracts, the head of the Office of Management and Budget said today.
Speaking in front of the House Budget Committee this morning, OMB Director Russell Vought acknowledged that the defense budget contains a “sizable increase,” which he said is critical for increasing production of ships, planes, drones and munitions.
“For the industrial base to double and triple capabilities, and build more facilities — not just add shifts — it requires multi-year agreements to purchase into the future,” he said in opening comments. “That cost has to be booked in the first year.”
The eye-popping $1.5 trillion request is split between a $1.15 trillion base budget ask, the first Pentagon budget to top $1 trillion, and another $350 billion in reconciliation funds.
FULL COVERAGE: The 2027 Defense Budget
Later in the hearing Vought said that partially funding the Pentagon through the reconciliation process would ensure that defense funds “aren’t held hostage” during traditional the appropriations process. The OMB director has repeatedly defended the use of reconciliation — which allows a party to pass legislation via a simple majority — to allow Republicans to raise defense spending while not increasing funds for nondefense accounts.
Among the biggest funding increases in the FY27 budget is the Pentagon’s munitions budget, which ballooned by 188 percent in the latest request with huge boosts anticipated to programs like PAC-3 interceptors, THAAD interceptors, Tomahawk cruise missiles and AMRAAM air-to-air missiles.
Prior to Vought’s appearance before lawmakers today, several experts told Breaking Defense that the funds requested would likely be used to finance multiyear deals that would allow industry to begin making significant capital investments to ramp munitions production — about a dozen of which have been announced since January, but have not resulted in finalized contracts.
On top of the base budget and supplemental, Vought was asked whether a forthcoming defense supplemental for operations in Iran would total around $100 billion, as has been reported. He said he didn’t have a ballpark number at this time.
“We’re still working on it. We’re working through to figure out what is needed this fiscal year versus next fiscal year,” he said.
Despite the sharp increase to proposed defense spending, defense was not the primary focus during the hearing. Instead, Vought, who did not appear before the committee on the FY26 budget, weathered a barrage of criticism from Democrats over cuts health care, repeatedly stating in response that the cuts weeded out fraud and abuse.
“How many audits has the Department of Defense failed? The number is eight,” said Rep. Pramila Jayapal, D-Wash. “And you want to talk to me about fraud? There is over at least $10 billion in confirmed fraud in the Department of Defense but you’re not going after any of that.”
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In another exchange, Rep. Glenn Grothman, R-Wisc., asked Vought to commit to a “definite decrease” to civilian employees staff at the Defense Department.
“We’ll certainly look at it,” Vought said. “The notion that we’re not trying to find any kinds of deficiencies at the Department of Defense is not true. Our view is that we would want to plow those in to being able to invest in procurement and research.”
Grothman responded that unless the Pentagon made civilian cuts, “I’m not going to vote anymore,” complaining of “so much arrogance” at the department.