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
Fortune
by Jason MaFebruary 24, 2026
AI-Generated Deep Dive Summary
President Donald Trump’s proposal to increase defense spending by 50% to $1.5 trillion over the next decade has sparked significant debate, particularly due to concerns about its impact on the U.S. national debt. While some within the White House, including Defense Department officials, support the plan as a way to modernize and strengthen the military, others, like budget chief Russell Vought, have raised concerns about the potential strain on the federal deficit. With the national debt already at $38.5 trillion and projected to rise further, critics argue that such a massive increase in defense spending could exacerbate long-term fiscal challenges.
The Pentagon faces several competing priorities as it seeks to allocate the additional funding. This includes modernizing aging fleets of ships and aircraft, developing next-generation platforms like the B-21 stealth bomber and Columbia-class submarines, and investing in emerging technologies such as artificial intelligence (AI) and autonomous systems. Additionally, the U.S. must rebuild its arsenal after years of supplying weapons to Ukraine, while also addressing new threats posed by Russia’s use of drones and advanced warfighting tactics.
However, the financial implications of Trump’s plan are significant. Publicly held debt is expected to rise from 100% of GDP today to 120% by 2036, with interest payments on the debt becoming a growing burden. Experts warn that this could lead to a “debt spiral,” where rising costs for Social Security and Medicare, combined with increased defense spending, strain the federal budget and reduce resources available for national security.
For businesses and investors, these developments matter because they highlight the delicate balance between military spending and economic sustainability. While a stronger military may seem like a short-term priority, the long-term financial strain could divert resources from other critical areas, such as infrastructure investment or innovation in key industries like technology and space exploration. As historian Niall Ferguson has noted, excessive debt can limit a nation’s ability to maintain its status as a global power by reducing funds available for national security and economic growth.
In summary, Trump’s $1.5 trillion defense plan
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Originally published on Fortune on 2/24/2026