The Golden Dome, shipbuilding, and munitions production were among the highlights of the new USD 150 billion defense spending boost for the Pentagon proposed by Congressional Republicans in the reconciliation bill. When combined with the already approved USD 886 billion defense budget, this would push defense spending to more than USD 1 trillion for the first time in US history.
The bill, developed by the House and Senate Armed Services committees (HASC), includes USD 25 billion earmarked for President Donald Trump’s long-discussed Golden Dome missile defense shield project, USD 33.7 billion boost for the US shipbuilding industry, and a significant USD 20.4 billion for munitions production including nearly USD 640 million in extra funding for new medium-range ballistic missiles (MRBM).
The package also includes USD 7.2 billion set aside for the procurement and modernization of tactical aircraft. Nearly half of this money will be allocated to increase production of the F-15EX, an air superiority platform.
There is also provision for additional funding for the B-21 Bomber, the US’s next-generation strategic bomber, the F-47, the US’s next-generation fighter jet, and the F/A-XX, a sixth-generation fighter jet planned for the US Navy.
If passed, this would, for the first time in US history, push the total defense spending bill in FY 2025 beyond USD 1 trillion, as the US Congress has already approved a USD 886 billion defense budget for this fiscal year.
“This legislation is a historic investment of US$150 billion to restore America’s military capabilities and strengthen our national defense,” said HASC Chairman Mike Rogers.
“America’s deterrence is failing, and without a generational investment in our national defense, we will lose the ability to defeat our adversaries. With this bill, we have the opportunity to get back on track and restore our national security and global leadership,” he added.
The bill, which reflects President Trump’s domestic policy priorities, also includes funding for space systems, nuclear deterrence, emerging technologies, border security, military intelligence, and cyber capabilities.
Boost To US Shipbuilding
The US shipbuilding industry could be the biggest winner in the proposed USD 150 billion defense spending boost for the Pentagon.
The legislation earmarks $33.7 billion for the struggling U.S. shipbuilding industry.
This money will be used to build new ships, construct unmanned vessels, and modernize the US shipbuilding infrastructure.
The focus on reviving the US shipbuilding industry is hardly surprising. The industry is arguably going through one of its worst phases in history, even as China continues to march ahead and has attained a leadership position in the global shipping industry.
China’s largest state-owned shipyard, the China State Shipbuilding Corporation (CSSC), built more commercial vessels by tonnage in 2024 than the entire US shipbuilding industry had since World War II.
In a report, “Ship Wars – Confronting China’s Dual-Use Shipbuilding Empires,” the Center for Strategic and International Studies (CSIS) said that China will have a 425-ship strong fleet by 2030, compared to the US Navy’s 300 vessels.
Such is the dominance of the Chinese shipbuilders that even the US military is dependent on the Chinese warships. According to the 2023 US Congress report: “Three of the ten commercial oil tankers selected to ship fuel for DOD (Department of Defense) as part of the newly enacted Tanker Security Fleet are Chinese-built. As for dry cargo supplies for DOD, 7 of the 12 most recently built ships in the Maritime Security Fleet are Chinese-built.”
Earlier this year, a Congressional Budget Office (CBO) report stipulated that to counter the People’s Liberation Army Navy’s (PLAN) expanding maritime power, the US Navy’s ambitious plan to add 85 ships to its fleet will come with a jaw-dropping price tag of US$1 trillion.
Earlier this year, Trump pledged to “resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding,” adding, “We used to make so many ships. We don’t make them anymore very much, but we’re going to make them very fast, very soon. It will have a huge impact to further enhance our national security.”
The bill includes US$4.6 billion to build a second Virginia-class submarine in fiscal 2027, US$5.4 billion for two additional Arleigh Burke-class destroyers, US$2.1 billion for the San Antonio-class amphibious transport dock program, US$3.7 billion for the America-class amphibious assault ships, US$1.8 billion boost for the landing ship medium program, and US$2.7 billion for T-AO oiler procurement.
The bill also proposes US$1.5 billion for the expansion of small unmanned surface vessel production, US$1.8 billion for medium unmanned surface vessel production, and US$1.3 billion for the production of unmanned underwater vehicles.
Golden Dome
Trump’s much-discussed Golden Dome missile shield project was the second-biggest winner in the proposed USD 150 billion defense spending boost for the Pentagon.
The legislation earmarks USD 24.7 billion for the ambitious missile defense shield.
The Ukraine War and the ongoing hostilities with the Houthis in the Red Sea have shown the central role armed drones will play in any future conflict. Besides, China and Russia are developing new hypersonic weapons, which have the potential to penetrate existing air defense systems.
These new challenges have underlined the necessity for upgrading the existing US air defense systems.
The bill proposes US$7.2 billion for the development and procurement of space-based sensors, US$5.6 billion for space-based and boost phase intercept capabilities, US$2.4 billion for non-kinetic missile defense capabilities, US$2 billion for air moving target indicator military satellites, US$2.2 billion to speed up the development of hypersonic defense systems, US$1.9 billion for improved ground-based missile defense radars and US$800 million for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems.
Munitions Production
The proposed bill’s third-biggest component is Munitions production. The bill provides US$20.4 billion in funding to develop and acquire additional stocks of hypersonic, air-to-air, cruise, anti-ship, ballistic, and anti-radiation missiles; to develop stocks of torpedoes, mines, and underwater explosives; to acquire one-way attack drones; to improve infrastructure and expand capacity in the munitions industrial base; and to expand domestic capacity to mine and refine rare earth elements and critical minerals.
Air Superiority: F-15EX, F-47 To F/A-XX
The bill has earmarked USD 7.2 billion for maintaining air superiority. This money will be spent on the procurement of tactical aircraft, modernizing existing fighter, cargo, tanker, and special-purpose aircraft, preventing the retirement of certain fighter aircraft, and acquiring next-generation manned and unmanned aircraft.
Specifically, USD 3.15 billion is earmarked for increasing F-15EX fighter jet production; USD 361 million for preventing the retirement of F-22 Raptors, USD 127 million for postponing the retirement of F-15E fighter jets, USD 50 million for enhancing F-16 electronic warfare capability; and USD 678 million to accelerate the Collaborative Combat Aircraft program.
The bill also proposes USD 400 million to accelerate production of the F–47 aircraft, the US’s next-generation fighter aircraft program recently awarded to Boeing. The US Navy received US$500 million to advance its sixth-generation fighter jet program, the F/A-XX, for aircraft carrier operations.
The bill also includes US$13.5 billion for “innovation,” US$12.9 billion for nuclear deterrence, US$11.5 billion for military readiness, US$11.1 billion for Pacific deterrence amid rising tensions with China, US$5 billion for border security, US$4.5 billion for the B-21 bomber, US$2 billion for military intelligence, and US$380 million for the Pentagon’s annual audit.
Overall, the bill represents the defense priorities under the new Trump administration. The HASC will take up the bill in a marathon markup session on April 29, which will also allow the Democrats to amend it before it is sent to the House Budget Committee.
- Sumit Ahlawat has over a decade of experience in news media. He has worked with Press Trust of India, Times Now, Zee News, Economic Times, and Microsoft News. He holds a Master’s Degree in International Media and Modern History from the University of Sheffield, UK.
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