Key Points
House Republicans approve $1.072 trillion defense bill, largest in U.S. history.
$234 billion increase over 2026 includes 5-7% military pay raises.
Bill grants Hegseth $1 billion in discretionary Pentagon cuts without congressional approval.
Trump demands $350 billion reconciliation package to push total defense spending toward $1.5 trillion.
House Republicans approved a $1.072 trillion defense budget for fiscal 2027 on June 11, marking the largest defense spending bill in U.S. history. The bill includes a $234 billion increase over 2026 and backs military pay raises of 5% to 7%. Republicans also met with Defense Secretary Pete Hegseth to discuss Trump’s broader $350 billion reconciliation package, which would push total defense spending toward $1.5 trillion.
Record Defense Spending Clears House Panel
The House Appropriations Defense Subcommittee approved the $1.072 trillion bill on June 11 during a closed markup. The measure matches the Trump administration’s request and represents the largest defense appropriation ever passed. Enlisted troops at ranks E-1 through E-5 would receive 7% pay raises, while senior officers would get 5% increases. Defense Department civilian employees would not receive raises under the bill.
Hegseth Gains Broad Authority Over Pentagon Cuts
The bill grants Defense Secretary Pete Hegseth authority to cut $1 billion from across the Pentagon without consulting Congress. Republicans justify the provision by citing potential savings from artificial intelligence tools. House Republicans met privately with Hegseth on June 11 to align on Trump’s spending demands and reconciliation strategy.
Domestic Programs Face Steep Cuts
Republicans propose nearly $13 billion in cuts to domestic programs supporting working families amid the cost-of-living crisis. The bill also abandons funding for Ukraine’s Security Assistance Initiative and allows the administration to reduce U.S. forces in Europe. Democrats on the subcommittee criticized the spending priorities as out of balance.
Path to $1.5 Trillion Defense Budget
Trump demanded Congress pass a $350 billion reconciliation bill alongside the base defense appropriation, which would push total defense spending to roughly $1.5 trillion when combined. Republicans are divided on using reconciliation again so soon, with some warning against making it a routine partisan tool. The Senate panel has already approved renaming the Department of Defense to the Department of War as part of broader Trump administration priorities.
Final Thoughts
The $1.1 trillion defense bill clears a major hurdle, but faces a divided GOP on Trump’s $350 billion reconciliation demand. With military pay raises and broad cuts to domestic programs, the spending shift signals Republicans’ defense-first agenda heading into 2027.
FAQs
The 2027 bill provides $1.072 trillion, representing a $234 billion increase from the 2026 enacted level of $838 billion.
Enlisted personnel E-1 through E-5 receive 7% raises, mid-level and senior enlisted receive 6%, and officers receive 5% to 6% based on rank.
Defense Secretary Hegseth gains authority to cut $1 billion from Pentagon spending without Congressional consultation, citing artificial intelligence savings.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Huzaifa Zahoor
Co FounderHuzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.
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