From our Budget Breakdown series highlighting problems in fiscal policy to inform the 2025 tax and budget debate.
Congressional Republicans returned to Washington this week to begin drafting sections of the “big beautiful bill” that contains the bulk of their legislative agenda. One of the first sections to be considered was their plan to increase defense spending by $150 billion over the next ten years. At a time of growing threats from China and Russia, the need for military readiness is clear. Yet this surge in defense funding comes amid a simultaneous push from the Trump administration to dismantle our global commitments, raising the fundamental question: what is the purpose of building up military power if the United States no longer intends to lead with it?
Top Republicans are heralding the proposed defense increase as a “generational upgrade” in our military readiness. While some provisions — such as the billions allocated for the so-called “Golden Dome” — appear to be driven more by Trump’s own personal fascination than strategic necessity, most of the spending increases are serious priorities to improve military readiness and capability. Amongst other worthwhile provisions, their plan earmarks billions for shipbuilding, ramps up munitions production, and scales up innovative commercial technologies for military use. One would reasonably expect that this investment into America’s national security would be used to reinforce our global leadership and international commitments.
But since returning to office, President Trump has done just the opposite, pursuing a chaotic foreign policy of disengagement and signaling that the United States will no longer meet its obligations to its allies and partners around the world. Trump has renewed attacks on NATO, explored reducing U.S. troop levels in both Europe and Asia, and steadily undermined security commitments to allies in Ukraine and Taiwan. His destabilizing trade wars have alienated key economic partners, while his erratic threats to annex Canada, Greenland, and the Panama Canal have only deepened tensions with long-standing allies. Finally, he has gutted vital tools of American soft power, decimating foreign aid and development programs such as USAID, sharply cutting US diplomatic presence in critical regions, and slashing funds for basic scientific research and development. With this chaotic foreign policy, it’s no surprise that global confidence in the United States has plummeted in the past few months.
Military capability is not an end in itself, but rather a tool to execute a broader, coherent strategy. The United States built its post-World War II military and defense posture not to act unilaterally, but to support a system of alliances, deterrence, and collective security that amplifies American power. In the absence of the trust, stability, and strategic advantages that this system provides, hundreds of billions more in defense spending will be far less effective at ensuring national security and advancing American interests. Furthermore, by alienating our allies, Trump is undercutting the military power we can call upon in a crisis — perhaps by more than the spending increases would augment it.
As PPI has previously argued, any greater investment in the U.S. military should go hand-in-hand with revitalizing our alliances, restoring global economic leadership, and strengthening our diplomatic and international development institutions. For all the Trump administration’s talk of cutting wasteful spending, there is no better example of government waste than spending more money on activities from which we intend to benefit less.
During the first quarter of 2025, the economy shrank at a 0.3% annual rate — the largest decline in three years, driven by increased imports and the fear of Trump’s tariffs.
