Trump Advocates for Increased Military Spending Against Musk’s Massive Cost Cuts

President Donald Trump is advocating for increased military funding, even as his close ally Elon Musk pushes for sweeping federal budget cuts and a Pentagon audit.

In a taped interview with Fox News' Bret Baier aired this morning, Trump emphasized his intention to boost defense spending but noted that any decision would follow discussions with Chinese President Xi Jinping and Russian President Vladimir Putin:

“We want to raise defense spending. I think we have to have it.”

He criticised current expenditures on idle weaponry, calling them “crazy,” and said:

“One of the things I’ll be doing with President Xi and with Putin and everybody else is saying, let’s ease up on all this, you know, building all of this, you know, the bombs.”

D.O.G.E. Targets Defense Expenditure

In 2024, military spending accounted for nearly half of the $1.8 trillion discretionary budget, with the US outspending the next nine countries combined, according to the Peter G. Peterson Foundation.

In response, Musk’s Department of Government Efficiency (D.O.G.E.) was created to slash $2 trillion in federal expenditures—more than the entire discretionary budget for a year.

D.O.G.E. has already targeted agencies like the Consumer Financial Protection Bureau and USAID, freezing operations and sparking legal disputes.

Now, it has turned its focus to the Pentagon, auditing financial systems, employee communications, and payment trails.

Musk, critical of certain weapons programmes, believes many need a complete overhaul or termination to reduce defense spending.

Stalling Budget Slashes

The US deficit reached 6.4% of GDP last year, far exceeding Europe's 3% target.

Economists argue that reducing the deficit could lower bond yields and boost investment.

However, D.O.G.E.'s bold cost-cutting measures have left Wall Street in uncertainty.

Analysts are struggling to model the potential impact, with many acknowledging they cannot predict how D.O.G.E. will influence markets.

A major obstacle is Congress, which holds the power over federal spending.

Both Musk and President Trump face resistance here, as the Republican-majority House and Senate remain divided.

While some Republicans support deep cuts, even in defense, others, including Trump and his vice president J.D. Vance, advocate for increased military funding.

Military spending, deeply tied to various states through bases, contracts, and factories, faces staunch opposition from lawmakers who fear job losses in their districts.

Even those who favour overall spending cuts hesitate when it comes to defense.

Meanwhile, Democrats remain highly critical of D.O.G.E.’s approach.

Treasury Secretary Scott Bessent defended D.O.G.E.’s actions in a Bloomberg interview, but the courts have pushed back:

“This is not some rogue band going around doing things; this is methodical.”

Several of D.O.G.E.'s initiatives, including freezing federal loans and closing USAID, have been blocked by judges.

Interestingly, Federal Judge John McConnell, who ruled to stop D.O.G.E.'s actions, has a daughter, Catherine McConnell, serving as a senior policy advisor at the Department of Education.