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Breaking down potential winners and losers from a Pentagon spending boom
['Daily Report Staff']
Baton Rouge Business Report
Congress is considering a significant increase in U.S. defense spending, with President Donald Trump requesting a $1.5 trillion Pentagon budget for 2027, and the House and Senate are considering proposals that would raise base defense spending to about $1.15 trillion, Louisiana Illuminator reports.
Supporters argue that increased defense spending would strengthen national security, expand the defense industrial base, support military communities and create jobs.
However, experts caution that the economic benefits are concentrated in a relatively small number of states and communities.
Critics also argue that defense spending should not be used as an economic development strategy, noting that investments in areas such as education and healthcare often produce greater economic returns.
They also question whether higher military spending improves military readiness, citing the F-35 fighter jet program, which has experienced rising maintenance costs and declining mission-capable rates despite continued investment.