Defense and aerospace

The administration asked for $1.5 trillion for national defense in FY2027, made up of $1.15 trillion in base discretionary funding and $350 billion in mandatory money to be passed through reconciliation, and most of Golden Dome's 2027 funding sits in the reconciliation tranche (CSIS; Federal News Network). The government has been funded by a continuing resolution since 1 October. Defense Secretary Hegseth faces eight articles of impeachment filed by Representative Massie on 15 September 2026, accusing him of violating the War Powers Resolution in the Iran war, of illegal military campaigns in Venezuela, Yemen, the Caribbean and the eastern Pacific, and of disregarding the protection of civilians (Roll Call).

The new majority's power of the purse matters most for defense. The $350 billion reconciliation request depended on a party-line vote that will not exist after 3 January, so Republicans must pass it in the lame duck or lose it, and the short post-election calendar makes that difficult (CSIS). If they fail, the base request becomes the ceiling, and Democrats are likely to cut it and attach conditions on Iran operations, domestic deployments and Golden Dome milestones. They are unlikely to cut off funds for forces in the field during an active conflict. Adam Smith, in line to chair House Armed Services, may revive a subcommittee dedicated to Pentagon oversight (Politico). The House impeachment vote on Hegseth, which the Republican majority can table, is the first test of how many Republicans will break with the administration.

The president keeps command of forces, the decision to use them, and the conduct of foreign military sales. Congressional review of arms sales becomes more meaningful, because a Democratic Senate Foreign Relations Committee can place informal holds and force votes on resolutions of disapproval, which still face a veto. Prime contractors fell on 4 November: Northrop Grumman lost 2.7% and RTX, Lockheed Martin and L3Harris more than 2% each, as analysts marked down the chance of a full $1.5 trillion (Reuters).

The likely path is a smaller top line than requested and a slower Golden Dome, with munitions, shipbuilding and air defense protected because both parties have watched the Iran war and the war in Ukraine draw down Patriot and other interceptor stocks. Allied demand for US systems in Europe, the Gulf and Asia will keep order books full whatever Congress does. Newer entrants that depend on large new programs, rather than on replenishment, carry more budget risk than the primes.