US President Donald Trump has proposed a $892.6 billion defense budget for the 2026 fiscal year, maintaining a level similar to the current year. The budget request emphasizes increased funding for high-tech missiles and drones, while reducing expenditures on Navy personnel, ships, and fighter jets, including fewer F-35 aircraft purchases. Additionally, Trump has called for a pay raise for US troops. This budget shift reflects a strategic focus on advanced missile and unmanned aerial vehicle capabilities, aiming to modernize the military's technological edge while cutting costs in traditional naval and air assets. Key defense contractors potentially impacted by this budget include BAE Systems, Boeing, General Electric, General Dynamics, Huntington Ingalls Industries, L3Harris Technologies, Lockheed Martin, Northrop Grumman, and Raytheon Technologies. The proposal aligns with broader defense spending adjustments as NATO also raises its defense spending targets.