Defense Industry (Raytheon/RTX)

President Trump warned he could cut Raytheon out of Pentagon contracts unless the defense contractor ends stock buybacks and boosts investment in plants and equipment. He made the threat while proposing a $1.5 trillion FY2027 defense budget — up from $901 billion in 2026 — saying higher defense spending, which he framed as building a “Dream Military,” would be tied to increased tariff and excise tax revenues (Bipartisan Policy Center: $288.5 billion in 2025 vs. $98.3 billion in 2024).