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Defence & Security15 Oct 2026 · about 6 min

Hegseth calls US$1.5 trillion defence budget ‘critical’ to counter China

The brief

The nearly US$1.5 trillion request is a record-breaking US defence budget proposed for rebuilding the military. Pete Hegseth called it an absolutely critical, one-time generational investment. Washington says the money is needed because adversaries, especially China, are rapidly modernising their armed forces. A major focus is autonomous warfare. The request includes US$54.6 billion for the Defence Autonomous Warfare Group, which coordinates, tests and integrates autonomous weapons across military domains. It also includes US$39.2 billion for autonomous systems, production capacity and advanced capabilities, plus US$14.4 billion for counter-unmanned systems. The plan also supports Project Agincourt, a proposed four-star Autonomous Warfare Command and the purchase of a million drones. Hegseth said the investment should rebuild the joint force and strengthen deterrence. The administration views spending now as important for military capabilities that could shape competition for decades.

01

What is the nearly US$1.5 trillion US defence budget request, and what is it intended to pay for?

The nearly US$1.5 trillion request is a record-breaking US defence budget proposed for rebuilding the military. Pete Hegseth called it an absolutely critical, one-time generational investment. Washington says the money is needed because adversaries, especially China, are rapidly modernising their armed forces.

A major focus is autonomous warfare. The request includes US$54.6 billion for the Defence Autonomous Warfare Group, which coordinates, tests and integrates autonomous weapons across military domains. It also includes US$39.2 billion for autonomous systems, production capacity and advanced capabilities, plus US$14.4 billion for counter-unmanned systems.

The plan also supports Project Agincourt, a proposed four-star Autonomous Warfare Command and the purchase of a million drones. Hegseth said the investment should rebuild the joint force and strengthen deterrence. The administration views spending now as important for military capabilities that could shape competition for decades.

02

How large is the planned increase for autonomous warfare, and how does the US$54.6 billion request compare with the previous year’s US$225.9 million?

The Pentagon has requested US$54.6 billion for the Defence Autonomous Warfare Group in the 2027 budget. The article describes this as an almost 24,000 per cent increase from the previous year’s US$225.9 million allocation. The scale shows how sharply Washington is prioritising autonomous warfare.

The money is divided between two main areas. US$39.2 billion would support multi-year procurement of autonomous systems, domestic production capacity and advanced capabilities. Another US$14.4 billion would fund counter-unmanned systems development and deployment. US$53.6 billion would come through the US$350 billion reconciliation package, with US$1 billion in the base request.

This increase is intended to accelerate testing, integration and production across military domains. It also supports the planned Autonomous Warfare Command and the administration’s goal of acquiring a million drones. The spending reflects concern about China’s growing drone and autonomous-systems capabilities.

03

What are Project Agincourt and the proposed Autonomous Warfare Command supposed to do?

Project Agincourt is the Pentagon’s initiative to speed up drone and autonomous warfare capabilities. Hegseth called it the end state of the administration’s work since day one. It builds on the earlier Replicator initiative and the Drone Dominance Programme started in 2025.

A central part of the plan is creating a four-star Autonomous Warfare Command by October 1, 2027. The command is intended to provide a dedicated structure for developing and organising autonomous military capabilities. The Defence Autonomous Warfare Group already coordinates, tests and integrates autonomous weapons across military domains.

The wider effort is backed by a major budget increase and a proposed purchase of a million drones. It also includes investment in autonomous systems, domestic production and counter-unmanned systems. The stated aim is to rebuild the military around newer technologies and reestablish deterrence as China modernises its forces.

04

Why does the US see China’s military modernisation—especially its drones, satellites, AI and autonomous systems—as a strategic challenge?

The US sees China’s military modernisation as a strategic challenge because Beijing is advancing across several connected technologies. Its 2026–2030 five-year plan prioritises intelligentised warfare, including artificial intelligence, unmanned systems, autonomous systems and networked information infrastructure.

The article gives several examples. China is the world’s largest drone exporter, while satellite analysis suggests the PLA has converted more than 200 obsolete J-6 fighters into attack and cruise-missile-like drones. Air Force Secretary Troy Meink also said China uses low Earth orbit satellites to target US weapons systems, creating leverage over Washington.

These developments raise questions about whether US forces can survive and operate across different domains. They are driving the administration’s push for more drones, autonomous systems, counter-unmanned capabilities and domestic production. Washington wants to reduce vulnerabilities while preventing China from turning its current technological progress into a lasting military advantage.

05

What could happen to the balance of military power if one country gains a lasting lead in AI, robotics and autonomous weapons?

The central consequence is a widening military gap. Hegseth said that whoever is ahead in autonomy, robotics, space and artificial intelligence will get much further ahead. He also warned that whoever is behind will fall even further behind. The concern is that early technological advantages could compound over time.

The budget response shows how Washington intends to prevent that outcome. The Pentagon wants to spend US$54.6 billion on its Defence Autonomous Warfare Group, including funding for autonomous systems, production capacity and counter-unmanned systems. Hegseth also defended plans to acquire a million drones.

The article links this urgency to China’s military build-up and its focus on intelligentised warfare. If one country develops and deploys these systems faster, it could gain an advantage in surveillance, targeting, survivability and scale. Hegseth said investments made now could ripple across the joint force for decades.

06

How does the budget-reconciliation process allow a large US defence increase to pass the Senate with a simple majority?

Budget reconciliation is a legislative process that allows certain budget measures to pass the US Senate with a simple majority. The usual Senate threshold is 60 votes, so reconciliation lowers the number of votes needed. That makes it easier for the governing side to advance spending legislation without broad Democratic support.

The Trump administration has repeatedly used reconciliation to secure increases in defence spending. In this case, US$53.6 billion of the Defence Autonomous Warfare Group’s funding was allocated through the US$350 billion reconciliation package. The remaining US$1 billion was included in the base request.

Hegseth defended the process as a way to supercharge the planned Autonomous Warfare Command and rebuild the military. The approach helped support the broader, nearly US$1.5 trillion defence request. It also provided a route for rapidly increasing funding for drones, autonomous systems and counter-unmanned capabilities.

07

What are autonomous weapons, and how do AI and robotics allow military systems to detect, decide or act with less direct human control?

Autonomous weapons are military systems designed to detect, assess or act with limited direct human control. They can combine sensors, software and robotic platforms to respond to information from their surroundings. The article places them within a wider group of autonomous systems, unmanned vehicles and AI-enabled capabilities.

AI can process large amounts of information, identify patterns and support decisions about what a system is observing. Robotics provides the physical ability to move, fly, navigate or carry out an action. Together, these technologies can help systems operate across air, land, sea, space or cyberspace with fewer continuous human inputs.

The article does not provide a technical definition or describe specific rules for human control. It does show the US planning to coordinate, test and integrate autonomous weapons across all military domains. Project Agincourt, the proposed Autonomous Warfare Command and major drone funding are intended to accelerate that effort.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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