US President Donald Trump has proposed a huge increase in defence spending, alongside a 10% cut in non-defence spending, for the 2027 fiscal year.
The plans, which require congressional approval, would see the defence budget rise by $500bn, reaching around $1.5trn.
The White House likened the requested funding boost, which will include a 5-7% pay raise for military personnel, to the "historic increases just prior to World War II".
Mr Trump's spending proposals come as the US war against Iran, which has caused soaring gas prices, enters its sixth week.
The Pentagon had already requested $200bn (£151.49 bn) in extra funding to pay for the Iran conflict, but the White House has not officially made that request to Congress.
The request includes funding for the Golden Dome missile defence shield, and 34 new combat and support ships.
Initial funding for the US president's 'Trump class' battleships would also be included in the defence hike.
Republican US Senator Roger Wicker, chairman of the Senate Armed Services Committee, and Republican US Representative Mike Rogers, chairman of the House Armed Services Committee, both welcomed the announcement.
In a joint statement, the two men said, "America is facing the most dangerous global environment since World War II," and that the funding would "ensure our military remains the most advanced in the world".
However, top congressional Democrats said the president's defence-heavy proposal was "dead on arrival".
"It's just an out-of-touch plea for more money for guns and bombs, and less for the things people need, like housing, healthcare, education, roads," Oregon Senator Jeff Merkley, the top Democrat on the budget committee, said in a statement.
NATO leaders agreed at a summit last year to spend 5% of GDP on defence and related investments by 2035.
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The budget also includes proposed cuts to the US agriculture department and health and human services department.
Sky News reported that Mr Trump has also proposed cutting NASA's budget by $5.6bn, almost a quarter of its entire budget.
(c) Sky News 2026: Trump proposes 'historic' $1.5trn defence budget
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