US Defence Secretary Pete Hegseth on 1 August said the Trump administration is actively working with Congress to secure a $1.5 trillion defence budget, describing the push as a generational investment aimed at modernising the military, expanding domestic arms manufacturing, and reversing a recruitment slump. Hegseth made the remarks during President Donald Trump's Cabinet meeting at Camp David, the first such session to be broadcast live on television.

The Budget Push and What It Covers

Hegseth framed the proposed $1.5 trillion outlay as a structural departure from past Pentagon funding models. “We are committed in working with Congress to get $1.5 trillion. But this is not the same way we’ve funded our department in the past,” he said. The proposal, if approved by Congress, would rank among the largest military spending requests in US history.

A central element of the new approach is the push to draw private capital into defence production. Hegseth said defence contractors have already committed $75 billion in private investment to build new plants, equipment, and assembly lines. “That’s saving taxpayer dollars because the companies themselves are investing,” he said.

Recruitment and Personnel Overhaul

Hegseth credited the removal of diversity, equity, and inclusion (DEI) programmes and what he called ‘social engineering’ from the military for driving what he described as historic re-enlistment and recruitment figures. “When you rip out DEI, when you rip out social engineering and social justice and you put in merit, and then you untie the hands of commanders to enforce discipline and accountability, to get back to basics, then you get historic reenlistment inside our ranks,” he said.

He attributed the uptick in enlistment directly to Trump’s return to office, claiming the trend began on Election Day 2024. “Every month our department breaks records,” Hegseth said, though independent verification of those figures was not provided at the meeting.

Military Operations Cited

Hegseth also referenced a series of military actions conducted under the Trump administration, including operations against the Houthis, strikes targeting Iranian nuclear facilities, and efforts against drug cartels. He praised Trump’s decision-making, describing it as requiring significant political courage.

Trump Reinforces the Message

President Trump, in his opening remarks, echoed the defence spending ambition. “We’re looking forward to getting $1.5 trillion next year… and the good news is all of that equipment is made in the USA,” he said. Trump added that each major defence group was constructing “at least four new massive plants” to accelerate production timelines.

Context and What Comes Next

The proposed budget sits at the centre of the administration’s broader national security agenda, which frames increased military spending as essential to modernising capabilities, expanding domestic manufacturing, and strengthening deterrence against strategic competitors. Congressional approval remains the critical next step, and the scale of the request is expected to face scrutiny from both fiscal conservatives and opposition lawmakers. The Camp David Cabinet meeting also covered foreign policy, healthcare, the economy, and government efficiency, with Trump taking questions on Iran, Ukraine, and the Middle East.