President Donald Trump released his 2019 budget proposal this Monday, in which he called for both cutting domestic programs and projects deficit in the next decade, and increasing spending on military and border security largely.
The military budget, which is the largest since 2011 and $74 billion more than the military budget in prior fiscal year, would provide the Pentagon $617 billion and an additional $69 billion to fund ongoing wars in fiscal year 2019. It is mainly focusing on strengthening country's nuclear defenses and, as the documents highlighted, "reversing the erosion of the U.S. military advantage in relation to China and Russia."
Funds for the maintenance of nuclear arsenal also increased. There was an additional $30 billion for non-defense agencies including Department of Energy, which maintains the nuclear weapons of this country. At the same time, National Nuclear Security Administration, a semi-autonomous wing of the Department of Energy, has also requested $15.09 billion, an increase of nearly $1.2 billion from last year's proposal. The Department of Energy said the money was needed to modernize and restore the country's nuclear weapons complex.
Obviously this increase on military budget will greatly benefit Lockheed Martin Corporation (NYSE: LMT) and the Boeing Company (NYSE: BA), two giants in aerospace and defense industry. The Pentagon’s budget request has marked $10.7 billion for the purchase of 77 F-35 fighter jets made by Lockheed Martin, and $2 billion for the purchase of 24 F-18 Super Hornets from Boeing.