Marketplace Morning Report Digging in to defense spending
Jan 26, 2026
A deep dive into how Pentagon funding is being reshaped and a look at a huge $156 billion boost to military spending. A conversation about new missile defense projects and broad future plans for defense. Analysis of yen moves and how Japan’s actions could influence U.S. Treasury markets. Reports on travel chaos, heating oil price jumps, and extreme weather disruptions.
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Defense Budget Bigger Than It Looks
- The Pentagon appropriation is $839 billion but that alone understates total military funding this year.
- Added funding from the One Big Beautiful Bill Act pushes total defense spending closer to nearly $1 trillion.
Where Defense Dollars Flow
- Major components of Pentagon spending are operations and maintenance, personnel, and procurement.
- The One Big Beautiful Bill Act and proposed future plans (like a $1.5 trillion request) drive further increases in weapons and shipbuilding costs.
Supplementals Fund New Programs
- The One Big Beautiful Bill Act included about $156 billion for the Defense Department and roughly $25 billion for a proposed Golden Dome missile defense start.
- That funding acted as a down payment on new Trump administration priorities like missile defense.