Latest news with #defensespending
CNN
21 hours ago
- Business
- CNN
UK to build new attack submarines and ramp up ‘war-fighting readiness' with an eye on Russia, Starmer says
Britain will build new attack submarines, invest billions on nuclear warheads and move towards 'war-fighting readiness,' Prime Minister Keir Starmer said Monday, as he braces for a landmark report into the state of the country's military. Starmer's government said it would build 'up to' 12 new attack submarines as part of its AUKUS partnership with the United States and Australia, replacing the country's current class of seven subs from the late 2030s. And he will launch a 'historic renewal' of the UK's nuclear deterrent backed by a £15 billion ($20.3 bn) investment, Starmer said in a speech in Scotland on Monday. The announcements come as a long-awaited review into Britain's armed services is published Monday. Experts have been calling for a modernization of Britain's armed services for decades, cries that have grown in volume since Russia's invasion of Ukraine three years ago. 'When we are being directly threatened by states with advanced military forces, the most effective way to deter them is to be ready, and frankly, to show them that we're ready to deliver peace through strength,' Starmer said Monday. But Starmer refused to set out the timeline for his pledge that Britain's overall defense spending would hit 3% of the UK's gross domestic product (GDP). The uplift, announced earlier this year, is set to be reached by the end of the next parliament in 2034, but is dependent on economic conditions. And the prime minister did not set out where the money to pay for the new weaponry will come from; he previously announced cuts to the UK's aid budget to fund the uplift in defense spending, and he declined to rule out similar moves on Monday. The fiscal promise from the UK falls short of defense spending promises from some NATO countries, whose spending has been closely scrutinized by US President Donald Trump. NATO's Secretary General Mark Rutte said last month he 'assumed' NATO members will agree on a defense spending target of 5% at June's NATO summit, a significant increase from the 2% benchmark, which was agreed to in 2014. Per 2024 NATO data, only Poland's defense expenditure was above 4% of GDP, although Latvia and Estonia had promised increases to 5%, with Italy promising a hike to between 3.5 and 5% of GDP. The US' defense expenditure sat at 3.38% of GDP in 2024, making up some 64% of total NATO expenditure. Russia's invasion of Ukraine – and the subsequent pressure from Trump's administration on European nations to boost their own military capabilities – has sparked a race among Europe's key military powers to boost their readiness and counter the Russian threat should the White House pull its support for Kyiv. The UK 'cannot ignore the threat that Russia poses,' Starmer told the BBC on Monday. 'Russia has shown in recent weeks that it's not serious about peace, and we have to be ready.' Starmer said Monday he intended to turn the UK into a 'battle-ready, armour-clad nation with the strongest alliances, and the most advanced capabilities, equipped for the decades to come.' Alongside the promised submarines, Starmer said that a 'hybrid Royal Navy' will patrol the North Atlantic — a key transit route for Russian submarines to reach the eastern US seaboard — signalling a move to more drone-based naval capabilities. The review, commissioned by his government and led by former NATO chief George Robertson, is expected to highlight a number of emerging threats, such as drone warfare, in which Britain is falling behind. Given decades of shrinking investment in the British military, questions have been raised over the deterrence that Britain's conventional and nuclear weapons offer, particularly given its reliance on a US supply the last eight years, the UK has publicly acknowledged two failed nuclear missile tests, one of them in the waters off Florida, when dummy missiles didn't fire as intended.
Yahoo
3 days ago
- Business
- Yahoo
Trump administration unveils more detailed proposal for steep 2026 spending cuts
The Trump administration on Friday unveiled more details of the president's vision for how to fund the government in fiscal year 2026, expanding on its request earlier this month for steep spending cuts. The lengthy budget appendix, which stretches to more than 1,200 pages, comes as Republicans in both chambers have pressed the administration for more information about the president's proposed funding cuts. President Trump is calling for more than $160 billion in cuts to nondefense discretionary spending — amounting to about 22 percent — while requesting a boost to defense dollars. While presidential budget requests aren't signed into law, they can serve as a blueprint for lawmakers as they begin crafting their funding legislation. House appropriators will take up the first set of funding bills next week, with subcommittees on military construction, the Department of Veterans Affairs, rural development, and the Department of Agriculture set to meet to consider the proposals on Thursday. The White House rolled out Trump's so-called skinny budget about a month ago. It ran 46 pages, and it's not unusual for presidents to first roll out shorter versions of their proposals before releasing more details. But GOP appropriators said they needed more information about the president's funding wishlist, and budget hawks grumbled at the time about key details missing. 'There needs to be a lot more programmatic detail to write these bills to,' Cole told The Hill ahead of the current congressional recess. 'Their skinny line budget is just that. It's not a full presidential budget.' 'We will just do a better job for them,' Cole said at the time, if appropriators have more guidance from the administration. The documents released Friday build upon the cuts outlined in Trump's earlier request, which called for double-digit cuts for a list of agencies including the departments of Agriculture, Education, Housing and Urban Development, Labor, and State. The administration is also pushing for Congress to put dozens of programs on the chopping block, including the Low Income Home Energy Assistance Program, Job Corps, the Community Development Block Grant program and the Corporation for Public Broadcasting. However, the administration noted that, for defense programs, the document only contained appropriations language and that a 'separate document containing budget estimates for the Department of Defense will be published in June 2025.' It also said 'mandatory spending and receipts proposals in this document are limited to those proposals that support the president's 2026 discretionary request.' The forthcoming funding bills from the GOP-led House are expected to be more partisan in nature than in the Senate, where Democratic votes will be needed to get annual funding legislation across the The bills from the GOP-led House are expected to be more partisan in nature than in the Senate, where Democratic votes will be needed to get annual funding legislation across the floor. Democrats have already come out in strong opposition to the president's budget request. And there are serious trust issues in the party about eventual negotiations with Republicans on fiscal year 2026 funding as the administration has undertaken a sweeping operation to shrink the size of the government without buy-in from Congress. 'This is a draconian proposal to hurt working people and our economy, and it is dead on arrival in Congress as long as I have anything to say about it,' Sen. Patty Murray (Wash.), top Democrat on the Senate Appropriations Committee, said in a statement Friday. 'This is not a complete budget,' Rep. Rosa DeLauro (Conn.), top Democrat on the House Appropriations Committee, also said Friday. 'We are supposed to start putting together the funding bills for 2026 next week. If, as expected, House Republicans follow what President Trump has proposed so far, it is not a serious effort to deliver for the American people.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Independent
6 days ago
- Business
- The Independent
NATO set to commit to five percent defense spending goal amid threats from Trump
NATO Secretary General and former Dutch Prime Minister Mark Rutte has said that he believes that the alliance will commit to a new defense spending goal of five percent of GDP at its next summit in June. "I assume that in The Hague we will agree on a higher defense spending target of in total five percent," he said at the NATO Parliamentary Assembly in Dayton, Ohio, Politico noted. The expected measure comes after months of pressure from President Donald Trump. Earlier this year, the commander-in-chief warned that NATO allies would put American protection at risk if members did not increase their own military spending. Many allies rejected the notion at the time as mere political noise. But tensions in Europe 's relationship with Russia have increased, the discussion has shifted, with a greater focus on European military readiness. A rising number of leaders are backing the new goal, a significant jump from NATO's current two percent of GDP target. Dick Schoof said earlier this month that Rutte, his predecessor in the role as Dutch prime minister, wrote to NATO leaders arguing that they must reach 3.5 percent of GDP on 'hard military spending,' and 1.5 percent of GDP on spending connected to 'infrastructure, cybersecurity and other things.' Rutte's comments on Monday were the first time that the secretary general backed the five percent target. The boost would be substantial. No country currently spends 5 percent of their GDP. The U.S. spends about 3.5 percent. Rutte didn't specifically share the makeup of the five percent goal, but noted that the baseline for traditional military spending would be 'considerably north of 3 percent.' He added that further funding would be expected to go toward infrastructure and logistics. The most recent numbers from the alliance reveal that 23 of the 32 member states are on pace to be spending at least two percent by the summer. That's a significant increase since 2014, when the target was set following the initial Russian military activity against Ukraine. At that time, only three members were spending that much. Poland, the top spender in the alliance, spends about 4.7 percent of its GDP. Lithuania and Latvia have said they have plans to hit or go past five percent in the next two years.
Al Arabiya
7 days ago
- Business
- Al Arabiya
Israel's 2026 budget needs balance between defense, civilian spending: Official
Israel's budget deficit for 2026 needs to be no more than 4 percent of gross domestic product, a senior Finance Ministry official said on Tuesday. While the economy is strong and resilient, defense spending is high and risks harming civilian outlays such as in education, health, welfare and infrastructure, said Yali Rothenberg, Israel's Accountant General. A spending balance is needed to 'ensure that defense spending does not overshadow priorities,' Rothenberg said at the Israel Democracy Institute's annual economics conference. Defense spending has jumped since the war began on Oct. 7, 2023 when Hamas gunmen attacked Israel. The budget deficit in 2024 reached 6.9 percent of GDP although it has since eased to 5.1 percent in April. The debt-to-GDP ratio rose 7.7 points last year to 69 percent. 'We need to reduce the debt-to-GDP ratio,' Rothenberg said. 'The year 2026 will be very important - a test year - we need to restore fiscal space and we need a budget for 2026, because a budget creates certainty and we need certainty for all government ministries.' He noted that in cutting the deficit next year to 3-4 percent of GDP, it 'will require difficult decisions; but this is the core of fiscal governance - not just numbers but choosing priorities.' The 2025 wartime budget, which was delayed and approved in March, features a series of tax hikes and spending reductions on non-defense areas aimed at preventing the deficit from becoming unsustainable while Israel finances its military conflict. Rothenberg said additional investments in infrastructure are needed given Israel's high annual population growth, such as more power plants through public-private partnerships.
Yahoo
22-05-2025
- Business
- Yahoo
Trump's 'Big Beautiful Bill' Advances: Here's Who Wins And Loses
President Donald Trump's sweeping legislative package is, as expected, divisive. Republicans are pitching it as 'One, Big Beautiful Bill.' Democrats are calling it 'one big beautiful betrayal.' Here's a look at some of the bill's key elements. The Winners: The bill seeks to extend The Tax Cuts and Jobs Act (TCJA) of 2017. That means the expiring provisions that benefit high-income and wealthy earners would be permanent. It also seeks to eliminate federal taxes on tips and overtime pay, fulfilling some of Trump's campaign promises. The tax breaks would reduce revenue by $4.9 trillion over the decade, but increase spending on military, defense and border security. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — So, if legislators sign the bill into law, major U.S. defense contractors like RTX Corp. (NYSE:RTX) and Lockheed Martin Corp. (NYSE:LMT) could benefit from increased defense spending. Other companies exposed to the defense sector including Palantir Technologies, Inc. (NASDAQ:PLTR) and Booz Allen Hamilton Holding Corp. (NYSE:BAH) could also benefit from increased military and defense spending. The Losers: The cost of the tax bill will be partially balanced with new taxes on private university endowments and significant cuts to programs like Medicaid. Stocks of major Medicaid managed care organizations could be vulnerable to enrollment volatility and premium pricing challenges if the changes are approved. Investors would be wise to monitor UnitedHealth Group, Inc. (NYSE:UNH), Centene Corp. (NYSE:CNC) and Elevance Health, Inc. (NYSE:ELV) as the bill moves through Congress. Low-income Americans who rely on food assistance should also take note. House Republicans are proposing major changes to the Supplemental Nutrition Assistance Program, or SNAP. The program aids over 42 million Americans. The bill would shift 5% of benefit costs and 75% of administrative costs to states, up from the current 50% share for administration only. It also seeks to expand work requirements to recipients up to age have criticized the move as harmful to families, while Republicans say it promotes work and cuts waste. The House Agriculture Committee has already approved $300 million in SNAP cuts to help fund tax breaks. If the legislative package is passed, it would also be the end of many clean energy initiatives and key tax credits and would impose new fees on electric vehicles. These changes could slow the growth of the clean energy sector and make electric vehicles and renewables less competitive compared to traditional energy sources. Clean energy stocks including Enphase Energy, Inc. (NASDAQ:ENPH), First Solar, Inc. (NASDAQ:FSLR) and Sunrun, Inc. (NASDAQ:RUN) were all sharply lower on Monday as investors digested the potential effects on the industry. The 1,116-page bill also wouldn't quell fears about America's public debt, which currently stands at $36 trillion. According to the nonpartisan watchdog group, the Committee for a Responsible Federal Budget, the bill adds approximately $3.3 trillion to the national debt over the next ten years. What's Next: After advancing out of the House Budget Committee in a rare Sunday meeting by a narrow 17-16 vote, Trump's 'One Big, Beautiful Bill' faces several key steps before it can become law. The next stop is the House Rules Committee, which will meet midweek to set the terms for floor debate, consider possible amendments, and make any necessary last-minute adjustments to the bill before it heads to a full vote on the House floor. If the bill passes the House, it will move to the Senate where it may face additional challenges, as Republican senators are also seeking changes that could complicate final passage. Further changes to the bill are possible as leaders work to secure enough support from both conservative and moderate factions. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum. Photo: Shutterstock Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Trump's 'Big Beautiful Bill' Advances: Here's Who Wins And Loses originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
