Military funding bill enhances soldier wages, housing aid, yet decreases benefits for service members and veterans
The U.S. Department of Defense (DoD) is set for a significant funding increase in the 2026 fiscal budget, following the approval of a bipartisan reconciliation bill known as the “One Big Beautiful Bill Act.” Signed into law by President Donald Trump on July 4, 2025, the package supplements the Pentagon's base budget, which was requested at $848 billion (a real cut when adjusted for inflation).
The $150 billion funding surge brings total military funding close to $960 billion and supports a wide range of priorities, including shipbuilding, missile defense, munitions, and quality-of-life improvements for military families and veterans.
### Impact on Shipbuilding and Missile Defense
The bill allocates $29 billion to shipbuilding and maritime industrial base needs, enabling the Navy to afford 16 ships requested in the fiscal 2026 plans, including two Arleigh Burke-class destroyers and a Virginia-class submarine. This injection supports expanded naval capacity and industrial base resilience.
$25 billion is dedicated to the Golden Dome homeland missile defense program, one of the Trump administration’s signature defense priorities, with an estimated total cost of $175 billion. This funding aims to enhance domestic missile shielding capabilities significantly.
### Other Defense Investments
The bill also includes provisions for munitions restocking, technology advancements, nuclear modernization, and bolstered air and space capabilities. $25 billion is aimed at restocking precision weapons and munitions across various programs, vital for maintaining warfighting readiness in ongoing and future conflicts. This also includes investments in critical minerals supply chains necessary for advanced weapons manufacturing.
Funding for the Strategic Capabilities Office was increased to $600 million to foster next-generation defense technologies, while $16 billion is set to accelerate drone development, AI, and low-cost weapon systems. $15 billion is allocated toward modernizing nuclear capabilities, including programs to speed delivery systems for nuclear weapons.
$12 billion addresses Indo-Pacific deterrence needs and military space capabilities, including the X-37 space plane and space satellites. $9 billion supports air superiority programs, including long-range strike aircraft efforts by both the Air Force and Navy.
### Quality-of-Life Improvements and Social Safety Nets for Military Families and Veterans
While the primary focus of the $150 billion is on defense capabilities and modernization, the reconciliation bill also includes provisions enhancing social safety nets for military families and veterans. This includes health care expansions, benefits, and support systems aimed at improving the welfare of service members, veterans, and their families, recognizing that readiness extends beyond just military hardware to the well-being of the people who serve.
### Controversial SNAP Changes
The bill, however, shifts some of the cost for the Supplemental Nutrition Assistance Program (SNAP) from the federal government to the states, potentially straining state budgets and forcing cuts to the program. Over 1.2 million veterans and military families rely on SNAP, and Iraq and Afghanistan Veterans of America (IAVA) stated that cutting SNAP exemptions for veterans is an unacceptable betrayal and that SNAP is a vital lifeline for veterans facing food insecurity.
The bill makes it harder to qualify for SNAP benefits by restoring work requirements for veterans and reducing benefit amounts.
### Other Notable Provisions
The bill also provides $100 million for tuition assistance programs, $62 million to improve staffing levels at Department of Defense child development centers, $10 million to help military spouses with professional licensure costs, and $100 million for child care fee assistance.
In addition, the Defense Department has diverted $1 billion from the Army’s facilities, sustainment, restoration, and modernization (FSRM) account to fund the southern border mission, and the reconciliation bill provides $1 billion to support military activities at the southern border.
Defense officials have stated that unless the President’s tone changes, they will aim for $1 trillion for national defense spending in 2027. The bill covers $590 million for relocation expenses for service members and their families, and the one-time measure temporarily raises the cap on government investment in privatized military housing projects to 60%.
The Pentagon's budget is set to increase by $150 billion after Congress approved the reconciliation bill, transforming the 2026 DoD budget by substantially supplementing base defense funding. This surge enables accelerated shipbuilding, enhanced missile defense via the Golden Dome project, replenishment of munitions stockpiles, advancements in technology like AI and drones, nuclear modernization, and bolstered air and space capabilities. Additionally, the bill incorporates significant quality-of-life and social safety program improvements for military families and veterans, underlining a comprehensive approach to national defense and personnel welfare.
The increased $150 billion funding will not only boost shipbuilding and missile defense, specifically affording the requested 16 ships and enhancing the Golden Dome homeland missile defense program, but also reimagines the federal workforce as it provides $62 million to improve staffing levels at Department of Defense child development centers and $10 million to help military spouses with professional licensure costs. Investments in science and health-and-wellness for military families and veterans are prioritized, with provisions for health care expansions, benefits, and support systems aimed at improving their welfare.
