The U.S. Space Force is set to receive a substantial funding boost under President Donald Trump’s ambitious reconciliation bill. The proposed budget for fiscal year 2026 could reach nearly $40 billion, a remarkable $11.3 billion increase from current levels. This increase comprises $26.1 billion in traditional discretionary funding and an additional $13.8 billion from the reconciliation package.
This “one budget, two bills” approach, as described by defense officials, would mark the most dramatic year-over-year increase for the Space Force. The overall plan is part of a $1 trillion defense strategy, requiring Congress to pass the reconciliation bill by July 4. The Department of Defense would gain a total of $113.3 billion from the reconciliation measure, adding to its existing $848.3 billion discretionary funding.
“The president said he wanted a $1 trillion budget for 2026 so that’s what we did,” a senior defense official stated, highlighting the unusual nature of the request. The Pentagon lacks a “plan B” if the bill fails, emphasizing the reliance on the reconciliation process.
The reconciliation bill, sometimes called the “One Big, Beautiful Bill,” utilizes a process bypassing the Senate filibuster. Beyond defense, it includes investments in border security and other administration priorities, while reducing social safety net program spending. The bill’s 10-year timeframe and mandatory spending classification are unique. “This is the first time the DoD has received mandatory money like this,” the defense official noted, highlighting the increased flexibility.
The Golden Dome missile defense project stands to benefit significantly, receiving $25 billion in allocated funds. This long-term funding provides stability for contractors involved in modernizing the U.S. missile defense system with advanced technologies, including sensor satellites and space-based interceptors. While the long-term implications remain unclear, the official stated, “Those conversations have yet to take place.”
The “one budget, two bills” approach has faced criticism from lawmakers concerned about congressional oversight. Senator Mitch McConnell criticized it as a “shell game,” while Air Force Secretary Troy Meink emphasized the necessity of the funds from both requests. General Chance Saltzman highlighted the urgency of funding for countering China’s growing space capabilities.
The bill’s technical maneuvering classifies the Pentagon funding as “mandatory” spending, enabling fast-tracking through a simple Senate majority vote. An Air Force spokesperson indicated that most of the Space Force’s additional funding would go to Research, Development, Test & Evaluation, with additional funds for procurement. However, Saltzman acknowledged that execution details, including Golden Dome fund allocation, are still being finalized.
The reconciliation bill includes $150 billion in new defense funding, with $113 billion earmarked for the Pentagon’s fiscal 2026 budget.