On January 12, 2026, Secretary of Defense Pete Hegseth visited Lockheed Martin’s F-35 production facility in Fort Worth, Texas, delivering a pointed message to defense contractors: increase speed, efficiency, and commitment to meet the demands of a rapidly expanding U.S. military. The visit, part of Hegseth’s ongoing “Arsenal of Freedom” tour aimed at revitalizing the nation’s defense industrial base, follows President Donald Trump’s recent proposal for a record $1.5 trillion defense budget in fiscal year 2027—a roughly 50% increase from current levels—and an executive order holding contractors accountable for performance.
This push comes at a time of heightened global tensions and renewed emphasis on military readiness under the Trump administration. The proposed budget surge seeks to build what Trump has described as the “Dream Military,” capable of ensuring U.S. security against adversaries through superior equipment and faster production timelines.
Trump’s Budget Proposal and Funding Rationale
President Trump announced his intention to request $1.5 trillion for defense in 2027 via posts on Truth Social. He described the increase as essential “for the Good of our Country, especially in these very troubled and dangerous times,” enabling the construction of a military that would “keep us SAFE and SECURE, regardless of foe.”
Trump suggested that revenue from tariffs on imports—imposed on countries he accused of previously “ripping off” the United States—would help offset the higher spending. “If it weren’t for the tremendous numbers being produced by Tariffs from other Countries… I would stay at the $1 Trillion Dollar” level, he wrote, noting the unexpected income generated by these measures.
The proposal represents a significant escalation from the approximately $1 trillion defense allocation in recent cycles, including adjustments made by Congress for fiscal 2026.
Criticism of Defense Contractors and New Accountability Measures
Alongside the budget increase, Trump has directed sharp criticism at major defense contractors for what he views as slow production, excessive executive compensation, and prioritization of shareholder returns over investment in manufacturing capacity.
In separate Truth Social posts, Trump called for defense companies to halt stock buybacks and dividend payments, and to cap executive pay at $5 million annually until performance improves. He specifically highlighted RTX (formerly Raytheon), whose CEO earned over $21 million in 2024, accusing the company of operating under a “business as usual” mindset from the prior administration and being among the slowest to fulfill orders.
Trump’s executive order, issued shortly after these statements, directs the Secretary of Defense to implement measures ensuring contractors prioritize production speed and compliance. It includes provisions to prohibit stock buybacks and corporate distributions for underperforming firms, and ties future contracts to performance benchmarks.
A 2023 Defense Department study referenced in related discussions noted that from 2010 to 2019, major contractors allocated more funds to stock buybacks and investor payments than to new factories and expansions, underscoring long-standing concerns about industry priorities.
Hegseth’s Message at Lockheed Martin
During his address at the Fort Worth plant—home to the F-35 Joint Strike Fighter program, one of the largest and most complex defense projects—Hegseth encouraged workers and leadership to “step up” in response to the president’s directives.
“We’re changing the game to incentivize speed, to incentivize efficiency, competition, open architecture, at cost, ensuring that big companies, like this one, and small ones can compete,” Hegseth told employees.
He emphasized the need for an “85% solution” delivered quickly rather than pursuing a “perfect solution” over decades, arguing this approach is critical to outcompeting adversaries. Hegseth framed the proposed $1.5 trillion budget as a clear deterrent: “That is a message to the world.”
Referencing Trump’s recent executive order, Hegseth stated, “The president had put out an executive order just a couple of days ago about how big defense contractors in this country need to step up. And he’s right.” He expressed confidence in Lockheed Martin, saying, “I think and I know and I believe that Lockheed will step up.”
Hegseth stressed prioritizing “warriors” over “Wall Street and dividends and stock buybacks,” and announced plans to compile a list of compliant companies within 30 days. He also highlighted the importance of American manufacturing for national strength: “We live in a realistic world where if you want American strength, you better have American manufacturing.”
Lockheed Martin Aeronautics President Greg Ulmer responded by affirming the company’s dedication: “We have the utmost commitment on your behalf to continue to bring it, to provide for the very best kit, very best product, very best service on behalf of our war fighter.”
The F-35 program has faced historical criticism for delays and cost overruns, but Lockheed recently reported record deliveries and signed a new missile agreement funded in part by company resources for expansion.
