US Approves Record $1.15 Trillion Defence Budget; China, Russia, Iran Drive Spending

The US House of Representatives has approved a record $1.15 trillion defence policy bill, underscoring Washington’s shift from isolated regional conflicts to preparing for simultaneous multi-theatre challenges from China, Russia, Iran, and evolving modern warfare dominated by drones, artificial intelligence, and cyber capabilities, according to the legislation.

The National Defense Authorization Act (NDAA) authorises funding and sets defence priorities for the next fiscal year. While Senate approval remains pending, the House passage reflects bipartisan agreement that sustained high military spending is essential amid an increasingly volatile global security environment.

China remains the Pentagon’s primary long-term concern, repeatedly described as the “pacing challenge” whose military modernisation will shape US force planning for decades. Beijing has rapidly expanded its navy, developed advanced hypersonic missiles, strengthened cyber and space warfare capabilities, and intensified military pressure around Taiwan. In response, the US has stepped up investments in long-range missiles, submarine production, next-generation fighter aircraft, unmanned systems, missile defence, and artificial intelligence.

The Russia-Ukraine war continues to drive significant defence expenditure. Since Russia’s 2022 invasion, the United States has committed tens of billions in military assistance, replenished its own stockpiles of missiles and ammunition, and accelerated production of artillery shells, air defence systems, and precision-guided weapons. This reflects a broader shift in American defence strategy toward peer-state competition rather than counterinsurgency operations in low-intensity theatres.

Instability in West Asia has further pressured American forces. The Israel-Hamas conflict, attacks by Iran-backed armed groups, Houthi strikes on commercial shipping in the Red Sea, and direct military exchanges involving Iran have forced Washington to maintain additional naval and air assets in the region. The timing of the House approval is particularly significant as the United States remains deeply involved in ongoing conflict with Iran, having deployed additional aircraft carrier strike groups, fighter squadrons, bombers, missile-defence systems, and thousands of troops across the Middle East.

The Pentagon’s long-standing objective of deterring or responding to multiple major conflicts simultaneously has been reinforced by these overlapping crises. The defence bill addresses sustained expenditure on precision-guided munitions, air-defence interceptors, logistics, and force protection while raising concerns about the Pentagon’s capacity to sustain operations across multiple theatres without compromising global military posture.

For India, America’s elevated defence spending and strategic reorientation toward great-power competition in the Indo-Pacific underscores the importance of New Delhi’s own defence modernisation and partnerships through frameworks like the Quad. India’s air force modernisation programmes, including indigenous fighter development and enhanced air defence systems, occur within this broader context of Indo-Pacific strategic competition and the imperative for credible deterrence against multiple potential adversaries.