White House proposes nearly $900bn in US defence and security spending

US President Joe Biden has unveiled a budget proposal that seeks $895 billion in military and national security spending.

This would take the budget to its highest level ever, but would also be a smaller increase than in previous years.

The request includes $45 billion for homeland security and nuclear weapons-related activities carried out by the Department of Energy.

It is the result of a two-year deal struck last year that limited the budget to a 1 per cent increase.

The budget asks for a 4.5 per cent pay rise for troops, but also trims costs by retiring older weaponry – including ships and aircraft – that are more expensive to operate.

Under the plan unveiled on Monday, 10 ships would be retired before the end of their scheduled service life. These include two littoral combat ships – small surface vessels designed for near-shore operations – that have underperformed expectations.

Last spring, before the cap was put in place, the Pentagon had estimated it would need about $880 billion next year, and the total national security budget would be $929 billion.

Because of the cap, this has been downsized.

“This request will bolster our ability to defend our country, paced to the challenge posed by an increasingly aggressive People’s Republic of China,” said Defence Secretary Lloyd Austin.

“It will better posture us to deter aggression against the United States, or our allies and partners, while also preparing us to prevail in conflict if necessary.”

The Biden administration is also seeking $4 billion over five years in mandatory funding to outcompete China, a top State Department official said.

This includes $2 billion to create an international infrastructure fund to provide an alternative to Chinese infrastructure funding, said deputy secretary of state for management and resources Rich Verma.

The other $2 billion was earmarked for “game-changing investments” to help Indo-Pacific countries push back against “predatory efforts”. These would include efforts to improve governance and the rule of law, Mr Verma said.

US funding in developing countries has been dwarfed by China’s Belt and Road Initiative to build infrastructure and energy networks connecting Asia with Africa and Europe.

The budget asks for a 4.5 per cent pay raise for troops, but also trims costs by retiring older ships and aircraft