US Taxpayers Face Soaring Military Spending as Trump Pushes for 40% Defense Budget Increase

As millions of Americans rush to file their taxes on Tax Day, a new report reveals that the average US household spent $4,049 on military-related spending in 2025, up from $3,707 in 2024. This increase comes as Donald Trump pushes for a 40% increase in federal defense spending, despite growing concerns over rising living costs and government expenditure.

The report by the Institute for Policy Studies (IPS) thinktank found that military-related spending in 2025 includes about $1,870 going to Pentagon contractors, $770 to military personnel, $130 for nuclear weapons, and $57 for aid to foreign militaries. The spending does not account for the cost of the US-Israeli war with Iran, which began in February 2026 and has already exceeded $11.3bn in the first six days alone.

The IPS report highlights that these enormous sums for the Pentagon and militarism come with enormous costs to ordinary people – both in terms of the opportunity cost for other programs and the drain on their wallets. The analysis is based on an average 'tax filing unit' with a total taxable income of $104,000.

Americans have filed their taxes this year amid growing public concern over cost of living, taxes, and government spending. A recent Fox News poll found that 70% of registered voters surveyed believe their taxes are too high, up 11 points from last year. The same poll also found that 29% of registered voters said they were concerned with 'how the government spends their tax dollars.'

Beyond military spending, the report estimates that $2,492 of the average taxpayer's federal income tax went to Medicaid, $2,207 to Medicare, and $31 to substance abuse and mental health programs. The report also found that the average taxpayer paid about $396 for the Supplemental Nutrition Assistance Program (Snap) and $607 for the Department of Education.

The data has significant implications for the economy, as US inflation surged in March with prices up 0.9% compared with last month and 3.3% over the year, amid the US-Israel war with Iran. The University of Michigan's consumer confidence survey recorded a 10.7% drop to its lowest level on record.