Donald Trump's Golden Dome: The $175-Billion Missile Defence Shield Explained

US President Donald Trump has announced the selection of a design for the ambitious Golden Dome missile defence shield, a project valued at $175 billion. This large-scale initiative, first ordered in January 2025, aims to establish a vast network of satellites to detect, track and intercept missile threats.

The Golden Dome represents a significant step in the evolution of US missile defence strategy, combining cutting-edge space technology with military defence systems.

But what exactly is the Golden Dome, and how is it meant to work? Let’s find out.

The Golden Dome is a proposed US missile defence shield aiming to protect the homeland from missile threats, particularly those from China and Russia. The project envisions a vast network of satellites — potentially hundreds — that would detect, track, and intercept incoming missiles, reported Reuters.

The concept draws inspiration from Israel’s Iron Dome, a land-based missile defence system that protects Israel from rockets and missiles. The Golden Dome is far more ambitious, meant to cover a much larger area with multiple systems working in tandem to identify and neutralise aerial threats. The Independent quoted Wes Rumbaugh, fellow at the Centre for Strategic and International Studies (CSIS), as saying that it “will have to be a lot more comprehensive, with several different systems that can locate, track and stop any kind of aerial attack the US might face.”

The most ambitious element of the Golden Dome is a network of space-based interceptors, such as lasers, to destroy warheads shortly after launch. This approach recalls the ‘Star Wars’ missile defence concept of the 1980s, proposed by then-President Ronald Reagan. The system aims to cover every possible attacker and target with a massive web of interceptors positioned in space, reported The Independent.

President Trump announced the project with an estimated cost of around $175 billion, aiming for it to be operational by January 2029, at the end of his presidential term. 

Experts though, are sceptical about both the timeline and price tag. Reuters quoted Tom Karako from the Center for Strategic and International Studies as saying, “The new datapoint is the $175 billion, but the question remains, over what period of time. It's probably 10 years.”

The Congressional Budget Office projected the cost could reach as high as $831 billion over 20 years.

The Pentagon has begun selecting contractors, with companies like L3Harris Technologies, Lockheed Martin and RTX Corp identified as potential key suppliers. In addition, Elon Musk’s SpaceX is a frontrunner to provide components alongside firms such as Palantir and Anduril. But the procurement process has raised concerns among Democratic lawmakers, particularly over SpaceX’s involvement, reported Reuters.

Funding remains uncertain. While Republican lawmakers have proposed an initial $25 billion investment within a larger $150 billion defence package, the bill faces considerable opposition in Congress.

Experts warn that deploying such a strong missile defence could trigger a new arms race. Michael O’Hanlon of the Brookings Institution said this might provoke adversaries to improve their offensive capabilities, creating a cycle that makes the US “less secure and certainly more impoverished,” according to The Independent.

Trump described the Golden Dome as the keystone of his military strategy, emphasising that it will “protect our homeland”. If realised, it would represent a groundbreaking leap in missile defence capabilities, integrating space-based technologies to neutralise threats before they reach US soil.