This is my experience with the Army, from my conversations with people in the Navy and Air Force, the situation is more or less the same.
Although DoD (DoW) funding is at record highs right now, there's a number of issues facing the military..
1. The erosion of DoD controls over its own infrastructure, acquisitions, maintenance, etc, all of which affects sustainment. Since the Reagan administration, too much control has been given over to contractors. There was the belief that they did things cheaper, faster, more efficiently, but that ended up not being the case. These days, they have so much control over things, they can easily dictate schedule and costs. The DoD has been clawing back control over its programs, and some of this is evident in things such as kicking LockMart out of the two major next gen fighter programs after what they did with the F-35. But it's not only them, but much more wide spread.
Ultimately, the DoD is fed up of having little control over its own infrastructure and equipment, and they're also fed up with the forced "sharing" with the other branches (joint strike fighters, joint bases, etc). we're gonna see a mutual divorce in a number of areas.
2. Trump has considerable ability to shape what he wants the DoD to purchase and develop, but his preferences will not always align with those of the DOD ( military services, engineers, acquisition professionals, or operational planners, etc). Ideas such as abandoning EMALS, changing the location of a carrier’s island partly for aesthetic reasons, or developing Trump-class battleships will face DoD resistance if technical analysis shows that they would create operational, financial, or engineering problems. Contractors will generally pursue whichever concepts receive funding, but people within the DoD can use requirements analysis, testing, cost estimates, and congressional testimony to demonstrate why a proposal is or is not practical. Congress will also have considerable influence because it ultimately controls funding. The result will be an ongoing struggle among presidential direction, operational requirements, congressional interests, and industry incentives.
3. Many people within the DoD are developing plans for a different era of warfare in which AI, autonomous systems, unmanned vehicles, resilient communications, and large numbers of comparatively inexpensive platforms will become increasingly important. But the DoD can't fully execute them because it faces entrenched interests. Major contractors are often incentivized to offer expensive, proprietary, gold-plated solutions, politicians prioritize jobs and industrial activity in their own districts, the services themselves can produce excessive requirements and resist institutional change, and political or military leaders may remain attached to visually impressive legacy platforms and concepts.