Col. Rob Manning, a Pentagon spokesman, said Thursday that the military and the White House "have now agreed to explore opportunities in 2019".
The parade to honor US military veterans and commemorate the 100th anniversary of the end of World War One could cost more than $90 million, the USA official said, citing provisional planning figures that were almost three times an earlier White House estimate.
A US official, speaking on condition of anonymity, said it was unclear exactly what caused the postponement but the increased cost of the event had caused concern and could be one reason.
The Pentagon says President Trump's planned military parade, which was originally scheduled for November, will instead be delayed until next year. Some share of the higher cost of close to $100 million is expected to be paid by other government agencies that would take part in organizing or securing the event.
The defense official said that the parade would include Bradleys, as well as other armored vehicles including Strykers and M113s.
Officials have been planning the event since earlier this year, when the president, apparently inspired by a similar display he observed last year in France, discussed the parade in a meeting with senior officials at the Pentagon. The parade was reportedly set to cost more than $90 million.
It later emerged that the drills cost about US$14 million, a fraction of the price of a military parade.
Trump said the drills were provocative and that dumping them would save the U.S. "a tremendous amount of money".
Held on Veterans Day, the parade would include troops and equipment from all five branches of the armed services, and would celebrate the history and accomplishments of the United States military, from the Revolutionary War, up to the present day.
The U.S. has not held a major military parade in Washington since 1991 to mark the end of Operation Desert Storm. His staff is planning the parade along a route from the White House to the Capitol, and would integrate it with the city's annual veterans' parade.
Earlier this year, a senior official said the parade would probably cost between $10 million and $30 million.
"The American Legion appreciates that our President wants to show in a dramatic fashion our nation's support for our troops", said Denise Rohan, national commander of the veterans' group.
Several months later Trump praised the French parade, saying, "We're going to have to try and top it".