President Donald Trump on Friday requested a 10% cut in non-defense spending for the 2027 fiscal year and a massive $500 billion increase in the military budget, as the U.S. continues its war against Iran.
The 2027 budget request comes as the president faces risky choices abroad, with the administration sending U.S. service members to the Middle East, and a weary public at home feeling the economic crunch of skyrocketing gas prices due to the conflict.
The request ultimately requires approval by Congress, where disagreement over Trump’s spending decisions recently led to the longest government shutdown in U.S. history.
The huge proposed surge in defense spending to $1.5 trillion, up from about $1 trillion in 2026, includes a 5% to 7% pay raise for military personnel at a time when thousands of servicemembers are actively deployed.
The White House boasted that this defense funding approaches the “historic increases just prior to World War II.” The hefty ask contrasts with the more skeptical view Trump took toward military spending in his first term, when he even once called the level of funding “crazy.”
Trump came into office vowing to cut federal spending and rein in the nation’s growing budget deficit, bringing in the world’s richest person, Elon Musk, to lead an effort that pushed about 300,000 people off the federal payroll.
Despite that, the nation’s deficit, the gap between the amount of money the federal government takes in and how much it spends, has continued to widen, with the nonpartisan Congressional Budget Office forecasting a $1.853 trillion shortfall in the fiscal year that ends on September 30, deeper than last year’s $1.775 trillion.
The nation’s $39.016 trillion debt has continued to grow under Republican and Democratic governments in part because most of the political battles around spending revolve around the amount Congress directly controls, the roughly one quarter of the budget known as “discretionary spending.”
The 2027 budget request did not grapple with the most expensive part of mandatory federal spending – Social Security retirement and Medicare health spending for senior citizens – where suggesting cuts is considered politically perilous.
If enacted, total federal spending would reach $2.2 trillion in 2027, compared with the roughly $1.8 trillion spent for the current fiscal year.
DEFENSE COSTS
The military request will please defense hawks on Capitol Hill, but also highlights how Trump is trying to pay for doubling down on military pursuits, even after Republicans boosted defense spending last year in party-line legislation.
The Pentagon already requested $200 billion in extra funding to pay for the Iran war, but the White House has not yet officially made that request to Congress, where it is also likely to face scrutiny from lawmakers in both parties.
Other specific funding increases proposed by Trump include his controversial Golden Dome missile defense shield, money to build up critical mineral supplies for the defense industry and $65.8 billion to build 34 new combat and support ships.
Funds for shipbuilding, a priority for Trump since his first term, include initial funding for the so-called Trump-class battleship as well as submarines.
“Fiscal futility is ending,” White House budget director Russell Vought said in a letter to Congress, adding, “Our fiscal ship has turned to face in the right direction.”
MESSAGING IN A MIDTERM YEAR
The president’s budget also reflects the administration’s political priorities ahead of the 2026 midterm elections in November, when Trump’s Republicans hope to maintain their small majorities in both the U.S. Senate and House of Representatives.
Lawmakers on Capitol Hill often treat White House budget requests as suggestive, as appropriators try to negotiate behind the scenes to maintain their own legislative priorities.
Top congressional Democrats said Trump’s defense-heavy proposal was “dead on arrival.”
“It’s just an out-of-touch plea for more money for guns and bombs, and less for the things people need, like housing, healthcare, education, roads, scientific research, and environmental protection,” Oregon Senator Jeff Merkley, the top Democrat on the budget committee, said in a statement.
It was unclear how this new spending would affect the U.S. budget deficit because the projections were not included by the White House.
The budget is “light on details and heavy on borrowing,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement. “It relies on an entire decade of rosy economic assumptions for the vast majority of its improvements in the nation’s finances.”
In a Friday social media post, Trump asserted that his administration’s pursuit against fraud could “balance our American Budget,” a claim met with skepticism from budget experts.
However, the president and his team relish more funding fights with Democratic lawmakers, arguing in the documents that savings will be found “by reducing or eliminating woke, weaponized, and wasteful programs, and by returning state and local responsibilities to their respective governments.”
Some proposed cuts follow the Trump administration’s pursuit against “green energy” spending, as well as eliminating nearly 30 Justice Department programs they deem “weaponized” against the American people, along with other initiatives, like cutting the $315 million National Endowment for Democracy.
