Trump proposes a $500 billion increase in the defense budget for FY2027 amid a 10% cut to non-defense spending

On Friday, April 3, U.S. President Donald Trump proposed cutting 10% of non-defense spending in fiscal year 2027 while adding $500 billion to the military budget, citing the ongoing U.S. military campaign in Iran and higher fuel costs for Americans.

Defense budget increase and pay raise

The proposal would raise the U.S. defense budget from about $1 trillion in FY2026 to $1.5 trillion in FY2027. It also includes a proposed 5%-7% pay raise for service members, alongside thousands more troops deployed to the Middle East.

According to the White House, the size of the increase is nearly equal to historically large defense spending boosts seen before World War II. The plan contrasts with Trump’s position during his first term, when he argued defense spending was too high.

Spending cuts, deficit outlook and debt

Trump, returning for a second term, pledged to cut federal spending and curb the accumulating budget deficit. He also appointed billionaire Elon Musk to lead a leaner government, including a plan to cut about 300,000 federal positions.

Despite those goals, the federal deficit is projected to widen. The Congressional Budget Office (CBO) projects the deficit for the fiscal year ending Sept. 30, 2026 at $1.853 trillion, up from $1.775 trillion in the prior year.

U.S. national debt has risen under both Republican and Democratic administrations, reaching $39.016 trillion as of March 17, 2026. One factor cited is that budget disputes have largely focused on annual discretionary spending, which accounts for about a quarter of the federal budget.

The FY2027 proposal does not change the largest mandatory programs, Social Security and Medicare, which the article notes is politically sensitive.

Congressional approval and government shutdown risk

The plan requires Congressional approval. Disagreements over White House spending decisions have contributed to the longest government shutdown in U.S. history.

If approved, total federal spending in FY2027 would rise to $2.2 trillion, up from about $1.8 trillion this fiscal year.

What the proposal would fund

Beyond the overall defense increase, Trump’s plan includes funding for specific defense priorities, such as the Golden Dome missile shield, additional stockpiling of critical minerals for the defense-industrial base, and $65.8 billion to commission 34 ships and support vessels.

Shipbuilding is described as a Trump priority since his first term, with the plan including initial funding for ships bearing the “Trump-class” name as well as submarines.

Russell Vought, White House Budget Director, said in a letter to Congress: “The era of fiscal gridlock is ending. Our fiscal policy has been aligned in the right direction.”

The Pentagon has also requested an additional $200 billion for the war in Iran, but the White House has not yet formally sent that request to Congress. If presented, the article says it would likely face scrutiny from both parties.

Political context and likelihood of passage

Experts cited in the article say the defense-heavy increase is likely to find support among hard-line, defense-minded lawmakers. The proposal also signals an effort to devote more resources to military objectives, even as Republicans increased defense spending last year through a law supported only by the party.

The proposal is also framed as reflecting the administration’s political priorities ahead of the November 2026 midterm elections, when Republicans must work to maintain control of both the Senate and the House.

At the same time, the article notes that White House budget proposals are often indicative, with appropriations lawmakers continuing negotiations to protect their priorities.

Democrats in Congress argue the plan is unlikely to pass due to its defense tilt at the expense of housing, healthcare, education, roads, scientific research, and environmental protection.

Agency cuts and domestic security funding

The plan includes significant reductions for several large federal agencies: a 19% cut to the Agriculture Department, a 12.5% cut to the Health and Human Services department, and a 52% cut to the Environmental Protection Agency.

Conversely, the White House proposed a 13% increase for the Justice Department to boost enforcement against violent crime. It also would preserve substantial domestic security and immigration enforcement spending, including $2.2 billion for ICE, 41,500 detention beds, and 30,000 family detention beds.

NASA and other non-defense items

Just two days after NASA carried out the Artemis mission placing four astronauts around the Moon, the White House proposed cutting NASA’s budget by 23%. The article says NASA’s science programs could face a $3.6 billion cut, potentially affecting about 40 programs.

Trump’s budget also includes $152 million to restore Alcatraz prison and $481 million to hire more air traffic controllers, increasing staffing at airports nationwide amid concerns about labor shortages and aviation safety.

Other proposed initiatives

The proposal includes $10 billion in mandatory funding to establish the “Presidential Capital Management and Development Program” under the National Park Service, tasked with coordinating, planning, and implementing projects to upgrade facilities in Washington, D.C., and nearby areas.