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By Aliss Higham
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The White House will ask Congress to sign off a modern-record for defense spending while seeking to cut domestic spending, a summary of its budget request for the 2027 fiscal year shows.
The proposal released on Friday would increase military spending by 44 percent to $1.5 trillion and decrease domestic spending by about $73 billion, or 10 percent, on the previous year.
"This amount exceeds even the Reagan buildup by approaching the historic increases just prior to World War II, a level that recognizes the current global threat environment and restores the readiness and lethality of our forces," the summary said.
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Why It Matters
The Trump administration argues that ongoing conflicts, including the U.S. war with Iran, require historic investments in readiness, munitions, and force posture.
President Donald Trump and his aides have framed the surge in urgent terms and signaled that most of the defense total—more than $1.1 trillion—should be handled through the regular appropriations process, with the remainder advanced via the same budget reconciliation tactic Republicans used for last year’s tax law.
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Spending Increases
The president’s annual budget serves as a statement of the administration’s priorities rather than binding law. While the expansive proposal outlines key policy goals, it holds no legal authority, and Congress—responsible for federal spending—can disregard or amend it.
The proposed budget calls for a substantial increase in defense spending, allocating a total of $1.5 trillion for fiscal year 2027 through a combination of discretionary and mandatory funding.
The plan includes targeted pay raises for service members—ranging from 5 to 7 percent depending on rank—alongside funding to replenish key munitions stockpiles and expand the capacity of the defense industrial base.
Additional funding is directed toward securing domestic supplies of critical minerals used in defense technologies, with the aim of reducing reliance on foreign sources, the summary said.
The budget further proposes $65.8 billion for shipbuilding, covering a mix of battle force and support vessels and efforts to expand shipyard capacity.
"The Budget restores the readiness and lethality of the force by ensuring America’s warfighters are trained, equipped, and medically ready to fight and win," an introduction to the Department of War section of the budget reads.
Spending Cuts
The budget proposes a series of year-over-year spending reductions across multiple departments.
At the Department of Health and Human Services, discretionary funding would decline by $15.8 billion (12.5 percent) to $111.1 billion, with specific reductions including $4 billion from the Low Income Home Energy Assistance Program, $768 million from the Refugee Resettlement Program, and $5 billion from the National Institutes of Health.
The Department of Labor would see one of the steeper percentage cuts, falling by $3.5 billion (25.9 percent) to $9.9 billion, while the Treasury’s domestic programs would be reduced by $1.5 billion (12 percent) to $11.5 billion.
The Environmental Protection Agency faces the largest proportional cut, with funding dropping by $4.6 billion (52 percent) to $4.2 billion. NASA’s budget would also be reduced significantly, falling by $5.6 billion (23 percent) to $18.8 billion.
Funding for the Department of Housing and Urban Development would fall by about 13 percent to $73.5 billion, while the Department of Agriculture would see a steeper 19 percent drop to $20.8 billion. The Department of Commerce is also set for a reduction of roughly 12 percent, bringing its budget to $9.2 billion, while the Department of Education would face a more modest cut of around 3 percent, leaving it at $76.5 billion.
What People Are Saying
Trump said in a Truth Social post announcing his proposal: "This will allow us to build the 'Dream Military' that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe."
What Happens Next
The White House said a fuller budget submission would come later, after the initial summary, with appropriators facing decisions on whether to adopt most of the defense boost through regular bills and reserve reconciliation for the rest.
Any final package will need to navigate narrow Republican majorities, likely Democratic opposition to steep nondefense cuts, and scrutiny over the administration’s war updates and domestic trade-offs.
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