Trump unveils $1.5T defense surge, deep domestic cuts — what’s on the budget chopping block

The White House on Friday proposed a sweeping fiscal year 2027 budget that would dramatically increase military spending to roughly $1.5 trillion while cutting billions from domestic programs, marking a sharp shift in federal priorities toward national security and border enforcement.

The proposal outlines roughly $1.5 trillion in total defense resources, a figure the administration says is needed to address growing threats from China, Russia and other adversaries.

The request includes about $1.1 trillion in base discretionary funding for the Department of War, along with an additional $350 billion in mandatory funding to support priorities such as munitions production and expansion of the defense industrial base.

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If enacted, the plan would represent one of the largest increases in U.S. defense spending in decades, though the total includes a mix of discretionary funding and mandatory resources that are not typically combined in standard Pentagon budget comparisons.

The budget places heavy emphasis on rebuilding weapons stockpiles and strengthening domestic manufacturing capacity, areas that defense officials have identified as key vulnerabilities in recent years.

It calls for accelerated procurement of critical munitions and expanded investments in the defense industrial base, alongside increased funding for nuclear modernization.

Shipbuilding is another major focus, with $65.8 billion requested to procure 18 Navy battle force ships and 16 non-battle force vessels as part of a broader effort to expand maritime capacity.

The proposal also continues funding for the "Golden Dome" missile defense system, which aims to develop a layered homeland defense using space-based sensors and interceptors.

Emerging technologies play a central role in the plan. 

The budget highlights investments in artificial intelligence, drones and counter-drone systems, and next-generation aircraft, including continued development of the F-47 — a sixth-generation fighter designed to operate alongside autonomous systems — with the program targeting a first flight as early as 2028.

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The increase in defense spending is paired with a proposed 10% reduction in nondefense discretionary spending.

Budget tables show nondefense funding dropping to about $660 billion, while defense-related funding rises significantly, with base defense funding reaching roughly $1.15 trillion. 

The fiscal year 2026 National Defense Authorization Act (NDAA) authorized approximately $890 billion to $901 billion in defense spending. 

The administration also is proposing continued reductions in nondefense spending in future years, signaling a longer-term effort to rebalance federal spending toward national security priorities.

Several major agencies would see significant reductions under the plan, including: NASA, cut by about $5.6 billion, or 23%, State Department and international programs, down roughly $15.5 billion, or 30%, Environmental Protection Agency, cut by more than half, Department of Labor, reduced by about $3.5 billion and Department of Housing and Urban Development, down $10.7 billion.

The reductions are likely to face pushback from lawmakers, particularly over cuts to scientific research, housing programs and foreign aid.

"Donald Trump’s budget is rotten to the core, and Democrats will make sure it never passes," Senate Majority Leader Chuck Schumer, D-N.Y., said in a statement. "Trump is already spending massive sums on never-ending wars abroad, and now he’s pushing for a record-breaking $1.5 trillion in defense spending while slashing programs that Americans and seniors care about and rely on."

The budget also increases funding tied to immigration enforcement and domestic security.

The Department of Homeland Security would continue to rely on more than $190 billion in multiyear funding provided through prior legislation to support border wall construction, detention capacity and enforcement operations, including tens of thousands of detention beds.

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At the same time, the Department of Justice would receive $40.8 billion in discretionary funding, a 13% increase, with additional resources aimed at addressing violent crime, drug trafficking and cartel activity.

The proposal also includes continued support for military involvement in border operations, as well as expanded funding for the Coast Guard.

The budget proposes a roughly 30% reduction in funding for the State Department and international programs, including cuts to humanitarian aid, global health initiatives and contributions to international organizations.

At the same time, it creates a new $5 billion fund intended to support strategic partnerships and national security priorities, along with expanded financing for allied nations purchasing U.S. defense equipment.

The changes reflect a broader shift toward prioritizing security-focused spending over traditional foreign assistance programs.

Beyond military spending, the budget links national security more directly to economic and industrial policy.

It includes funding to expand domestic production of critical minerals and support supply chains, alongside investments in advanced computing, including artificial intelligence supercomputers at national laboratories.

Officials say those efforts are intended to reduce reliance on foreign suppliers and improve the United States’ ability to sustain long-term competition with adversaries.

The budget is based on projections that assume steady economic growth of about 3% annually and inflation stabilizing near 2%, estimates that could face scrutiny from outside analysts.

The proposal now moves to Congress, where it is expected to face significant debate over both the scale of defense spending and the extent of domestic cuts.

Lawmakers also will likely scrutinize the administration’s use of mandatory funding and reconciliation to support defense increases, an approach that differs from traditional budget negotiations.

While presidential budgets are rarely enacted as written, the proposal provides a clear outline of the administration’s priorities heading into the next fiscal year, with a focus on military strength, border enforcement and a reduced role for many domestic programs.