U.S. President Donald Trump has proposed a significant increase in the military budget for fiscal year 2027, while calling for a 10% reduction in non-defense spending, Reuters reports. The plan comes as U.S. forces continue to deploy in ongoing operations against Iran.
The proposed defense budget would rise by $500 billion, reaching a total of $1.5 trillion—up from approximately $1 trillion in 2026. The plan includes a 5–7% pay increase for active-duty service members, including thousands currently deployed overseas. The White House described the proposed funding as “historic increases reminiscent of pre-World War II levels.”
This proposal arrives during a period of complex foreign policy challenges and rising domestic economic concerns, including high fuel prices driven by global conflict. Approval requires congressional consensus, a process that has recently seen disputes over spending, which led to the longest U.S. government shutdown in history.
Despite Trump’s previous criticism of military spending, which he labeled “crazy,” the national deficit continues to grow. The budget projects a deficit of $1.853 trillion for the fiscal year ending September 30, while the national debt has reached $39.016 trillion.
The proposal does not address mandatory spending areas, such as pensions and Medicare, which are politically sensitive to cut. If approved, total federal spending would rise to $2.2 trillion in 2027, compared with around $1.8 trillion spent in the current fiscal year.
This plan highlights a sharp prioritization of defense over domestic programs, signaling a shift in fiscal policy that could have major repercussions both internationally and for the U.S. economy.
