A new missile shield, pay hikes for soldiers, and deep cuts to the EPA, FEMA and welfare programmes – America’s defence budget for 2027 is the most ambitious in history.
‘US clearing Strait of Hormuz as a favour to the world,’ says Trump; targets other nations for ‘lack of courage’
The White House just unveiled its biggest-ever defence budget. While it’s still a proposal and Congress can change it, the ambition is clear: more weapons, more ships, a new missile shield, and cuts elsewhere.
We break it down in plain language.
Advertisement
The Trump administration released a federal budget outline proposing roughly $1.5 trillion in defence spending for the 2027 fiscal year, a record high. “The Budget builds upon the historic $1 trillion topline provided for the national defense by requesting $1.5 trillion for 2027, a 44-per cent increase,” the White House said. It includes a massive boost for weapons production, naval expansion, and a new “Golden Dome” missile defence system for the US homeland.
Advertisement
Two reasons. First, the US is still caught up in its conflict with Iran, and that situation isn’t cooling down anytime soon. So for now, security concerns are staying front and centre. Second, the administration wants to modernise fast, especially its nuclear arsenal, which gets an extra $3.5 billion for warhead upgrades. Shipbuilding gets $65.8 billion, and military salaries are going up 5–7%, especially for lower-ranked soldiers, to support recruitment and retention.
Non-defence spending, meanwhile, is set to take a hit. The plan trims about 10% from non-defence spending, which comes to roughly $73 billion. That means less money for welfare schemes, climate research and healthcare programmes.
And it doesn’t stop at home.
The proposal also scales back US global spending, with foreign aid and diplomatic funding set to drop sharply. The State Department and international programmes could see a “30 per cent decrease from the 2026 enacted level”, while several long-running initiatives, including food assistance schemes, face elimination. The plan instead shifts focus towards what it calls “America First” priorities, such as controlling migration, securing critical minerals and countering rival powers like China.
The EPA’s budget is being halved. FEMA, NIH, and the IRS all face reductions too.
This is still just a proposal. Congress has the final say, and budget plans almost always change before anything is approved. But the direction is clear that the US is prioritising defence spending, and Republicans may push parts of this through the Senate without needing Democratic support at all.
Advertisement
