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Trump $2.2 trillion budget pairs defense boost with agency cuts

Gregory Korte, Erik Wasson, Bloomberg News on

Published in News & Features

President Donald Trump asked Congress to enact a $2.2 trillion budget for discretionary programs, seeking a massive increase in defense spending, while also renewing his push for steep cuts to domestic agencies.

The budget proposal released on Friday requests $1.5 trillion for defense, a significant increase over the $1 trillion sought for fiscal year 2026. The new figure includes $1.1 trillion in base discretionary spending for the Department of Defense and another $350 billion in mandatory spending as the U.S. carries out its war on Iran.

Discretionary nondefense spending would be cut 10%, or about $73 billion, according to the White House.

“President Trump promised to reinvest in America’s national security infrastructure, to make sure our Nation is safe in a dangerous world,” White House budget director Russell Vought said in a message accompanying the budget. “The 2027 Budget upholds this promise and would ensure that the United States continues to maintain the world’s most powerful and capable military.”

The president’s decision to seek a dramatic rise in the Pentagon’s budget — the largest single-year increase since World War II — comes as polls indicate he’s struggling to convince many Americans of the wisdom of the war in Iran.

The proposal also puts Trump’s Capitol Hill allies on the spot, after lawmakers failed to enact the full scope of reductions he sought in his first year back in office, and amid some voter backlash to his slash-and-burn efforts to trim the bureaucracy. Taken as a whole, the budget sets up a fierce debate over policies and priorities ahead of November’s critical midterm elections.

The budget serves as an important guidepost for upcoming funding battles and offers investors insight into how the White House is thinking about the nation’s economic future. While Republican lawmakers are not expected to pursue many of the cuts outlined in the document, a defense boost is more likely.

The White House budget includes $65.8 billion for shipbuilding, a 13% increase for the Department of Justice, and $10 billion for beautification projects in the nation’s capital.

The budget would also continue Trump’s attempts to dismantle much of his predecessor’s environmental agenda, canceling $15 billion in renewable energy and clean air programs — and redirecting much of it to building fossil fuel infrastructure and energy-hungry artificial intelligence supercomputers for the Department of Energy.

 

Also proposed for cuts are programs historically aimed at serving poor and minority communities, including Community Services Block Grants, the Minority Business Development Agency and the Community Development Financial Institutions Fund.

In a departure from decades of practice, the budget was not expected to include 10-year projections for the spending plan’s impact on future deficits, leaving those to an obscure release later in the year.

Trump has also been touting an effort to crack down on fraud in federal programs, an initiative led by Vice President JD Vance, claiming it will help recover funds.

“The numbers are so large that, if successful, we would literally be able to balance our American Budget,” Trump said in a Friday post on his social networking site. “Good Luck JD!”

Improper payments identified by federal agencies in 2025 — a rough proxy for fraudulent activity — totaled $186 billion. That’s about one-tenth of the $1.8 trillion budget deficit that same year.

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—With assistance from Steven T. Dennis and Justin Sink.


©2026 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.

 

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