Trump budget to frame midterms with increased war spending, domestic cuts

President Donald Trump is preparing a fiscal year 2027 budget that shifts the United States to a full war economy.

The plan calls for a massive increase in military spending to $1.5 trillion from less than $1 trillion in the current fiscal year.

This defense buildup will be funded in part by deep cuts to domestic agencies and health-care entitlements.

The proposal marks the first time Trump has packaged his complete second-term governing agenda into one comprehensive document with detailed numbers.

It will also update 10-year deficit projections currently estimated at around $16 trillion.

Trump once promised to balance the budget within five years. His first term added $7.8 trillion to the national debt.

The budget arrives as the United States prosecutes its war against Iran.

It coincides with preparations for the 2026 midterm elections.

Democrats plan to attack the plan for slashing health and safety net programs.

Some Republicans have already voiced resistance to proposed cuts in health and science agencies that Congress rejected on a bipartisan basis last year.

The White House previously requested an additional $200 billion in emergency Pentagon funding for the Iran War.

The shift prioritizes a dramatic expansion of military capabilities over non-defense discretionary spending.

Investors in U.S. Treasuries will scrutinize whether the debt and deficit levels rely on realistic economic assumptions that account for the ongoing war.

This approach carries significant political risk amid spiking gasoline prices and public fatigue with the war.