US President Donald Trump has proposed a record $1.5 trillion defence budget for fiscal 2027, marking a sharp 44 per cent increase aimed at expanding military capabilities while significantly cutting domestic and foreign assistance programmes.
According to the White House budget proposal, the plan includes around $1.1 trillion in base defence spending and an additional $350 billion for priority areas such as munitions production and strengthening the defence industrial base. The administration said the move is designed to ensure the United States maintains military dominance amid rising global security challenges.
A key highlight of the proposal is the "Golden Dome" missile defence shield, which is set to receive substantial funding as part of a broader push to bolster homeland security. The budget also allocates $65.8 billion for shipbuilding and proposes pay raises for military personnel, including a 7 per cent increase for lower-ranked service members.
However, the defence expansion is paired with a significant reduction in non-defence spending. The proposal includes a 10 per cent cut to domestic programmes, impacting sectors such as education, healthcare, environmental initiatives and research.
The plan also outlines a major overhaul of US foreign policy spending, with the budget for the State Department and international programmes set at $35.6 billion—a 30 per cent reduction from current levels. The administration said the changes aim to refocus foreign aid toward strategic priorities and eliminate inefficiencies.
Central to this shift is a proposed $5 billion "America First Opportunity Fund," which would support initiatives such as curbing illegal immigration, securing critical mineral supply chains and countering geopolitical rivals, particularly China.
The proposal signals a move away from traditional humanitarian assistance. Funding for aid programmes would be reduced, with resources redirected toward initiatives aligned with US national interests. The long-standing Food for Peace programme faces elimination, while global health funding would be restructured under a new "America First Global Health Strategy."
In addition, the budget proposes cuts to international organisations, including reduced contributions to the United Nations and the elimination of funding for the World Health Organization. Support for the National Endowment for Democracy would also be scrapped.
At the same time, the proposal prioritises security-linked international spending, including $1.2 billion for narcotics control and global law enforcement cooperation.
The budget has drawn mixed political reactions. Republicans have largely backed the defence push, while Democrats have criticised the scale of military spending and warned that cuts to domestic and global programmes could undermine long-term stability.
The proposal now heads to Congress for approval, where it is likely to face intense debate before the new fiscal year begins on October 1.
(With inputs from IANS)
