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Trump’s 2027 budget could give the Pentagon the most massive boost in decades

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Why This Matters

The proposed 2027 budget signals a major shift in U.S. priorities, with a historic increase in Pentagon funding to modernize the military amidst ongoing global tensions. This move underscores the emphasis on defense over domestic programs, raising important questions about fiscal sustainability and national security priorities for consumers and the tech industry alike.

Key Takeaways

Pentagon spending could go up to $1.5 trillion. The White House is set to release President Donald Trump’s 2027 budget Friday, a sweeping blueprint that could boost Pentagon spending to $1.5 trillion, the largest of its kind in decades, as the U.S. focuses on military investments rather than other domestic programs.Even before the U.S.-led war against Iran, the Republican president had indicated he wanted to bolster defense spending to modernize the military for 21st-century threats. Separately, the Pentagon last month proposed $200 billion for the war effort and to backfill munitions and supplies.Trump, speaking ahead of an address to the nation this week about the Iran war, signaled the military is his priority, setting up a clash ahead in Congress.“We’re fighting wars. We can’t take care of day care,” Trump said at a private White House event Wednesday.“It’s not possible for us to take care of day care, Medicaid, Medicare — all these individual things,” he said. “They can do it on a state basis. You can’t do it on a federal.”The president’s annual budget more broadly is considered a reflection of the administration’s values and does not carry the force of law. The massive document typically highlights an administration’s priorities, but Congress, which handles federal spending issues, is free to reject it and often does.With the nation running nearly $2 trillion annual deficits and the debt swelling past $39 trillion, the federal balance sheets have long been operating in the red.About two-thirds of the nation’s estimated $7 trillion in annual spending covers the Medicare and Medicaid health care programs, as well as Social Security income, which are essentially growing — along with an aging population — on autopilot.The rest of the annual budget has typically been more evenly split between defense and domestic accounts, nearly $1 trillion each, which is where much of the debate in Congress takes place.The GOP’s big tax breaks bill that Trump signed into law last year boosted his priorities beyond the budget process — with at least $150 billion for the Pentagon over the next several years, and $170 billion for Trump’s immigration and deportation operations at the Department of Homeland Security.This year’s White House document, prepared by Budget Director Russ Vought, is intended to provide a road map from the president to Congress as lawmakers build their own budgets and annual appropriations bills to keep the government funded. Vought spoke to House GOP lawmakers on a private call Thursday.