US Eyes Record $1.5 Trillion Defence Budget Amid Iran Conflict

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Washington DC: The White House is seeking approximately $1.5 trillion in defence spending as part of its fiscal 2027 budget proposal, a move that would push military expenditure to record levels amid US President Donald Trump’s ongoing conflict with Iran, according to CNN.

The proposal outlines a more than 40% increase in defence spending compared to the previous year. It prioritises boosting munitions, expanding the US naval fleet and initiating construction of Trump’s proposed “Golden Dome” missile defence system. It also includes pay raises of 5% to 7% for military personnel to support recruitment and retention.

Of the additional $445 billion planned for defence, the administration proposes routing $350 billion through upcoming legislation. Republicans are expected to use a Senate mechanism requiring only a simple majority, potentially bypassing Democratic support.

The proposed surge underscores the administration’s continued focus on the conflict, despite earlier indications that hostilities would be short-lived. In parallel, the Department of Energy budget seeks to increase funding for nuclear programmes, including the National Nuclear Security Administration, by more than $3.5 billion to modernise warheads and naval systems.

The budget blueprint — often seen as a policy proposal — will face scrutiny in Congress, which holds final authority over federal spending and could alter key provisions.

In contrast, the proposal calls for a 10% cut in non-defence spending, amounting to $73 billion, largely targeting social services and healthcare programmes. Programmes such as the Low Income Home Energy Assistance Program and the Community Services Block Grant are expected to be affected.

The plan also proposes cancelling $15 billion in infrastructure funding and cutting more than $1 billion from climate research. The Environmental Protection Agency’s budget would be reduced by nearly half, while the Department of the Interior faces a 12% cut.

Despite the broader reductions, the proposal includes $10 billion for construction and beautification projects in Washington, DC, and allocates $5 million to the Melania Trump Foster Youth to Independence Initiative.

Further cuts target agencies under the Department of Homeland Security, including FEMA and the Cybersecurity and Infrastructure Security Agency, along with a $5 billion reduction for the National Institutes of Health and a $1.4 billion cut for the Internal Revenue Service.

The administration also plans to begin privatising airport screening operations and eliminate $4.2 billion in subsidies for electric vehicle charging infrastructure, signalling a broader shift in policy priorities.

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