2. April 2026

Economists: Trump’s 2027 Economic Plan 'Even Worse Than His Last One'

WASHINGTON-- President Donald Trump is preparing to unveil a budget proposal that would allocate more than $1 trillion to defense spending in fiscal year 2027, with at least part of the increase expected to be offset by reductions to domestic programs.

The plan calls for boosting defense funding to as much as $1.5 trillion in 2027, up from nearly $1 trillion in 2026, according to a report published Thursday by Bloomberg. The proposed increase comes as the United States remains engaged in a protracted conflict with Iran, a military effort that has drawn growing public scrutiny over its cost, unclear objectives and mounting human toll.

The anticipated spending shift is likely to intensify debate in Washington over federal priorities, particularly as lawmakers weigh cuts to social programs alongside expanded military investment. Democrats are expected to seize on the proposed reductions, arguing they could disproportionately affect programs tied to affordability and economic security, including health care and child care.

Trump on Wednesday emphasized the need to prioritize war funding over certain domestic initiatives, referencing programs such as universal day care, Medicaid and Medicare. A recording of the remarks was later removed from the White House website after it had been posted.

The 2027 budget proposal is also expected to include updated long-term fiscal projections. Current estimates place the nation’s deficit over the next decade at roughly $16 trillion. During his first term, Trump pledged to eliminate the national debt, but federal borrowing instead increased by approximately $7.8 trillion.

Questions remain about how the administration intends to address widening deficits, particularly after the Supreme Court struck down a tariff policy Trump had promoted as a means of reducing the shortfall.

The federal government is already facing a projected $1.9 trillion deficit for the current fiscal year, with the total national debt approaching $39 trillion, underscoring the broader fiscal challenges confronting policymakers.