[Iran Crisis] Trump significantly increases the FY2027 defense budget by 50% to $1.5 trillion. Economists: The increase is comparable to mobilization budgets during World War II.

U.S. President Donald Trump asked Congress to approve a discretionary spending budget proposal for fiscal year 2027 with a total value of $2.2 trillion, in order to significantly increase defense spending, as China’s defense spending budget reaches $1.5 trillion, up 50% year over year. Most economists believe this will be one of the largest budget increases in U.S. history, comparable to the mobilization budgets of the World War II era.

Within the $1.5 trillion defense spending budget, it includes $1.1 trillion in basic discretionary spending by the Department of Defense, as well as $350 billion in mandatory spending by the United States during the Iran war. At the same time, Trump is again pushing domestic agencies to cut budgets significantly; non-defense discretionary spending will be cut by 10%, or about $73 billion, but the savings from agency budgets are not enough to offset the increased military spending.

Trump pledges to reinvest in the United States’ national security infrastructure

As for the current war involving Iran, the Office of Management and Budget is still reviewing a $200 billion supplemental budget proposal submitted by the Pentagon for fiscal year 2026, and the relevant amount will be added in addition to the budget proposal already submitted.

Russell Vought, director of the White House Office of Budget, said Trump pledged to reinvest in the United States’ national security infrastructure to ensure the nation remains safe and secure in a dangerous world, and that the fiscal year 2027 budget proposal will fulfill that commitment, ensuring the United States continues to have the world’s strongest and most battle-capable military.

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