The Digester
politics

White House seeks US$1.5 trillion defence budget as Iran war drives costs

President Donald Trump asked Congress to approve a US$1.5 trillion 2027 defence request that would boost Pentagon spending by over 40 percent to sustain operations and rebuild stockpiles, while proposing cuts to non-defence programs to offset the cost.

Apr 3rd 2026 · United States

Insights

  • Trump requested a US$1.5 trillion defence budget for 2027, the largest single-year increase since World War II.
  • The increase would raise Pentagon spending by more than 40 percent to fund operations and rebuild depleted stockpiles amid the war with Iran.
  • Closed-door briefings indicate the Iran war could be costing about US$2 billion a day.
  • The administration proposes roughly US$73 billion in cuts to non-defence programs to help offset the increase.
  • The White House seeks to fund US$1.1 trillion through standard appropriations and US$350 billion via a party-line mechanism.
  • Lawmakers warned the plan could add trillions to deficits with annual shortfalls near US$2 trillion and total debt above US$39 trillion.

Sources