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Trump proposes massive defense boost amid Iran war, cuts non-defense spending

April 4, 2026

US President Donald Trump has proposed a sweeping budget plan for the 2027 fiscal year, seeking a 10 percent reduction in non-defense spending alongside a major increase of $500 billion in military expenditure.

The proposal comes as the United States continues its involvement in the war with Iran, with rising global tensions and increasing economic pressure at home due to surging fuel prices.

Under the plan, defense spending would rise to approximately $1.5 trillion, up from around $1 trillion in 2026. The budget also includes a 5 to 7 percent pay increase for military personnel, many of whom are currently deployed in the Middle East.

However, the proposal has sparked political debate, as it requires approval from Congress, where disagreements over spending have previously led to a prolonged government shutdown.

Despite earlier promises to reduce the federal deficit, the US budget shortfall continues to grow, with projections estimating a deficit of $1.853 trillion for the current fiscal year.

The budget also outlines significant cuts to several key sectors, including agriculture, health, and environmental programs, while maintaining high allocations for defense, security, and immigration enforcement.

Critics have argued that the proposal prioritizes military spending over essential public services such as healthcare, education, and infrastructure, raising concerns over its long-term economic impact.

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