White House Pushes Record $1.5tn Defense Plan as Iran War Costs Soar

The administration of U.S. President Donald Trump is seeking congressional approval for a record $1.5 trillion defense budget for 2027, as mounting costs from the Iran war and global security obligations strain federal finances.

The proposal represents a more than 40 percent increase in Pentagon spending within a year — the steepest rise since World War II — aimed at sustaining military operations and rebuilding weapons reserves.

The move reflects the financial toll of a conflict now entering its fifth week and is expected to trigger a major funding battle in Congress.

Reports from U.S. media, based on confidential briefings, estimate the war with Iran may be costing up to $2 billion daily, even before factoring in future reconstruction and supply expenses.

To help cover the surge, Trump has proposed cutting around $73 billion from non-defense programs — roughly 10 percent — targeting what he described as “woke, weaponized and wasteful programs” and shifting responsibilities back to state and local governments.

The president emphasized that wartime priorities require difficult trade-offs.

“It’s not possible for us to take care of day care, Medicaid, Medicare,” Trump said, suggesting those services could be managed at the state level while federal efforts focus on “military protection.”

Democrats strongly opposed the proposal, with Senator Patty Murray accusing Trump of favoring military spending over American households.

“Donald Trump might be happy to spend more money on bombs in the Middle East than on families here in America — but I am not,” she said.

The proposal, released as part of a detailed budget document, is non-binding but outlines the administration’s priorities as lawmakers begin negotiating spending legislation.

Trump is advocating for more than $1.1 trillion in defense funds through standard appropriations, alongside an additional $350 billion through a party-line process that would not require Democratic backing.

While Republican leaders have expressed support, some remain wary of increasing deficits, with the U.S. already facing annual shortfalls nearing $2 trillion and total debt above $39 trillion.

Bipartisan concerns have also emerged over the scale of the proposed increase and the lack of clarity on how long the Iran conflict may last. Proposed domestic cuts are also likely to face resistance, as similar measures have been rejected before.

In addition to defense, the administration is proposing increased spending on law enforcement, including over $40 billion for the Justice Department.

Trump has also requested $152 million to begin reopening Alcatraz Island, a project estimated to cost $2 billion in total.

Republican lawmakers Roger Wicker and Mike Rogers welcomed the proposal, saying it sends “a clear signal for our allies and partners to build on recent progress and meet this benchmark alongside us.”

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