US President Donald Trump’s administration on Friday proposed a $1.5trn military budget for the 2027 fiscal year, a 44% increase over 2026 levels, alongside sweeping cuts to government agencies and a drive to eliminate “woke” policies.
The budget proposal serves as a policy blueprint aimed at overhauling federal government operations, boosting investment in artificial intelligence (AI), and modernising military technology. According to a White House fact sheet, the administration intends to achieve savings by “reducing or eliminating woke policies” and programmes it describes as “political tools” or “wasteful,” while returning specific responsibilities to state and local governments.
The term “woke,” originally rooted in the struggle against racism and discrimination, is characterised by critics of the administration as an “excess of political correctness” and a “cancel culture” synonymous with modern social awareness movements.
The $1.5trn defence request includes a 5 to 7% pay rise for military personnel, depending on rank. It also seeks billions in additional funding for Immigration and Customs Enforcement (ICE), Customs and Border Protection (CBP), the US Coast Guard, and the Secret Service.
The defence plan allocates $175bn for the “Golden Dome,” a missile defence shield designed to intercept hypersonic missiles and nuclear weapons from land or space. Furthermore, the administration requested $65.8bn to construct 18 warships and 16 non-warships, a project designated as the “Trump Golden Fleet.”
To offset spending, the proposal calls for a total expenditure reduction of $73bn compared to 2026. This includes cuts exceeding 50% for the Small Business Administration, the National Science Foundation, and the Environmental Protection Agency (EPA). Funding reductions are also proposed for the Department of Labour, the National Institutes of Health, and the Federal Emergency Management Agency (FEMA), while the National Endowment for Democracy would be abolished.
The administration also plans to cut the Transportation Security Administration (TSA) budget by $52m to initiate the privatisation of the agency. Small airports would be required to join a security screening partnership programme where private contractors, paid by the TSA, manage security. Currently, approximately 12 airports participate in this programme, with San Francisco International being the largest. The proposal did not define “small airports” or provide a transition timeline.
In space exploration, NASA would receive $18.8bn in discretionary spending, a 23% increase from 2026. This includes $731m for the Artemis programme, which aims to land astronauts on the Moon by 2028 and establish a permanent base near the lunar South Pole. To save $3.4bn, the budget proposes cancelling 40 existing NASA programmes, including the Mars Sample Return mission, stating its objectives could be achieved through human flights to Mars.
For the capital, the proposal includes a $10bn “Presidential Capital Stewardship” programme. Supervised by the National Park Service, the initiative is intended to make Washington, D.C. “safe, clean, and beautiful again” through construction and beautification projects.
Domestic policy changes include the replacement of the Biden-era “Continuum of Care” homeless assistance programme with a $4bn “Emergency Solutions Grant,” which the administration described as “more targeted.” The budget seeks to eliminate housing programmes for people with AIDS and Indigenous populations in America and Hawaii.
Further cuts are proposed for K-12 basic education support, clean energy programmes within the Department of Energy, and employment and food assistance for senior citizens. Federal funding for low-income communities would also be reduced.
In contrast, the administration proposed a $10.5bn increase for federal Pell Grants to support low-income students. The budget also includes over $1bn for energy production and water security programmes, and $5m for a new initiative to support youth transitioning out of the foster care system.
The proposal must now be reviewed by the House of Representatives and the Senate, which will prepare their own budget versions for negotiation before final legislation is sent to the president.
