US President Donald Trump wants to ask Congress to approve a significant increase in defense spending in the draft US budget for 2027. The proposal includes a request for $1.5 trillion, significantly more than the one trillion dollars for fiscal year 2026. This was reported by UNN with reference to Bloomberg.
Details
The new figure includes $1.1 trillion in basic budgetary authority for the Pentagon, as well as $350 billion in additional resources. This is due to the US being at war with Iran.
At the same time, spending on other non-defense areas will be cut by 10%, approximately $73 billion.
The authors of the publication note that Trump's decision to sharply increase the Pentagon's budget came as he tries to convince the majority of Americans of the correctness of his actions in the Middle East. In addition, it is noted that this budget project causes fierce debates about policy and priorities. This is happening ahead of the midterm elections in November.
The budget will likely also contain economic indicators preceding the war in Iran. However, investors in US Treasury bonds will look to the budget for clues about the sustainability of US national debt, which could cause long-term Treasury yields to rise.
Recall
US President Donald Trump called on Iran to conclude a ceasefire agreement before "it's too late".