News & Trending Money News

Donald Trump Pushes $1.5 Trillion Defense Budget - 4 Programs That Could Lose Funding

Trump's budget plan shifts spending away from domestic programs.

By Jordan Major , Edited by Andrea Basse

Updated April 20, 2026

Add Us On Google

Donald Trump is proposing a major shift in federal spending, with a push to boost defense funding to $1.5 trillion in his 2027 budget. This is in part to help the military better withstand economic downturns.

The increase would represent roughly a 44% jump in Pentagon spending, one of the largest proposed expansions in decades. To offset part of that cost, the administration is calling for a 10% reduction in non-defense spending, setting up a major fight in Congress over where those cuts would come from.

The proposal offers a snapshot of the administration's priorities and the programs that could be on the chopping block.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

Housing assistance could shrink

One of the most immediate impacts could be felt in housing. The proposal includes a 13% cut to the Department of Housing and Urban Development, which funds programs that help low- and moderate-income households afford rent and maintain stable housing.

The reduction may lead to fewer housing vouchers, longer waitlists, or reduced support for affordable housing development. In a market where rents remain elevated in many cities, even a modest reduction in assistance may push more households into financial strain.

For renters already spending a large portion of their income on housing, the loss of federal support could make it harder to keep up with monthly costs.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Health programs face potential reductions

Healthcare is another area where cuts could have a direct impact. Trump signaled that military funding is his top priority, saying: "We're fighting wars… It's not possible for us to take care of… Medicaid, Medicare — all these individual things."

The proposal includes about a 12% reduction to the Department of Health and Human Services, which oversees a wide range of programs, including public health initiatives and support for vulnerable populations.

Among the programs potentially affected is the Low Income Home Energy Assistance Program, which helps households cover heating and cooling costs. Reductions here could increase out-of-pocket expenses for families already dealing with rising utility bills.

While Trump suggested that programs like Medicaid and Medicare could be handled at the state level, critics argue that federal cuts could create gaps in coverage or reduce access to services for those who rely on them.

Agriculture and food-related programs could tighten

The proposal also includes a 19% cut to the Department of Agriculture, affecting everything from research funding to support programs tied to food systems.

Some university grants and agricultural research initiatives would be eliminated, which may have longer-term effects on food production, pricing, and innovation.

While these changes may not show up immediately at the grocery store, reductions in agricultural investment can influence food supply chains over time, potentially contributing to higher costs or reduced efficiency in the future.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.¹ <p>Clients who complete the program and settle all debts typically save around 45% before fees or 20% including fees over 24–48 months, based on enrolled debts. “Debt-free” applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Average program completion time is 24–48 months; not all debts are eligible, and results vary as not all clients complete the program due to factors like insufficient savings. We do not guarantee specific debt reductions or timelines, nor do we assume debt, make payments to creditors, or offer legal, tax, bankruptcy, or credit repair services. Consult a tax professional or attorney as needed. Services are not available in all states. Participation may adversely affect your credit rating or score. Nonpayment of debt may result in increased finance and other charges, collection efforts, or litigation. Read all program materials before enrolling. National Debt Relief’s fees are based on a percentage of enrolled debt. All communications may be recorded or monitored for quality assurance. In certain states, additional disclosures and licensing apply. ©️ 2009–2025 National Debt Relief LLC. National Debt Relief (NMLS #1250950, CA CFL Lic. No. 60DBO-70443) is located at 180 Maiden Lane, 28th Floor, New York, NY 10038. All rights reserved. <b><a href="https://www.nationaldebtrelief.com/licenses/">Click here</a></b> for additional state-specific disclosures and licensing information.</p>

Clean energy and infrastructure funding

Another major target is funding tied to renewable energy and infrastructure. The plan would cancel more than $15 billion in spending from the bipartisan infrastructure law, including funding for clean energy projects and grants administered through agencies like the National Oceanic and Atmospheric Administration.

That rollback could slow the development of renewable energy projects and reduce investment in climate-related initiatives. For consumers, the effects may be less immediate but could influence long-term energy costs and infrastructure improvements.

More broadly, it reflects a shift away from federal investment in environmental programs, which the administration has criticized as unnecessary or misaligned with its priorities.

Why these cuts are being proposed

The administration frames these reductions as part of a broader effort to eliminate what it calls inefficient or politically driven spending.

In budget documents, the White House repeatedly referenced cutting "woke programs," a term used to describe initiatives aimed at supporting underserved communities or addressing social and environmental issues.

Supporters argue that reducing these programs could streamline government spending and redirect resources toward national defense. Critics, however, say the cuts would disproportionately affect lower-income households while shifting more resources toward military spending.

The political battle ahead

The proposal is already drawing criticism from lawmakers. Brendan Boyle, the top Democrat on the House Budget Committee, called the plan deeply unbalanced.

"This budget represents 'America Last,'" Boyle said, pointing to the contrast between increased defense funding and cuts to domestic programs. The divide is likely to shape negotiations in Congress, where lawmakers from both parties will weigh priorities and potential compromises.

Historically, presidential budget proposals are heavily revised before any spending plan is finalized, meaning many of these cuts may be reduced, altered, or removed entirely.

Make Money: 8 things to do if you're barely scraping by financially

Impact for everyday Americans

The impact depends on which programs households rely on. Cuts to housing, healthcare, and energy assistance could increase out-of-pocket costs for millions of Americans, particularly those already managing tight budgets.

At the same time, the benefits of increased defense spending are less direct for individuals, making the trade-offs more noticeable at the household level.

It's important to note that a president's budget proposal does not become law on its own. Congress ultimately controls federal spending and can reject or rewrite the plan. Even if the proposal is not enacted as written, it highlights the broader direction of policy priorities and the potential financial impact that could follow.

Bottom line

Trump's proposed $1.5 trillion defense budget is far from final, but it highlights a clear shift in spending priorities.

Changes like these don't just affect federal budgets. They can show up in housing costs, health care access, and everyday expenses, depending on how the final plan takes shape.

More from FinanceBuzz:

$0 annual fee
Intro APR on purchases and balance transfers
Apply Now

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem cash back for any amount. No annual fee.
Get a 0% intro APR for 15 months on purchases. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
Terms and conditions apply.

Discover <span class='whitespace-nowrap'>it<sup>®</sup></span> Cash Back

4.7

Apply Now

on Capital One's secure website

Read Card Review

Intro Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

Why we like it