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

The Department of Defense's 2027 budget proposal has been making waves since it was announced in spring. The proposal requests a total of $1.5 trillion for defense spending, a 38% jump over last year's funding, according to the Center for Strategic and International Studies. 

The argument is that this proposed budget, with the highest single-year increase since World War II, is meant to help the military better withstand economic downturns. However, the increased budget would help the military cover the cost of the Iran war while expanding military capabilities elsewhere.

This enormous budget increase comes at a 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.

Small businesses

One of the most immediate impacts could be felt in support for small businesses. The proposal includes a significant 67% cut to the Small Business Administration, which funds programs that help entrepreneurs and small business owners recover from economic downturns or find access to capital and business counseling.

The reduction may make it harder for small businesses to stay afloat in a challenging economy where costs continue to rise. Without federal support, many small business owners may have to make hard decisions about their future business plans.

Science and technology

Science and technology is another area where cuts could have a direct impact. 

The proposal includes about a 55% reduction to the National Science Foundation, which oversees research and education in all the non-medical fields of science and engineering. It also cuts funding by 54% for the National Institute of Standards and Technology, the agency responsible for the standardization of weights and measures, timekeeping, and navigation.

Since the Foundation provides 25% of all federally supported research grants for colleges and universities, anyone pursuing a higher education degree in the sciences or engineering could lose out on valuable funding. Many pursuing these studies will need to transform their savings to fund their education.

The environment and space exploration

The Environmental Protection Agency also stands to lose 52% of its funding, affecting everything from research funding to support programs safeguarding human health.

It's hard to overstate how serious this budget cut could be when you consider the agency's mission: to ensure that Americans have access to clean air, water, and land. One of its biggest tasks is to develop and monitor regulations designed to protect Americans. 

NASA could also see a 20% to 42% budget shortfall as the proposal cuts funding for STEM education. The administration says that the program hasn't been inspirational enough and has prioritized "some groups of students over others and has had minimal impact on the student outcomes."

Labor

Another major target is funding tied to the Job Corps program, which provides free education and vocational training to youth. The plan would cancel more than $1.6 billion in spending for the program.

That rollback could slow economic and educational opportunities for a younger generation of Americans. 

More broadly, it reflects a shift away from federal investment in education or economic improvement for young Americans.

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, while at the same time noting that the budget should be passed by Republicans without Democratic support.

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.

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 affect your financial fitness. They can show up in housing costs, health care access, and everyday expenses, depending on how the final plan takes shape.

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