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White House Proposes 40% Increase in 2027 Defense Budget Alongside Cuts to Domestic Spending Due to Rising Costs from Iran War

Foreign03 Apr 2026 22:12 GMT+7

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White House Proposes 40% Increase in 2027 Defense Budget Alongside Cuts to Domestic Spending Due to Rising Costs from Iran War

The U.S. White House has proposed increasing the 2027 defense budget by about 40%, while cutting some domestic spending due to rising security costs from the Iran war.

On 3 Apr 2026 GMT+7, the White House under President Donald Trump proposed the fiscal year 2027 budget plan, requesting a defense budget of 1.5 trillion U.S. dollars, approximately 54 trillion baht. This figure represents about a 40% increase from the current defense budget. The administration justified this by citing the need to cover increased military expenses stemming from conflicts in the Middle East, particularly the war with Iran.

In the same budget plan, the government proposed cutting domestic spending by about 73 billion U.S. dollars, or roughly 2.6 trillion baht. These cuts cover some programs related to climate, education, and housing, including partial reductions in clean energy funding. Additionally, the government plans to increase budgets for border security and law enforcement, notably a likely boost for the Department of Justice.

However, this budget proposal must still be approved by Congress before becoming effective. Some members of both the Democratic and Republican parties have expressed concerns over the large defense budget increase as well as the impact of cuts to programs affecting the public.

Experts warn that if this plan is approved, it could lead to a long-term increase in the U.S. government's debt burden and become a significant political issue moving forward.

Source: AFP