Putin-style playbook? Trump eyes social cuts and major military boost
Donald Trump, President of the US (photo: Getty Images)
The new budget provides for a radical redirection of tax revenues to Pentagon needs and will hit social programs. US President Donald Trump is preparing to present the budget plan for the fiscal year 2027. The main items will be increasing defense and military spending, which Trump promised to his voters, reports Bloomberg.
According to Bloomberg, Trump seeks to raise defense spending to an astronomical $1.5 trillion. That is one-third higher than current levels. The lion's share of these funds will go toward waging war with Iran. The Pentagon has already submitted a request for an emergency $200 billion.
Bond market traders are waiting to see how such spending will affect the sustainability of public debt, the agency notes. The war has already led to a spike in oil prices: US inflation forecasts have been revised upward to 3.1%, which is already hitting Americans' wallets.
Who will fall under Trump's knife?
Civilian agencies will pay for the army's ambitious plans, and Trump is preparing harsh cuts. Health care programs and scientific grants are at risk. Last year, Congress already blocked similar presidential initiatives, but now the budget battle promises to be even fiercer, Bloomberg writes.
Key figures of the US budget plan for 2027:
- Defense: $1.5 trillion (administration target).
- War with Iran: $200 billion (immediate Pentagon request).
- Inflation: expected to rise to 3.1% due to hostilities.
- National debt: Trump finished his first term with a debt of $7.8 trillion.
However, there are untouchable items. Social Security and Medicare will remain unchanged. This is a strategic move by Trump, as these programs are too popular among voters of both parties. Cutting them ahead of the Senate elections would be political suicide.
Tariff dividends: $2,000 in hand
Trump promises to pay taxpayers $2,000 each — so-called tariff dividends. Previously, the government collected about $150 billion in import tariffs, and now it wants to distribute those funds to citizens.
However, according to the agency, such generosity has opponents even among Republicans. Some in the party believe that this money should go toward covering the deficit. The Supreme Court has already struck down part of Trump's emergency powers to collect tariffs. Now the White House will have to negotiate with Congress.
Latest news about Trump and the US
Earlier, Donald Trump announced the possibility of the US withdrawing from NATO, and it was no April Fools' joke. The US leader called the Alliance a paper tiger.
A similar position from Trump was confirmed by US Secretary of State Marco Rubio, noting that the US would review its NATO membership due to Europe's stance on Iran. Rubio was displeased that Alliance members are refusing to allow US aircraft to use their bases.
