WSJ Opinion: Potomac Watch

Trump's Budget Plan: a 10% Cut, but With $1.5 Trillion for Defense

7 snips
Apr 7, 2026
Kate Batchelder-Odell, a Wall Street Journal editorial board member focused on national security and defense budgets, and Kim Strassel, WSJ columnist known for Washington policy analysis, discuss the 2027 budget's proposed 10% cut to domestic programs. They contrast deep defense spending increases, including a $1.5 trillion Pentagon plan, with avoidance of entitlement reform. Political prospects and fiscal assumptions are debated.
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INSIGHT

Budget Chooses Defense Over Domestic Programs

  • The Trump 2027 budget prioritizes defense over domestic programs, proposing a 10% cut to non-defense discretionary spending.
  • It targets big cuts like EPA down 52% and SBA down 67%, framing many programs as better handled by states or wasteful grants.
ADVICE

Return Certain Programs To State Control

  • Shift more federal responsibilities to states for programs like drinking water and some EPA functions to reduce federal overreach and inefficiency.
  • Administration argues programs like LIHEAP act as pass-throughs benefiting utilities and are prone to fraud, so devolution could cut waste.
INSIGHT

Ambitious $1.5 Trillion Defense Buildup

  • The administration seeks $1.5 trillion for defense via $250B baseline plus $350B in reconciliation and other measures to rebuild munitions, shipbuilding, and advanced weapons.
  • Plan would roughly double defense since 2021 and raise spending to about 4.5% of GDP, restoring readiness and production capacity.
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