The White House has submitted its fiscal year 2027 budget proposal to Congress, requesting $1.2 trillion in discretionary spending with significant increases for defense, artificial intelligence research, and border security.
Budget Highlights
The proposal reflects the administration's priorities heading into the midterm election cycle.
- Defense: $982 billion (up 4.5%), with $15 billion earmarked for AI-enabled weapons systems
- Non-defense discretionary: $218 billion, flat from current year
- New $12 billion National AI Research Initiative across NSF, DOE, and NIH
- $8.5 billion for border security including technology and personnel
- $5 billion for semiconductor manufacturing incentives (CHIPS Act Phase 2)
Congressional Outlook
Budget analysts give the proposal low odds of passing as-is, with defense hawks wanting more and fiscal conservatives objecting to the projected $1.8 trillion deficit. The budget serves as an opening negotiating position for appropriations battles expected to stretch into the fall.
