President Donald Trump released his proposed budget for fiscal year 2027 on . The budget seeks to increase defense spending to a massive $1.5 trillion while slashing non-defense discretionary spending by more than $73 billion . This includes a 52% cut in funding for the Environmental Protection Agency and drastic cuts across other critical areas .

While proponents argue that this increase in defense spending is necessary for national security, critics point out that it could exacerbate fiscal challenges . The federal deficit has started to shrink under President Trump, but his plans could make the long-term situation worse .

Notably, a one-year review of the effects of Trump's previous tariffs has concluded that they have produced 'far more disruption than clear gains' . The tariffs increased uncertainty for trade partners, consumers, supply chains, and investors, while delivering relatively few durable trade deals or convincing evidence of a manufacturing revival .