White House Budget Proposal: $1.5T for Defense, 10% Cuts to Select Domestic Programs

5 trillion for the next fiscal year, marking the largest military spending boost since World War II. 1 trillion allocated through the regular appropriations process and an additional $350 billion to be passed via a separate bill achievable by a Republican party-line majority. Russell Vought testified before a House committee on Wednesday to discuss the plan.

U.S. national security. Vought also noted that funding for the ongoing war in Iran during the current budget year would come through an emergency supplemental spending bill on top of next year's defense increase.

However, he said he does not have an estimate for the cost of the Iran war. The proposal calls for cuts of about 10% overall to health research, heating assistance, and other domestic programs, though mandatory spending programs such as Social Security and Medicare are excluded from these reductions. Among the eliminated programs is the Low Income Home Energy Assistance Program.

These cuts come amid rising energy prices, with gas prices increasing more than 21% last month and home energy prices rising over 30%, according to the Department of Labor. The defense budget increase and domestic cuts were discussed during a House committee hearing chaired by Rep. Jodey Arrington (R-Texas).

Arrington stated that President Trump inherited a "complete and utter mess" in January of last year and has since secured the border, cut taxes, and constrained nondefense spending. In contrast, Rep. " Democratic lawmakers expressed concerns about the budget's impact on health care and domestic support.

Rep. ) noted that the $350 billion proposed for defense could instead fund an enhanced health insurance tax credit for 10 years. The Congressional Budget Office and the Kaiser Family Foundation estimate that a recent bill, the One Big Beautiful Bill, strips health care coverage from 15 million to 17 million Americans.

Vought responded that not all people losing coverage are undocumented and cited benefits from people returning to the workforce. Additional scrutiny was directed at the Department of Defense's financial management. Rep.

) stated that the Department of Defense has failed eight consecutive audits and has never passed one, with over $10 billion in confirmed fraud. 7% drop from March, according to the University of Michigan survey. Separately, Vought told senators on Thursday that the Department of Homeland Security is "disintegrating" due to a lack of funding since appropriations lapsed on February 14.

The current budget year ends on September 30, and the White House's proposal sets the stage for significant shifts in federal spending priorities amid ongoing geopolitical and domestic economic challenges.