On April 3, 2026, President Trump released his proposed Fiscal 2027 Budget. It was two months late. Strikingly, Trump proposed to increase defense spending by over 40% and cut non-defense discretionary spending by about 10%. Yet, even after slashing everything from environmental protection and scientific research to housing and small-business support, government spending will surge, the deficit will balloon, and the ratio of debt held by the public to GDP will climb to peacetime highs and remain above 100%.
Overall, the Trump administration’s proposed budget is an extension of what has become, particularly during the last three administrations, fiscal folly. Indeed, tax policy has become shambolic and spending discipline is non-existent. The numbers make clear that no relief is in sight.
