• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipPolitics

Trump’s Budget Will Boost Pentagon But Slash EPA and State Department, Officials Say

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
February 27, 2017, 1:54 AM ET

The White House will send federal departments a budget proposal on Monday containing the defense spending increase President Donald Trump promised, financed partly by cuts to the U.S. State Department, Environmental Protection Agency and other non-defense programs, two officials familiar with the proposal said.

One of the officials said Trump’s request for the Pentagon included more money for shipbuilding, military aircraft and establishing “a more robust presence in key international waterways and chokepoints” such as the Strait of Hormuz and South China Sea.

A second official said the State Department’s budget could be cut by as much as 30%, which would force a major restructuring of the department and elimination of programs.

The officials requested anonymity because the draft budget had not been made public yet.

Trump, in a speech to conservative activists on Friday, promised “one of the greatest military buildups in American history.”

Some defense experts have questioned the need for a large increase in U.S. military spending, which already stands at roughly $600 billion annually. By contrast, the United States spends about $50 billion annually on the State Department and foreign assistance.

The amounts that Trump is proposing to add to the Pentagon budget and trim elsewhere are not yet publicly known.

For more on President Trump, watch Fortune’s video:

John Czwartacki, a spokesman for the White House’s Office of Management and Budget, said the budget blueprint would be released in mid-March.

“It would be premature for us to comment—or anyone to report—on the specifics of this internal discussion before its publication,” he said in a statement.

The budget plans that the White House is expected to send to departments and agencies on Monday are just one stage in a lengthy process.

The agencies can argue for more funding, and final spending plans must be approved by the U.S. Congress.

Trump’s budget assumes annual economic growth of 2.4%, the second official said. While campaigning for the presidency last year, Trump called for a “national goal” of 4% economic growth.

Treasury Secretary Steven Mnuchin, speaking on Fox News earlier on Sunday, said Trump’s budget would not seek cuts in federal social programs such as Social Security and Medicare.

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Leadership

Rich woman lounging on boat
SuccessWealth
The wealthy 1% are turning to new status symbols that can’t be bought—and it’s hurting Dior, Versace, and Burberry
By Emma BurleighDecember 3, 2025
2 hours ago
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 25, 2024.
AIMeta
Inside Silicon Valley’s ‘soup wars’: Why Mark Zuckerberg and OpenAI are hand delivering soup to poach talent
By Eva RoytburgDecember 3, 2025
3 hours ago
Alex Karp smiles on stage
Big TechPalantir Technologies
Alex Karp credits his dyslexia for Palantir’s $415 billion success: ‘There is no playbook a dyslexic can master … therefore we learn to think freely’
By Lily Mae LazarusDecember 3, 2025
4 hours ago
Isaacman
PoliticsNASA
Billionaire spacewalker pleads his case to lead NASA, again, in Senate hearing
By Marcia Dunn and The Associated PressDecember 3, 2025
4 hours ago
UPS
LawUPS
Lawyer blasts UPS for favoring profits over safety after fiery, deadly crash in Kentucky
By Jeffrey Collins and The Associated PressDecember 3, 2025
4 hours ago
Startups & VentureLeadership Next
Only social media platforms with ‘real humanity’ will survive, investor and Reddit cofounder Alexis Ohanian says
By Fortune EditorsDecember 3, 2025
4 hours ago

Most Popular

placeholder alt text
North America
Jeff Bezos and Lauren Sánchez Bezos commit $102.5 million to organizations combating homelessness across the U.S.: ‘This is just the beginning’
By Sydney LakeDecember 2, 2025
1 day ago
placeholder alt text
Economy
Ford workers told their CEO 'none of the young people want to work here.' So Jim Farley took a page out of the founder's playbook
By Sasha RogelbergNovember 28, 2025
5 days ago
placeholder alt text
North America
Anonymous $50 million donation helps cover the next 50 years of tuition for medical lab science students at University of Washington
By The Associated PressDecember 2, 2025
1 day ago
placeholder alt text
C-Suite
MacKenzie Scott's $19 billion donations have turned philanthropy on its head—why her style of giving actually works
By Sydney LakeDecember 2, 2025
2 days ago
placeholder alt text
Success
Warren Buffett used to give his family $10,000 each at Christmas—but when he saw how fast they were spending it, he started buying them shares instead
By Eleanor PringleDecember 2, 2025
1 day ago
placeholder alt text
Economy
Elon Musk says he warned Trump against tariffs, which U.S. manufacturers blame for a turn to more offshoring and diminishing American factory jobs
By Sasha RogelbergDecember 2, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.