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AIMING HIGH: President Trump released his proposed $2.2 trillion budget plan for Fiscal Year 2027. As expected, it doubles down on defense spending and the development of critical minerals, while further gutting what it calls the “Green Energy Scam” and slashing numerous federal agencies and social programs.
Golden opportunities: One big pot of money will go to the Industrial Base Analysis and Sustainment (IBAS) and Defense Production Act (DPA) programs – more than $40 billion and $30 billion, respectively – marking the single largest proposed increases in overall spending and demonstrating a continued priority for the U.S. industrial base and domestic production capabilities.
The current administration has heavily prioritized critical mineral production and related supply chains, and it is likely that there will be more large government investments in public companies for critical minerals, munitions production, and shipbuilding capabilities.
The proposal supersizes the Pentagon budget to $1.5 trillion, marking a nearly 50 percent spike. That would include a major expansion of the Missile Defense Agency’s budget to $18 billion, nearly double what it projected for next year. And the plan sets aside $17.5 billion to pursue the Golden Dome missile defense system.
Another major beneficiary in the Pentagon spending plans would be the Air Force's Next Generation Air Dominance aircraft, or F-47, which would get $5 billion, up from $3.5 billion this year.
Criticality: For the Department of Energy, the White House is seeking a 10 percent increase to $53.9 billion, mostly for the National Nuclear Security Administration (NNSA), which develops nuclear weapons. But the Advanced Mining and Mineral Production Technologies Office is also slated to receive a 339 percent budget increase, according to the Federation of American Scientists.
That would be on top of more than $18 billion included in the Pentagon budget to stockpile minerals like cobalt, graphite, and other raw materials.
Other DOE programs of interest to USACA would be reduced. For example, the Manufacturing Deployment Office and the Advanced Materials and Manufacturing Technologies Offices would see cuts of 18 percent and 19 percent, respectively.
What’s next: The White House spending plan for Congress will likely come in a combination of three forms – the annual budget, a supplemental spending package to replenish munitions used in the Iran War, and a reconciliation package, the expedited legislative process allowing bills to pass the Senate with a simple majority, and thus along party lines if needed.
But we expect it to face many hurdles, including pushback from fiscal hawks in the GOP who are resistant to such historic defense increases, and opposition from Democrats, who immediately blasted the blueprint for its steep cuts in non-defense spending.
Oversight hearings are in full swing.
Related: President Trump Releases FY27 Budget Request
Go Deeper: President’s Budget
And: White House seeks $17.5 billion for Golden Dome, but most funding hinges on reconciliation
Plus: DOE’s FY27 Budget Request: The Good, the Bad, and the Ugly
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