The President’s FY27 budget request, sent to Congress on April 3, includes a cut of 10% to non-defense discretionary spending, which is the annual funding source for civilian agencies. As Office of Management and Budget Director Vought described the rationale for domestic agency cuts, “federal spending was being wasted on futile, ineffective programs” when President Trump took office. Vought added, “The 2027 Budget builds on the President’s vision by continuing to constrain non-defense spending and reform the Federal Government. The Budget proposes a 10% cut compared to 2026 non-defense levels.” A few departments, such as Veterans Administration (VA), are set to get increases over FY26 levels, but most will be decreased. The range of cuts varies widely, from 3% (Homeland Security) to 70% (Small Business Administration).
As expected, Democrats in Congress had a strong reaction. House Appropriations Committee Ranking Member DeLauro (D-CT) countered, “Instead of addressing the needs of the public, this administration wants to decimate public education, slash housing assistance, and eviscerate medical research funding…Democrats will continue to fight for investments that meet the needs of the American people.” These two statements set the scene for a tense election-year FY27 process.
As FBIQ predicted when the FY26 budget was released, steep cuts that the President proposed to domestic programs were, and are, unlikely to become law. FY26 final appropriations action saw most of the cuts to civilian agencies reversed.
At this point in the budget cycle, it is worthwhile to mine the budget for programs, agencies, or even entire Departments that are supported enthusiastically by the President and his Cabinet—particularly those that include new Trump initiatives or increased funding for existing programs. There is a mix of new programs, support for existing programs, and cross-cutting areas of investment to highlight in the FY27 President’s budget. Below are selected domestic spending priorities in the administration’s budget.
VETERANS AFFAIRS (VA)
Overall, VA’s FY27discretionary budget request is $144.9 billion, an increase of $11.5 billion, or 8.6%, over FY26. VA has increases in Medical Services (+$2.7 billion); Medical Community Care (+$5.7 billion), Medical Facilities (+$774 million), the Electronic Health Record Modernization (EHRM) program (+$840 million); Major Construction (+$1.7 billion), and several other areas. Very few programs were cut. There are many technology opportunities embedded in VA health, beyond EHRM. Increases in medical care support in-house VA care as well as care in the community; the integration of the two will increasingly require information technology to keep patient care seamless and ensure patient safety and security. The VA budget highlights its intention to improve scheduling and referral processes in medical care and billing capabilities for community care. On the benefits side, VA intends to modernize claims processing for benefits with $130 million to automate and use artificial intelligence in evaluating claims, helping with speed and accuracy with the goal of delivering benefits to veterans faster.
VA’s Information Systems is requested at $6.3 billion in discretionary funding for cybersecurity, continued implementation of a modern integrated financial and acquisition system, EHRM rollout support, and better digital platforms to support veteran healthcare and benefits.
In addition to the discretionary funds, VA requests $55 billion, an increase of $1.9 billion over FY26, for direct (mandatory) funding for the Toxic Exposure Fund, which includes healthcare, supporting information technology for healthcare and benefits, and other infrastructure needs to serve veterans covered by the 2022 PACT Act requirements.
TRANSPORTATION
The Department of Transportation (DOT) budget request is $26.6 billion, an increase of $1.6 billion, or 6% over the FY26 level. The administration is planning to invest in Federal Aviation Administration (FAA) Operations, with a $481 million increase for air traffic controller hires and enhanced aviation safety, support for commercial space operations, and an update to FAA’s telecommunications systems. The proposed budget includes $4 billion for FAA Facilities and Equipment toward building a new air traffic control system, similar to the FY26 funding level. This is in addition to $12.5 billion in funds provided in the 2025 reconciliation act (the One Big Beautiful Bill Act) for the same purpose.
The DOT budget includes several items under the “Maritime Action Plan,” a $1.5 billion plan to “reinvigorate the U.S. shipbuilding and maritime industries, which are vital to growing the United States role in the global Maritime Transportation System.” Elements include $500 million for Port Infrastructure Development Program grants, $355 million for Small Shipyard and Commercial Shipbuilding Infrastructure Grants, $550 million for the Merchant Marine Academy, and $100 million for workforce development and innovation programs.
For those in and around Washington, D.C., $403 million in the budget is intended to improve law enforcement in the Metro system, add camera and monitoring systems, and improve cybersecurity.
JUSTICE
Under the President’s budget request, the Department of Justice (DOJ) would get $40.8 billion in FY27, a $4.7 billion or 13% increase over FY26. A substantial portion of the increase is focused on supporting the caseload for the Executive Office of Immigration Review (EOIR), including almost $900 million to support EOIR and the need for more judges and courtroom space.
The budget proposes a $3 billion increase to combat crime in cities, including $100 million for a new Model Cities Initiative grant program to facilitate unified strategic approaches between Federal, State, local, and tribal leaders. To combat drug cartels trafficking fentanyl, the budget includes a $362 million increase.
The budget includes a new fraud division in DOJ for $30 million, termed the National Fraud Division, for “combating the rampant and pervasive problem of fraud in the United States.”
HEALTH AND HUMAN SERVICES (HHS)
Overall, HHS discretionary funding would be cut by $15.8 billion, or 13%, from $126 billion in FY26 to $111 billion in the Trump FY27 budget. The budget includes a major reorganization of HHS, setting up an Administration for a Healthy America (AHA), funded at $14.7 billion, “to prioritize programs that improve nutrition, food and drug quality and safety standards, and prevent chronic disease.” The proposed budget for AHA includes
- $1.9 billion to set up 1,400 Health Centers for primary care and education;
- $316 million for rural-focused grant programs and technical assistance;
- $20 million for a Chronic Care Telehealth Centers for Excellence Program;
- $8 million for telehealth nutrition services grants; $19 million to expand access to nutrition services;
- $84 million for the Food and Drug Administration to remove unsafe chemicals in food; and
- $55 million for new Infection Prevention and Healthy and Safe Food initiatives within the Centers for Disease Control and Prevention (CDC), focused on micro- and nano-plastics in food and water.
The administration seeks to modernize and streamline the Food and Drug Administration’s regulatory capability by supporting artificial intelligence (AI) and machine learning (+$2 million) and develop alternatives to animal testing (+$5 million). For the Indian Health Service/Health Information Technology, the budget proposes $287 million to continue the transition to a new and modernized Electronic Health Record system.
Within CDC, the FY27 Trump budget includes funding to continue the Public Health Data Modernization program, terming it “critical to national security and a fundamental component of response readiness.” The budget includes $75 million in discretionary funding and $205 million in separate funding for the public health data program.
At NIH, the budget includes $60 million for NIH’s Real-World Data Platform. This uses AI to support an interoperable research infrastructure by integrating real-world data from electronic health records, wearable sensors, genomics data, and environmental exposures.
HOMELAND SECURITY (DHS)
The President’s FY27 Budget requests $63 billion for DHS, a $2.2 billion or 3% decrease, from the 2026 Continuing Resolution level (which expired February 13 but is used as a budget baseline comparison). Most increases in DHS are for staffing and Coast Guard. Within Customs and Border Protection (CBP), which totals $18.5 billion, $136 million is planned for Automated Commercial Environment (ACE) technology, a system that handles tariff and trade payments. That funding will allow ACE to begin operating one year ahead of schedule. This request is in addition to the $191 billion in 5-year funding for DHS provided in last year’s One Big Beautiful Bill Act.
A significant decrease within DHS is a cut of $707 million for the Cybersecurity and Infrastructure Security Agency (CISA). (Not including transfers of functions and funds proposed in the request, which alter the net total.) The Trump budget looks to refocus CISA on its “core mission” of federal network defense, eliminating the Election Security Program and moving away from international activities and infrastructure partnerships. Both the House and Senate voted to block similar cuts to CISA last year.
HIGHLIGHTS FROM OTHER DEPARTMENTS
- Treasury —12% cut overall. Office of Terrorism and Financial Intelligence, $15 million increase focused on cyber criminals, greater cyber capabilities, better ability to delve into sanctions and uncovering illicit financial activity.
- Department of Energy (DOE) civilian budget is set for an 16% decrease, but the Trump budget plans for investment for in their Office of Artificial Intelligence and Quantum (AIQ) to support multiple AI supercomputers at national laboratories. The $1.2 billion AIQ funding for comes from programs set up by the Biden Infrastructure Investment and Jobs Act (IIJA).
- Department of Commerce—12% overall reduction but the budget includes a $135 million increase for “American Maritime Dominance,” slated for the National Oceanic and Atmospheric Administration’s (NOAA) shipbuilding and unmanned systems programs.
- National Science Foundation (NSF)—50% reduction, from $8.8 billion to $4.0 billion, though the budget proposes a joint DOE-NSF initiative. The initiative includes $75 million at Energy and $100 million at NSF to “ensure solutions are tailored to drought-prone basins and energy-intensive regions, strengthening America’s energy dominance.”
WHAT TO WATCH
The increases discussed above are representative of Presidential priorities in the civilian, non-defense budget, but there are many more small-scale ideas that could get traction. Initiatives that may have broad national appeal, with links to expertise retained in the federal government, and of interest to localities or universities, have a chance of being considered. Congress, especially Republicans, will want to support Presidential priorities. Conversely, other ideas, such as a proposed large-scale reorganization of HHS, were considered and rejected in FY26 and there is not likely to be a change in Congress’ position. Congress may also question the Trump budget’s elimination of programs that they funded through appropriations law that was enacted less than three months ago.
Oversight will be a theme of appropriations and authorizing hearings in April and May, as Cabinet officials come to Capitol Hill to defend and explain the FY27 budget request. They will also be asked about spending FY26 appropriations in line with Congressional direction. Finally, we will see the first set of bills marked up by the House Appropriations Committee in April, continuing into June, with the Senate Appropriations Committee likely doing their work to write and approve spending bills in July.