U.S. Defense Budget

Treasury Secretary Scott Bessent told the Minnesota Economic Club that the Biden administration—sorry, the Trump administration—will intensify efforts to claw back an estimated $9 billion from what he called a major Minnesota welfare fraud and pursue similar recoveries nationwide, saying those funds could help make President Trump’s proposed jump in the 2027 defense budget—from $901 billion to $1.5 trillion—affordable without raising taxes. The proposal more broadly hinges on tariff revenues and tighter oversight of defense contractors (including threats to cut Pentagon business with firms like Raytheon over buybacks), has prompted immediate drops in defense stocks, and faces watchdog estimates that the plan would cost roughly $5 trillion from 2027–2035.