Good afternoon! It is shaping up to be a busy week in Washington despite Congress being on recess, with the White House driving the news on two major fronts. President Trump’s self-imposed deadline for Iran to reopen the Strait of Hormuz comes due tomorrow at 8 p.m., with Tehran rejecting ceasefire terms this morning and the President signaling he will not extend the deadline again. Separately, the administration released its Fiscal Year 2027 budget request, proposing a historic increase in defense spending alongside significant cuts to domestic programs. House appropriators are expected to begin markups of the Fiscal Year 2027 Appropriations Bills in mid-April when members return to Washington on the 14th.
WHITE HOUSE
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Iran rejected a proposed ceasefire this morning, after President Trump set a deadline for Tehran to reopen the Strait of Hormuz by Tuesday at 8 p.m. Trump told reporters Monday he considers further deadline extensions “highly unlikely” and threatened strikes on Iranian bridges and power infrastructure if the waterway remains closed. Iran, through Pakistani mediators, demanded a permanent end to the war, full sanctions relief, and reconstruction commitments before agreeing to any terms. President Trump called the recent Iranian proposal “a very significant step” but insufficient.
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The White House released its Fiscal Year 2027 Presidential Budget Request, outlining a major shift in federal spending priorities toward defense and away from domestic programs. The budget is not binding, but it sets the baseline for congressional appropriators as they begin drafting FY2027 spending bills.
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Department Toplines: Agriculture $20.8 billion (down 19.0%); Commerce $9.2 billion (down 12.2%); Defense/War $1.5 trillion (up 44%); Education $76.5 billion (down 2.9%); Energy $53.9 billion (up 1.8%); Health and Human Services $110.5 billion (down 12.2%). Homeland Security $63.0 billion; Housing and Urban Development $73.5 billion (down 12.7%); Interior $15.9 billion (down 12.9%); Justice $40.8 billion (up 13.0%); Labor $9.9 billion (down 25.9%); Transportation $26.6 billion (up 6.2%); Treasury $11.5 billion (down 11.7%); Veterans Affairs $144.9 billion (up 8.7%).
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The request proposes $1.5 trillion in total defense funding, a $500 billion increase over current levels. Of that increase, $350 billion would move through budget reconciliation and $150 billion through the standard discretionary appropriations process. Non-defense discretionary spending would be cut by 10%, or $73 billion, through program eliminations, reductions, and shifts of certain responsibilities to state and local governments.
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The White House proposed a 6.2 percent increase to the Department of Transportation, requesting $26.6 billion for FY2027 (up $1.6 billion from FY2026), with funding focused on traditional infrastructure, a new air traffic control system, and industrial base expansion. Despite the discretionary increase, the request does not extend IIJA advance appropriations. Key provisions include $713.7 million for the Bridge Formula Program, $300 million for the CRISI rail program, elimination of the RAISE grant program, and cancellation of approximately $4.2 billion in unobligated EV infrastructure funds.
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The White House proposed cutting the Environmental Protection Agency’s FY2027 budget by 52%, requesting $4.2 billion, a $4.6 billion decrease from the FY2026 enacted level. The same request was made for FY2026 and was largely rejected by Congress.
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The White House proposed a 13% cut to the Department of Housing and Urban Development, requesting $73.5 billion for FY2027 (down from $84 billion). The request eliminates the Community Development Block Grant program ($3.3 billion), the HOME Investment Partnerships Program ($1.3 billion), and the Continuum of Care homeless assistance program, redirecting $4 billion to an expanded Emergency Solutions Grant focused on transitional housing and mental health services. All three programs received bipartisan funding in FY2026.
CONGRESS
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The House and Senate are in recess; the Senate is scheduled to return to Washington on April 13 and the House on April 14. House appropriators are expected to begin markups in mid-April, with Senate action anticipated in June.
