The proposed fiscal year 2027 budget would mark a 42% increase in defence spending from 2026 levels and will serve as a starting point for negotiations with Congress over annual spending.
Hegseth and Caine are scheduled to appear in back-to-back hearings before the House and Senate Appropriations subcommittees that oversee defence spending.
During the Congressional hearing, Hegseth said the US has contingency plans in place regarding Iran. “We have a plan to escalate if necessary. We have a plan to retrograde if necessary. We have a plan to shift assets,” he said.
Separately, the Senate is scheduled to vote on Tuesday on confirming Kevin Warsh to the Federal Reserve Board of Governors.
This follows a procedural vote on Monday evening, where the Senate voted 49–44 to invoke cloture, clearing the way for the final confirmation vote.
If confirmed to the Board, a separate vote to confirm Warsh as Federal Reserve Chair, succeeding Jerome Powell, is expected as early as Wednesday, May 13.
Powell’s term is set to end on Friday, May 15.
According to the Senate floor schedule, the chamber will convene at 10:00 am on Tuesday, May 12. At 11:30 am (9 pm IST), the Senate will proceed with two roll call votes.
These include the confirmation of Kevin Warsh as a Member of the Board of Governors of the Federal Reserve System for a term of fourteen years from February 1, 2026, and a motion to invoke cloture on his nomination as Chairman for a four-year term.
