This week’s guide to government and politics in under 10 minutes

Good Monday morning. Gas prices are up, a pound of ground beef is more than the federal minimum wage, and the national average price for new homes is over $500,000. On the bright side, Costco hot dogs are still $1.50. We dug into all of that at The Affordability Gap, our live event with Reuters, and asked the questions on everyone’s mind. It’s all here this morning. Scroll on for the hot takes and to watch the convos.

I PRESIDENT TRUMP REQUESTS 42% INCREASE TO DEFENSE BUDGET

Congress will start debating the 2027 budget after President Donald Trump submitted his request on Friday, which includes a 42% increase in defense spending and a 10% cut to non-defense spending. The new defense money, on top of last month’s $200 billion request from the Pentagon, would go toward naval vessels, restocking and developing new munitions, and the “Golden Dome” missile defense system. It partially offsets these increases with major cuts that hit the Environmental Protection Agency, the Small Business Administration, and the Department of Labor, with the deepest reductions targeting programs that serve minority communities, including those that expand access to lending, bolster minority-owned businesses, and fight housing discrimination. 

>> Dig deeper into the President’s budget request here. 

I U.S. RESCUES TWO AIRCREW SHOT DOWN OVER IRAN

The U.S. has rescued two aircrew whose F-15E fighter jet was shot down over Iran. Both crew members successfully ejected from the aircraft. One member was rescued early Friday morning, and the other late on Saturday. The loss of the F-15E Strike Eagle is the first reported instance of an American combat aircraft going down in Iranian territory since the start of the war. Previously, three Air Force F-15Es were shot down by friendly fire over Kuwait. All six crew members in that incident safely ejected. An A-10 Warthog ground-attack aircraft was struck during the rescue operation, but the pilot was able to make it to Kuwaiti airspace before ejecting.

>> Learn how Congress authorizes or blocks a president’s military actions here. 

I STATES PAUSE NEW DATA CENTER CONSTRUCTION

State and local governments are pushing back against a surge in data center construction. Maine is poised to become the first state to pause construction of large data centers until 2027, following a 60% jump in electricity bills between 2021 and 2026. Lawmakers in 10 other states have proposed bans or temporary moratoriums, and Ohio voters have been given permission to collect signatures for a proposed constitutional amendment to block new large data centers. Individual communities in Indiana, Michigan, Missouri, Nebraska, Ohio, and Virginia have also banned or paused construction. 

>> Discover how state lawmakers are weighing the pros and cons of new data center construction here. 

I ARTEMIS II POISED TO SET LONG-DISTANCE RECORD

The Artemis II mission heads to the moon this week, with astronauts staying on board their spacecraft for a lunar flyby and testing the mission’s new spacecraft. The crew will break a record for traveling farther from Earth than ever before, 250,000 miles, surpassing Apollo 13’s 1970 record of 248,655 miles. This mission, a dress rehearsal for the moon landing mission planned next, also includes the first woman on a lunar mission—NASA astronaut Christina Koch. 

>> See what the astronauts on the Artemis mission will be doing each day of the trip here.

I GLOBAL FOOD PRICES GROW

A report by the UN’s Food and Agriculture Organization found that global food prices rose 2.4% in March, marking a second consecutive monthly increase. The index tracks the costs of grain, sugar, meat, dairy, and vegetable oils. Sugar and vegetable oil saw the largest increases, 5% and 7%, respectively. Wheat prices rose 4.3%. The report warns that the war in Iran could further raise food prices, as about one-third of fertilizer production passes through the Strait of Hormuz. UN projections say global prices could rise 15%-20% higher through the first half of 2026 if the strait remains closed. 

Ed Elson gives us his 30-second hot takes on: Entry-level job pay, housing costs, and the value of a college degree, and more. Watch now on ASP.  

Stay ahead of the stories driving national conversations

Reuters asked: “Is there anywhere you think is still affordable in this city?”
NYC Councilmember Chi Ossé deadpanned: “...A New York City park? The library?”

CLIP FROM INSTAGRAM OF THAT EXCHANGE TK

That exchange set the tone for the ASP and Reuters Affordability Gap event, moderated by Chris Evans, Mark Kassen, and Reuters’ Carmel Crimmins. Students and young professionals came ready to ask the hard questions: why does everything cost so much, and can policymakers actually help?

Housing dominated the conversation. Ed Elson, co-host of the Prof G Markets podcast, blamed restrictive policies: “On the housing front, it’s a simple supply and demand problem… we have figured out ways to make sure that houses cannot be built such that the price of houses for people who already own houses can continue to go up.” Ossé pointed to city-owned land for affordable housing and the state’s push to tax the wealthy. “A lot of the political pundits within New York City would say an individual like myself or Zohran would have been crazy. But… the majority of the state legislature is now pushing the governor to tax the rich,” he said.

Panelists also tackled broader economic pressures. Dr. Aaron Hedlund of the White House Council of Economic Advisers explained that corporate taxes hit consumers and workers, not CEOs: “It’s being borne by consumers. It’s being borne by workers in the form of lower wages.” The discussion later touched on how some young people try to bridge the affordability gap, such as through sports betting and prediction markets. Bo Erickson of Reuters pointed out that both parties are working on legislation here, and surprisingly, “Democrats and Republicans actually get along a lot better than you think behind the scenes.”

Watch the whole conversation live now on ASP.