Trump Proposes Cutting Government Spending by $163 Billion in New Budget Plan

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The presidentโ€™s proposal, expected to be released on Friday, does not affect defense, Medicare, Medicaid, or Social Security.

WASHINGTONโ€”President Donald Trump is planning to unveil on Friday a budget blueprint that calls for slashing federal spending on key nondefense programs by $163 billion, targeting renewable energy, education, and foreign aid, according to a White House official.

The plan, first reported by The Wall Street Journal, calls for a 22.6 percent reduction in nondefense discretionary spending from fiscal year 2025 levels, bringing the total down to $557 billion. The proposal does not affect defense, Medicare, Medicaid, or Social Security but would significantly reduce funding to agencies such as the Environmental Protection Agency, the Energy Department, and the Department of Housing and Urban Development.

The White Houseโ€™s โ€œskinny budget,โ€ expected Friday at 11 a.m. EDT, outlines proposed spending for fiscal year 2026, which begins on Oct. 1. While largely symbolic, it offers a clear view of the presidentโ€™s political and fiscal priorities.

The blueprint previews the administrationโ€™s fiscal year 2026 plan, focusing on discretionary spending and portions of mandatory spending tied to reconciliation, with the full budget to follow later, according to the Office of Management and Budget (OMB).

The budget has the lowest amount of non-defense spending since 2017, and the lowest since 2000 when adjusted for inflation, a senior OMB official said during a conference call.

โ€œThis is the lowest non-defense spending level since 2017,โ€ the Office of Management and Budget (OMB) said.

Trumpโ€™s fiscal year 2026 budget, sent to Congress by the OMB, significantly increases funding for defense and border security. It also prioritizes dismantling what it calls a โ€œweaponizedโ€ federal bureaucracy and eliminating funding for diversity, equity, and inclusion (DEI); critical race theory programs; the โ€œGreen New Dealโ€; and other progressive initiatives.

โ€œAt this critical moment, we need a historic Budgetโ€”one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security,โ€ Russ Vought, OMB director, said in a statement. โ€œThe Presidentโ€™s Budget does all of that.โ€

By Emel Akan

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