US President Donald Trump’s 2026 budget proposal outlines sweeping cuts to non-defence domestic spending, totalling $163 billion, while ramping up expenditures on national security, the White House announced Friday.
The proposal targets diversity initiatives and climate change programs, reflecting the administration’s political priorities. However, it notably omits detailed projections for income taxes, tariffs, or the federal deficit — a sign of the significant political and financial challenges Trump faces as he pledges tax cuts and debt repayment without harming economic growth, according to news agency AP.
While presidential budgets are not binding, they serve as key indicators of an administration’s goals for the upcoming fiscal year. This marks Trump’s first budget since returning to the White House and underscores his second-term agenda alongside Republican efforts in Congress.
Trump’s proposal comes amid a volatile economic environment triggered in part by his own tariff policies. The White House has imposed what could amount to hundreds of billions of dollars in tax increases through tariffs, raising concerns among consumers, CEOs, and global leaders about the risk of an economic downturn.
The top-line figures released by the Office of Management and Budget (OMB), now led by Russell Vought — a key figure in Project 2025 — reflect a “skinny” version of the budget, with more specifics promised in the coming weeks. “Details soon,” Vought told a Cabinet meeting earlier this week.
With the federal budget surpassing $7 trillion, deficits nearing $2 trillion annually, and interest payments on the national debt approaching $1 trillion, the US debt has ballooned to $36 trillion. Much of this stems from pandemic-related spending, tax code changes, and increasing costs tied to aging-related healthcare programs like Medicare and Medicaid.
The 2026 proposal reflects prior cost-cutting actions by Trump and the Department of Government Efficiency, now overseen by adviser Elon Musk, including a trimmed-down federal workforce. It may also preview new revenue sources, particularly from tariffs.
Democrats are expected to fiercely oppose the plan, calling it a blueprint for slashing vital public programs. At the same time, congressional Republicans are working to draft Trump’s “big, beautiful bill” — a comprehensive legislative package combining tax cuts, spending reductions, and increased funding for mass deportations.
House Speaker Mike Johnson, who has met with Trump multiple times this week, aims to pass the bill through the House by Memorial Day and forward it to the Senate. “We had a very productive and encouraging meeting at the White House this morning, and the remaining pieces of ‘The One, Big Beautiful Bill!’ are coming together very well,” Johnson, R-La., said in a statement following Thursday’s meeting with Trump and key committee leaders.
Still, divisions persist within the Republican ranks as they try to pass the bill over Democratic opposition. “We are awaiting some final calculations on a few of the tax components, and we expect to be able to complete that work on a very aggressive schedule,” Johnson added.
Cabinet officials are now preparing to testify before Congress on their respective budget requests, with Vought expected to appear in the coming weeks to defend the administration’s plan.
A veteran of conservative fiscal policy, Vought previously served in the same role during Trump’s first term and authored a chapter in Project 2025 detailing a federal government overhaul. He is also preparing a $9 billion rescission package aimed at cutting current 2025 funding for the US Agency for International Development and the Corporation for Public Broadcasting, which includes PBS and NPR.
On Thursday, Trump signed an executive order instructing federal agencies and the Corporation for Public Broadcasting to halt funding for PBS and NPR — a move that aligns with the rescission package and signals more cuts could follow
