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Trump Proposes $163 Billion Cut to 2026 Federal Budget

Trump Proposes $163 Billion Cut to 2026 Federal Budget/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump’s 2026 budget plan would slash non-defense domestic spending by $163 billion while increasing expenditures on national security, according to statements released by the White House on Friday. The proposal, led by budget director Russell Vought, previews deeper government reductions and possible new revenue from tariffs. Democrats warn it signals an aggressive rollback of key federal services.

Office of Management and Budget director Russell Vought walks after a television interview at the White House, Tuesday, April 15, 2025, in Washington. (AP Photo/Alex Brandon)

Trump 2026 Budget Targets Deep Cuts: Quick Looks

  • White House to release “skinny” version of Trump’s 2026 federal budget
  • Budget expected to propose sweeping cuts across domestic programs
  • Led by OMB Director Russell Vought, architect of Project 2025
  • Follows earlier workforce reductions by Musk’s Department of Government Efficiency
  • May include revenue estimates from Trump’s new global tariff strategy
  • House Republicans advancing “One Big Beautiful Bill” alongside budget rollout
  • Vought preparing separate $9B rescission plan targeting PBS, NPR, USAID
  • Congress will begin hearings as Cabinet officials defend agency requests
Office of Management and Budget director Russell Vought walks after a television interview at the White House, Tuesday, April 15, 2025, in Washington. (AP Photo/Alex Brandon)

Deep Look: Trump’s 2026 Budget Unveils Bold Vision to Shrink Government and Reshape Spending

WASHINGTON — President Donald Trump will unveil his administration’s fiscal 2026 budget proposal Friday, outlining sweeping federal spending reductions and signaling an ambitious effort to overhaul the role of government in American life. This marks the first budget of Trump’s second term and is being closely watched as a roadmap for the White House’s policy direction.

Trump’s 2026 budget plan would slash non-defense domestic spending by $163 billion while increasing expenditures on national security, according to statements released by the White House on Friday.

The budget showed a desire to crack down on diversity programs and initiatives to address climate change. But the administration has yet to release detailed tables on what it wants income taxes, tariffs or the budget deficit to be — a sign of the political and financial challenge confronting Trump when he’s promising to cut taxes and repay the federal debt without doing major damage to economic growth.

Budgets do not become law but serve as a touchstone for the upcoming fiscal year debates. Often considered a statement of values, this first budget since Trump’s return to the White House carries the added weight of defining the Republican president’s second-term pursuits, alongside his party in Congress.

It also arrives as Trump has unilaterally imposed what could hundreds of billions of dollars in tax increases in the form of tariffs, setting off a trade war that has consumers, CEOs and foreign leaders worried about a possible economic downturn.

Although presidential budgets are symbolic in nature and not binding law, they serve as critical markers of executive priorities — and Trump’s latest effort is expected to be among the most aggressive budget proposals in modern presidential history.

Major Cuts, Fiscal Restraint, and Tariff Revenue

The budget, crafted by Office of Management and Budget Director Russell Vought, will likely emphasize steep spending cuts across a range of federal agencies and programs. The proposal comes as the national debt has surged past $36 trillion, with annual deficits nearing $2 trillion and nearly $1 trillion in annual interest costs.

Among the anticipated targets: agencies involved in public broadcasting, foreign aid, and regulatory oversight. Some reductions reflect cuts already underway, especially those implemented by Elon Musk’s Department of Government Efficiency, which has led efforts to shrink the federal workforce and cancel numerous contracts.

The administration also sees Trump’s new global tariff structure as a potential revenue stream. Although delayed for 90 days, the tariffs — some as high as 145% — are expected to generate income as well as serve broader trade and political goals.

The “Big, Beautiful Bill” Strategy

The budget release coincides with an accelerated effort on Capitol Hill to pass what Trump and House Speaker Mike Johnson have dubbed the “One Big Beautiful Bill” — a legislative package combining tax reforms, immigration enforcement funding, and spending rollbacks.

“The remaining pieces of ‘The One, Big Beautiful Bill!’ are coming together very well,” Johnson said Thursday following a meeting with Trump and key GOP lawmakers.

Johnson aims to push the bill through the House by Memorial Day, but Republicans face internal divisions and universal Democratic opposition, especially over proposed cuts to social services and education.

Congress Has Final Say, But White House Will Press

While the budget is a policy wish list, Congress retains the authority to write and pass appropriations bills. Still, Trump’s team is expected to mount a high-pressure campaign to influence spending legislation.

Vought, a former Heritage Foundation fellow and veteran of Trump’s first term, is central to that effort. He authored a key chapter in Project 2025, a conservative roadmap for government restructuring, and is expected to testify before Congress in the coming weeks.

He is also preparing a separate $9 billion rescission package that would gut funding for:

  • The U.S. Agency for International Development (USAID)
  • The Corporation for Public Broadcasting
  • Public Broadcasting Service (PBS) and National Public Radio (NPR)

Trump signed an executive order Thursday night instructing all federal agencies to end direct and indirect funding to PBS and NPR, citing what he called partisan bias and misuse of public dollars.

Democrats Push Back

Democratic leaders were quick to criticize the impending budget, warning it foreshadows the dismantling of services that millions of Americans rely on.

“This budget is not just a spreadsheet — it’s a declaration of war on public education, healthcare, the arts, and working families,” said one Democratic senator.

Many fear the administration’s approach could extend to hospitals, housing assistance, and climate programs.

With the nation’s economic growth slowing and voter concern rising over inflation and instability, the political stakes for Trump’s budget rollout are high.


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