Trump 2026 Budget Slashes Domestic Spending, Boosts Defense/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s 2026 budget proposal slashes $163 billion in domestic spending while dramatically increasing defense funds. The plan outlines deep cuts to climate, education, and public health programs, but lacks clarity on taxes and entitlements. Democrats and some experts warn the plan could hurt middle-class Americans and worsen economic inequality.
Trump 2026 Budget Cuts Quick Looks:
- $163 billion cut from non-defense domestic spending.
- National security spending increased by 13%.
- State Department funding cut by 84%; HUD and HHS slashed.
- IRS, FBI, climate, and education programs face major rollbacks.
- CDC and NIH budgets reduced by billions.
- Tariffs continue to spark global trade war concerns.
- Plan omits key details on taxes and entitlements.
- Congress expected to clash over spending priorities.
Deep Look: Trump’s 2026 Budget Proposes Deep Domestic Cuts, Ramps Up Defense Spending
WASHINGTON (AP) – President Donald Trump unveiled a sweeping and controversial 2026 federal budget proposal Friday that seeks to cut $163 billion from domestic programs while significantly increasing military and national security funding.
Framed by the White House as a return to “fiscal discipline,” the budget plan eliminates funding for various public services and climate-related programs, while prioritizing national defense and law enforcement. With no clear provisions for changes to income taxes, entitlement reforms, or deficit reduction, the proposal leaves critical gaps as it heads into Congressional negotiations.
“President Trump’s plan ensures every federal taxpayer dollar spent is used to serve the American people,” said House Speaker Mike Johnson, R-La. “Not a bloated bureaucracy or partisan pet projects.”
But Democrats slammed the budget for slashing programs that serve working and middle-class Americans.
“President Trump wants to defund programs that help everyday people while giving handouts to billionaires and raising tariffs on the middle class,” said Sen. Patty Murray, D-Wash.
Key Budget Highlights:
- Discretionary spending cut by 7.6%.
- National security funding raised by 13%.
- Defense Department to receive $113.3 billion more.
- Homeland Security to gain $42.3 billion.
- State Department funding slashed by 84%, down to $9.6 billion.
- Housing and Urban Development (HUD) to lose $33.6 billion.
- Health and Human Services (HHS) faces a cut of $33.3 trillion (figure possibly exaggerated in the source).
- Education Department budget reduced by $12 billion.
- IRS and FBI will see reduced budgets.
- Programs like LIHEAP (Low Income Home Energy Assistance), work-study, adult education, and English instruction face elimination or deep cuts.
- Centers for Disease Control (CDC) cut by $3.6 billion.
- National Institutes of Health (NIH) loses $18 billion.
- Over $15 billion cut from infrastructure tied to climate initiatives.
- National Oceanic and Atmospheric Administration (NOAA) to lose $1.3 billion.
Missing Details and Economic Risks
While heavy on cuts, the proposal notably omits key policy positions on taxes, Social Security, Medicare, or strategies to control the $36 trillion national debt.
Trump continues to push tariff-based trade policies, which some analysts say amount to de facto tax increases on American consumers. These measures are exacerbating tensions with foreign governments, sparking concerns of a global economic downturn.
The budget does not forecast future government borrowing levels and only presents top-line discretionary spending numbers, with the Office of Management and Budget (OMB) promising a more comprehensive version later. As deficits near $2 trillion annually, with interest payments climbing toward $1 trillion, the long-term sustainability of the plan remains questionable.
Vought and Project 2025
Russell Vought, director of OMB and key architect of Project 2025, played a central role in designing the cuts. The plan includes a $9 billion rescission package aimed at gutting funding for:
- U.S. Agency for International Development (USAID)
- Corporation for Public Broadcasting (PBS and NPR)
Trump signed an executive order Thursday to begin defunding those media institutions. Vought is expected to appear on Capitol Hill in the coming weeks to defend the proposal.
Congress Pushes Back
While the White House can propose, Congress holds the power of the purse. Lawmakers will now engage in intense debates over which programs to fund, which to cut, and how to handle taxation and entitlement spending. Trump’s allies are also drafting a massive legislative package to formalize some of the proposed cuts and tax changes—unlike the budget blueprint, this package would carry the force of law.
However, deep ideological divides persist even among Republicans, complicating swift passage. Democrats are expected to fight fiercely to preserve funding for education, healthcare, climate, and poverty programs.
“We expect to complete work on tax components very soon,” Johnson said, signaling an aggressive timeline for the accompanying legislative effort.
As Congress begins deliberation, temporary stopgap funding bills may be needed to avoid a government shutdown, given the complexity of reconciling these cuts with fiscal needs and political priorities.
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