The Trump administration has proposed a $163 billion cut to federal spending for the next fiscal year, slashing non-defense discretionary spending by 23%, the lowest level since 2017.
According to a statement from the White House Office of Management and Budget (OMB), the budget plan would eliminate more than a fifth of non-military spending, excluding mandatory programs.
In contrast, the proposal increases defense spending by 13% and homeland security spending by nearly 65% compared to 2025 enacted levels. “At this critical moment, we need a historic Budget—one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security,” said OMB Director Russ Vought.
The proposed budget outlines projected government spending for the fiscal year beginning October 1 and includes detailed allocations for each federal agency. While the White House sets the framework, actual spending decisions will be determined by the Republican-controlled Congress, which may alter the proposal significantly.
The budget request comes amid ongoing negotiations within the GOP over funding strategies to support a major tax-cut bill. Lawmakers must also consider economic uncertainties tied to U.S. tariff increases that continue to disrupt global trade.
