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Trump proposes $163 billion cut to federal budget

  • Trump proposes $163 billion cut to federal budget
    Trump proposes $163 billion cut to federal budget
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USA
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Politics
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Trump’s 2026 Budget Proposal Unveils Sharp Domestic Cuts, Prioritizes Security Spending

WASHINGTON. — President Donald Trump’s newly unveiled 2026 budget plan proposes slashing non-defense domestic spending by $163 billion, while sharply increasing expenditures on national security, reflecting the administration’s clear focus on defense, immigration enforcement, and conservative social priorities.

The proposal, released Friday by the White House, outlines broad spending cuts across domestic programs, including reductions targeting diversity initiatives and climate change efforts. Yet notably absent are detailed projections for income taxes, tariffs, or the budget deficit — leaving economists, lawmakers, and the public guessing how the administration plans to reconcile ambitious tax cuts and debt repayment promises without hampering economic growth.

While presidential budgets do not carry the force of law, they are widely viewed as a declaration of an administration’s priorities and set the stage for legislative battles in Congress. For Trump, now in his second term, this budget carries heightened political weight: it is his first full-year budget blueprint since returning to the White House, and it offers a window into the Republican president’s vision for reshaping federal spending.

The proposal arrives against the backdrop of a turbulent economic landscape. Annual federal deficits are racing toward the $2 trillion mark, and yearly interest payments on the national debt now approach $1 trillion — a staggering figure fueled by pandemic-era emergency spending, prior tax code overhauls, and rising healthcare costs as America’s population ages. The national debt stands at a record $36 trillion, an ever-growing burden that looms large over Washington’s fiscal debates.

Russell Vought, director of the White House Office of Management and Budget and a central figure behind Project 2025, described the plan as a “skinny budget” — a topline framework with more granular details expected soon. Speaking at a Cabinet meeting earlier this week, Vought assured reporters: “Details soon.”

Observers note that the 2026 budget proposal builds on cuts already made under Trump’s leadership and the efforts of his newly established Department of Government Efficiency, led by high-profile adviser Elon Musk. This department has focused on slashing the federal workforce and eliminating what the administration deems bureaucratic inefficiencies.

At the same time, the administration has pointed to potential new revenue sources, notably Trump’s aggressive tariffs program. While tariffs are effectively taxes on imported goods — and, by extension, American consumers — the White House has framed them as a patriotic tool to rebalance global trade relationships. However, the tariffs have also sparked fears of escalating trade wars, drawing concern from U.S. companies, foreign governments, and global markets.

Democrats have wasted no time in blasting the budget proposal, calling it a blatant attack on essential government programs that millions of Americans rely on, from healthcare to social services. “This budget is yet another example of Republicans’ desire to dismantle the very programs that keep working families afloat,” one Democratic lawmaker said Friday.

Meanwhile, Republican lawmakers are racing to align Trump’s proposed cuts with a sweeping legislative package — dubbed by the president as “The One, Big Beautiful Bill.” This ambitious bill combines tax breaks, spending cuts, and expanded funding for Trump’s hallmark mass deportation efforts.

House Speaker Mike Johnson (R-La.), a key Trump ally, has been in near-daily contact with the president to ensure the package advances swiftly. Johnson announced Thursday that the House is aiming to pass the legislation by Memorial Day and send it on 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 said in a statement.

As lawmakers brace for a heated fiscal debate, the coming months will reveal whether Trump’s bold budget ambitions can navigate the choppy waters of Congress — and whether the president can achieve his goal of reshaping the federal government without triggering political or economic backlash.