Breaking Down Trump’s Fiscal Year 2026 Budget Proposal
Author
William Reza Abolghassem
Every year the President submits a budget proposal to Congress outlining the Administration’s policy and funding priorities for the upcoming fiscal year. The United State’s fiscal year runs from October 1st to September 30th. This past Friday, President Trump submitted his fiscal year 2026 discretionary funding budget to Congress. The budget proposal includes cuts of approximately 22% to non-defense government agencies and an increase of roughly 13% in defense spending. The release of the proposed budget has caught the attention of many on both sides of the aisle. The proposal sets up large drastic changes to the federal budget. However, Congress is unlikely to agree to these cuts to the full extent of the initial proposal, but the proposal itself reveals the administration’s primary goals over the next four years. Please continue reading below for a breakdown of Trump’s FY 2026 budget proposal.
Overview of the Cuts in Spending
President Trump’s proposed cuts are primarily focused on non-defense discretionary spending such as:
· Environmental programs and climate research
· Education, housing, and medical research
· Foreign aid, public assistance, and DEI (Diversity, Equity, and Inclusion) initiatives
Key Stats in Proposed Cuts
· Total discretionary non-defense spending cut by $163 billion or 23% (lowest level since 2017)
· IRS (Internal Revenue Service) spending cut by more than $2 billion
· NIH (National Institutes of Health) budget trimmed by roughly 40%
· CDC (Center for Disease Control and Prevention) spending cut by 50%
Increase in Spending
President Trump’s budget proposal looks to increase the amount of government funding of defense-related agencies such as:
· DoD (Department of Defense)
· DHS (Department of Homeland Security)
· VA (Department of Veterans Affairs)
Key Stats in Proposed Increases
· Defense spending up 13% to $1 trillion
· Homeland Security funding up nearly 65%
· $175 billion proposed for border security
· Department of Veterans Affairs proposed increased funding of 4%
Again, the President’s initial budget proposal is a sign of the administration’s goals and priorities over the next four years. The finished product will likely look much different. Stay tuned!
Sources:
https://www.usa.gov/federal-budget-process
https://www.govexec.com/management/2025/05/biggest-takeaways-trumps-cut-filled-fy26-budget/405037
https://www.washingtonpost.com/politics/interactive/2025/trump-budget-proposal-cuts
https://www.reuters.com/world/us/trump-unveils-federal-budget-blueprint-2025-05-02
https://thehill.com/business/budget/5280416-trump-budget-defense-nondefense