Federal programs are going to be reshaped.
President Donald Trump has presented a budget proposal for fiscal year 2026 that includes a $163 billion reduction in federal spending on key nondefense programs. The budget focuses on reducing expenditures in areas such as renewable energy, education, and foreign aid, while protecting defense, Medicare, Medicaid, and Social Security from cuts. Nondefense discretionary spending would decrease by 23%, bringing the total down to $557 billion, with major reductions in agencies like the Environmental Protection Agency, the Department of Energy, and the Department of Housing and Urban Development.
This “skinny budget” provides an early glimpse into the administration’s fiscal priorities for the upcoming fiscal year. While symbolic, it emphasizes President Trump’s approach to curbing government spending in specific areas. The proposal reflects the lowest nondefense spending levels since 2017, signaling a push to cut programs deemed unnecessary or ideologically driven by the administration.
A major aspect of the budget proposal is its focus on increasing funding for defense and border security while eliminating funding for certain progressive policies, including diversity and inclusion programs and critical race theory initiatives. The plan also reduces foreign aid by $49 billion, consolidating USAID into the State Department, reflecting a broader aim to limit international spending.
Certain sectors, such as transportation, homeland security, and veterans’ affairs, would be exempt from these reductions. The Department of Homeland Security, for example, would see a 65% increase in its funding. Overall, the discretionary budget would decrease from $1.83 trillion to $1.7 trillion due to substantial cuts in nondefense programs, with a focus on eliminating what the administration views as wasteful spending.
The budget also targets specific programs for elimination, such as the disinformation offices within the Cybersecurity and Infrastructure Security Agency, which the administration claims are harmful to American citizens. Other proposed cuts include defunding environmental justice initiatives at the EPA and reducing foreign development programs, aligning with the administration’s goal of streamlining government spending and cutting what it perceives as wasteful or politically motivated initiatives.
