Trump's 2026 Budget Proposal: White House Proposes Aggressive Budget Cuts

Trump's 2026 Budget: Slashing Discretionary Spending, Ignoring Income Taxes and Entitlements

Brace yourselves, folks! President Donald Trump's 2026 budget plan is here, and it ain't for the faint-hearted. This budget aims to slash nondefense domestic spending by a whopping $163 billion while refusing to divulge details on income taxes, tariffs, entitlement programs, and the budget deficit.

This budget shows Trump's desire to put an end to diversity programs and initiatives to tackle climate change. However, it fails to shed light on what Trump has in store for income taxes, tariffs, entitlement programs, or the budget deficit – a clear indication of the challenge facing the President as he promises to cut taxes and repay the federal debt without any severe impact on economic growth.

Budgets may not be laws, but they serve as a blueprint for the upcoming fiscal year debates. The first post-election budget sets the tone for Trump's second term pursuits, along with his party in Congress.

House Speaker Mike Johnson, R-La., considers the plan a display of fiscal discipline against the backdrop of persistently high budget deficits. However, the budget does not include any forecast on government borrowing. "President Trump's plan ensures every federal taxpayer dollar spent is used to serve the American people, not a bloated bureaucracy or partisan pet projects," Johnson said.

On the other hand, Sen. Patty Murray, D-Wash., believes the cuts could be more extreme than what the administration has proposed. According to Murray, the budget fails to provide funding levels for programs, such as Head Start.

"President Trump has made his priorities clear as day: he wants to outright defund programs that help working Americans while he shovels massive tax breaks at billionaires like himself and raises taxes on middle-class Americans with his reckless tariffs," Murray said.

The budget seeks to cut discretionary spending by a total of 7.6% next year, but there's a significant 13% increase in national security spending.

The State Department and international programs would lose 84% of their funding and receive a mere $9.6 billion. The Housing and Urban Development Department would bear a $33.6 billion cut, and the Health and Human Services Department would receive $33.3 billion less. The Education Department's spending would take a hit of $12 billion.

On the other hand, the Defense Department would receive an additional $113.3 billion, and Homeland Security would get a $42.3 billion boost.

The IRS and FBI would face budget cuts, while the Low Income Home Energy Assistance Program would cease to exist. There would be a decrease of $980 million for college students in work-study programs, as well as similarly sized cuts for adult education and instruction for learning English.

The Centers for Disease Control and Prevention would lose nearly $3.6 billion under the plan, while the National Institutes of Health would face a staggering cut of almost $18 billion. The budget would eliminate more than $15 billion for infrastructure-related programs tied to climate change and $1.3 billion from the National Oceanic and Atmospheric Administration.

The White House budget plan comes at a time when Trump has imposed what could amount to hundreds of billions of dollars in tax increases in the form of tariffs, igniting a trade war that has consumers, CEOs, and foreign leaders worried about the possibility of an economic downturn.

The White House's Office of Management and Budget, headed by Russell Vought, has provided a skinny version of the topline numbers only, focusing on discretionary spending.

The nation's estimated $7 trillion-plus federal budget has been growing steadily, with annual deficits fast approaching $2 trillion and the annual interest payments on the debt almost $1 trillion. The escalating cost of Medicare, Medicaid, and other programs, mainly to cater to the nation's aging health needs, is primarily responsible for the ballooning debt load, which stands at $36 trillion.

Democrats are ready to label Trump's budget as another attempt by the Republican administration to gut government programs that Americans rely on. Congress is already engrossed in drafting Trump's big bill of tax breaks, spending cuts, and bolstered funds for the administration's mass deportation effort – a package that, unlike the budget plan, would carry the force of law.

However, deep differences remain among the Republicans, who are trying to pass that bill over the objections of Democrats.

"We are awaiting some final calculations on a few of the tax components, and we expect to be able to complete that work on a very aggressive schedule," Johnson said.

It's Congress, under its constitutional powers, that decides the spending plans, approves the bills that authorize federal programs, and funds them through the appropriations process. Often, that system breaks down, forcing lawmakers to pass stopgap spending bills to keep the government funded and avoid federal shutdowns.

Vought is expected on Capitol Hill in the weeks ahead as the Trump administration presses its case to Congress for funds.

Trump's 2026 budget plan, ignoring income taxes and entitlements, aims to slash non-defense domestic spending by $163 billion.
The budget shows Trump's desire to end diversity programs and initiatives focused on climate change.
Budgets serve as a blueprint for upcoming fiscal year debates, and this post-election budget sets the tone for Trump's second term policies.
House Speaker Mike Johnson considers the plan a display of fiscal discipline, while Sen. Patty Murray believes the cuts could be more extreme.
The budget seeks to cut discretionary spending by 7.6% next year, but there's a 13% increase in national security spending.
The State Department, Housing and Urban Development Department, Health and Human Services Department, and Education Department could face significant cuts.
The Defense Department and Homeland Security could receive increased funding, while the IRS, FBI, and Low Income Home Energy Assistance Program could face cuts.
The Centers for Disease Control and Prevention and National Institutes of Health could lose nearly $3.6 billion and $18 billion, respectively, while infrastructure-related programs tied to climate change and the National Oceanic and Atmospheric Administration could lose over $15 billion and $1.3 billion.
The White House budget plan comes at a time when Trump has imposed tariffs, escalating the cost of the federal budget, which stands at $36 trillion, and igniting a trade war that could lead to an economic downturn. Democrats are ready to label Trump's budget as another attempt to gut government programs relied upon by Americans.