President Donald Trump Proposes $163 Billion Budget Cut

U.S. President Donald Trump has unveiled his administration’s first federal budget proposal since returning to office, calling for sweeping cuts in domestic programs while significantly ramping up funding for defense and border security.

The proposed $163 billion in cuts would dramatically scale back government spending on critical areas such as education, housing, and medical research. At the same time, the budget allocates substantial increases for homeland security and the military—moves Trump argues are essential for national safety and sovereignty.

The White House Office of Management and Budget (OMB) detailed a 23% reduction in non-defense discretionary spending, pushing domestic program funding to its lowest level since 2017. The proposal includes:

• A 15% cut to the Department of Education, aligning with Trump’s longstanding pledge to reduce the federal government’s role in public education.
• A nearly 50% reduction in the Department of Housing and Urban Development budget, affecting housing assistance and community development programs.
• Over 40% cuts to the National Institutes of Health and Centers for Disease Control and Prevention, raising concerns among public health advocates.
• A $2.49 billion reduction in the Internal Revenue Service’s budget, with Trump aiming to roll back what he calls the “weaponization” of IRS enforcement under the previous administration.

While domestic programs face steep reductions, homeland and national security spending are set to rise dramatically. Homeland security funding alone would increase by nearly 65% compared to 2025 levels.

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Key provisions include:

• An additional $500 million for discretionary spending to support mass deportations.
• $766 million for border surveillance technology.
• Funding to maintain a force of 22,000 border patrol agents, along with hiring more Customs and Border Protection officers.

Defense spending would also see a significant uptick, though some Republican lawmakers, including Senator Susan Collins of Maine, argue the increase doesn’t go far enough.

The proposal, dubbed a “skinny budget” due to its summary nature, serves as a starting point for congressional Republicans to draft their own appropriations bills. But it has already drawn criticism from both sides of the aisle.

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Democrats condemned the domestic spending cuts as “cruel” and “out of touch,” especially during a time when many Americans rely on federal assistance. Meanwhile, some Republicans, like Senator Collins, expressed concern that the budget shortchanges defense priorities and fails to support vital services like heating aid for low-income families.

“This request has come to Congress late, and key details still remain outstanding,” Collins said in a statement. “Ultimately, it is Congress that holds the power of the purse.”

Trump’s budget arrives amid growing concern over the nation’s ballooning debt, which has now surpassed $36 trillion. Critics warn that Trump’s push to extend the 2017 tax cuts could worsen the fiscal burden.

Despite this, the budget reflects his administration’s intent to streamline government by consolidating agencies—such as folding the U.S. Agency for International Development into the State Department, which itself would see a $50 billion cut.

Russ Vought, OMB Director and a key figure behind the conservative Project 2025 plan to shrink federal government reach, defended the budget.

“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 Vought.

The administration is also preparing a separate rescission package, aiming to codify existing cuts through the Department of Government Efficiency. However, with strong opposition in Congress and within Trump’s own party, the road to finalizing the budget remains uncertain.