President Donald Trump’s administration unveiled its 2026 budget proposal on Friday, presenting a sweeping reconfiguration of federal spending priorities. The budget reflects the president’s broader vision for his second term, aligning with the direction set in his first 100 days back in office and marked by abrupt terminations of federal personnel.
This proposal includes dramatic reductions, or complete eliminations, of spending in numerous domestic programs. Key targets include child care services, disease research, renewable energy initiatives, and U.S. peacekeeping efforts abroad. Many of these cuts are already in progress under the guidance of Elon Musk’s Department of Government Efficiency. At the same time, the plan boosts funding by billions of dollars for Trump’s high-priority immigration enforcement and mass deportation policies.
Trump’s administration maintains its commitment to ending what it calls “woke programs.” This includes the elimination of preschool grants to states that run diversity programs. It also follows through on Trump’s vow to put an end to what he refers to as the “weaponization of government,” by slashing funding for the Internal Revenue Service, despite criticism that he himself is leveraging government power against perceived adversaries.
Overall, the White House estimates that the proposal reduces domestic spending by $163 billion, or 22.6 percent below current funding levels. In contrast, Trump seeks to inject $375 billion in new funding for the Department of Homeland Security and the Department of Defense. This funding surge is part of what Trump calls his “big, beautiful bill” — a legislative package combining significant tax cuts with major reductions in spending. He insists this is essential to repel what he characterizes as a “foreign invasion,” even as data shows migrant arrivals at historic lows.
House Speaker Mike Johnson praised the plan, describing it as “a bold blueprint that reflects the values of hardworking Americans and the commitment to American strength and prosperity.”
Although presidential budgets are not legally binding, they often serve as guiding documents in the fiscal debates that unfold in Congress. Trump’s 2026 proposal is his first since returning to the White House and offers insight into his second-term ambitions and the broader Republican agenda on Capitol Hill.
The timing of the budget also intersects with Trump’s ongoing imposition of tariffs, which many view as a de facto tax increase. These tariffs, totaling potentially hundreds of billions of dollars, have sparked global trade tensions. Consumers, CEOs, and international leaders alike worry that this trade war could tilt the U.S. economy toward a downturn.
In an interview with NBC News’ “Meet the Press,” Trump rejected claims that a recession was looming. When host Kristen Welker brought up Wall Street analysts’ growing concerns, Trump responded, “Well, you know, you say, some people on Wall Street say. Well, I tell you something else. Some people on Wall Street say that we’re going to have the greatest economy in history.”
Democrats were quick to criticize the budget as harmful to average Americans. Senator Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee, said, “President Trump has made his priorities clear as day: he wants to outright defund programs that help working Americans,” while simultaneously “he shovels massive tax breaks at billionaires like himself and raises taxes on middle-class Americans with his reckless tariffs.”
The budget outline was presented by the White House Office of Management and Budget, led by Russell Vought. A key architect of Project 2025 from the conservative Heritage Foundation, Vought provided only topline figures in a leaner, “skinny” version of the full budget.
It addresses discretionary spending, which currently totals about $1.83 trillion annually across defense and nondefense sectors. Under Trump’s plan, this amount would drop by $163 billion, bringing it down to $1.69 trillion. However, this figure represents only a fraction of the government’s nearly $7 trillion overall budget, which includes mandatory spending programs like Social Security, Medicare, and Medicaid.
In recent years, federal budgets have steadily grown, as have deficits, which now approach $2 trillion annually. Interest payments on the national debt alone are nearing $1 trillion per year, driven in part by emergency COVID-19 spending, tax reforms that cut revenue, and rising costs tied to aging-related health care. The U.S. national debt currently stands at $36 trillion.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, emphasized the need for a comprehensive solution. “We need a budget that tells the full story, and it should control spending, reduce borrowing, bring deficits down,” she said.
Key proposals in the budget include slashing the State Department and international programs by 84 percent, leaving them with just $9.6 billion. This includes drastic reductions to the U.S. Agency for International Development. The Department of Health and Human Services would be cut by $33.3 billion, and the Department of Education would see a $12 billion decrease. Both the Centers for Disease Control and Prevention and the National Institutes of Health face major funding reductions.
Conversely, the Department of Defense would receive an additional $113.3 billion, and the Department of Homeland Security would gain another $42.3 billion, subject to congressional approval of Trump’s broader legislative plan. However, this defense funding boost has not been universally embraced among Republicans.
Senator Mitch McConnell of Kentucky, the former GOP Senate Leader, labeled the defense spending hike a “gimmick.” He added, “America cannot expect our allies to heed calls for greater annual defense spending if we are unwilling to lead by example. Fortunately, Presidential budget requests are just that: requests. Congress will soon have an opportunity to ensure that American power – and the credibility of our commitments – are appropriately resourced.”
The power to determine federal spending lies with Congress, which must pass legislation to fund agencies and programs. That process often breaks down, leading to temporary funding measures to prevent government shutdowns. Lawmakers are currently working on Trump’s “big bill” that pairs tax reductions with massive spending cuts and expanded deportation efforts — unlike the budget blueprint, this package would carry legal authority.
Russell Vought is expected to appear before Congress in the coming weeks to defend the administration’s proposals. A veteran of Trump’s first term, Vought played a significant role in shaping the current vision. He also authored a detailed section in the Heritage Foundation’s Project 2025 outlining a major overhaul of the federal government.
Vought is separately preparing a $9 billion package aimed at defunding both the U.S. Agency for International Development and the Corporation for Public Broadcasting, which includes PBS and NPR. Late Thursday, Trump signed an executive order instructing the Corporation for Public Broadcasting and other agencies to halt funding for public media.
Vought has indicated that this $9 billion proposal would be only the first in a series of so-called “budget rescissions.” These measures are designed to test how willing lawmakers are to go on record supporting significant funding rollbacks.