Trump’s 2026 Budget Proposes Deep Cuts, Increased Defense Spending
The White House has unveiled President Donald Trump’s 2026 budget proposal, which outlines a dramatic shift in domestic spending priorities. The plan includes a $US163 billion ($252.5 billion) reduction in discretionary federal spending, targeting several government departments while boosting defense and security funding.
Released by the Office of Management and Budget on Friday, the proposal — a preliminary “skinny budget” — focuses on discretionary spending, which currently totals $US1.83 trillion ($2.83 trillion) annually. Trump’s team aims to cut this to $US1.69 trillion, a nearly 23% reduction.
A key component of the plan includes $US375 billion in new funding for the Departments of Defense and Homeland Security, aligning with Trump’s broader vision of tax cuts and spending reductions.
Major Departmental Cuts, Defense Spending Surges
Under the proposed budget, the State Department and associated international programs would see an 84% reduction, receiving just $US9.6 billion in new funding. Health and Human Services would be cut by $US33.3 billion, Housing and Urban Development funding would be nearly halved, and the Education Department would lose $US12 billion.
Non-defense discretionary spending — excluding Social Security, Medicare, and interest payments — would drop to its lowest level since 2017.
The IRS would lose over $US2 billion, and major health agencies like the CDC and NIH face sharp funding cuts. Meanwhile, defense spending would increase by $US113.3 billion, and Homeland Security would receive a 65% boost of $US42.3 billion.
The administration is seeking a $US892.6 billion defense budget for 2026, focusing on military revitalization and national security. However, critics like Senator Mitch McConnell have dismissed the increase as a “gimmick,” emphasizing that Congress has the final say on funding.
NASA’s Moon Missions Cut in Favor of Mars
NASA’s 2026 budget would be cut by $US6 billion, reducing the agency’s budget by 24%. The proposal eliminates funding for the Artemis moon program’s Space Launch System and Orion capsule after their 2027 mission. These programs, supported by long-standing contractors like Boeing and Lockheed Martin, have been criticized for their high costs.
Despite sweeping cuts across NASA, the budget includes a $US1 billion increase for Mars exploration efforts, reflecting alignment with SpaceX CEO Elon Musk’s goal of sending humans to Mars. The plan could significantly reshape NASA’s future, impacting international collaborations with agencies in Europe, Canada, and Japan.
Critics have called the proposal — including a 47% cut to NASA’s science budget — a major setback for U.S. space leadership.
Intelligence Community Faces Downsizing
The budget also outlines major staffing reductions in U.S. intelligence agencies. According to The Washington Post, the CIA could cut 1,200 jobs, with thousands more affected across other intelligence bodies. These cuts come amid renewed public efforts by U.S. agencies to counter China’s rising cyber and military threat.
Changes to Transportation and Aviation Funding
The Transportation Security Administration (TSA) would lose $US247 million, while rail and air safety initiatives would gain support. The Federal Aviation Administration (FAA) would receive $US360 million to hire more air traffic controllers and modernize its systems, addressing ongoing staffing shortages. An additional $US400 million would be allocated to rail safety and infrastructure.
However, rural air services would be hit hard, with a proposed $US308 million cut to the Essential Air Service program.
The budget criticizes TSA’s performance, citing failed audits and invasive screening procedures.
Support for Global Development Despite Aid Cuts
Surprisingly, Trump’s proposal includes $US3.2 billion in contributions to the World Bank’s International Development Association (IDA), to be paid over three years. This funding supports low-interest loans to the world’s poorest countries and helps move the IDA closer to its $US100 billion target.
At the same time, overall foreign aid would be reduced by $US49 billion, according to senior officials from the Office of Management and Budget.
