Updated 9:31 a.m.
WASHINGTON (Reuters) -U.S. President Donald Trump’s administration proposed a $163 billion cut to federal spending next year, which would eliminate more than a fifth of the non-military spending excluding mandatory programs, it said in a statement.
The White House Office Management and Budget in a statement said the proposed budget would raise defense spending by 13% and homeland security spending by nearly 65% compared to 2025 enacted levels. Non-defense discretionary spending would be cut by 23% to the lowest level since 2017.
“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 Russ Vought, OMB director, in the statement.
The annual White House budget request includes economic forecasts as well as detailed proposals about how much money should be spent by every government agency for the year that starts on October 1.
However, it will be the responsibility of the Republican-controlled Congress to craft spending legislation, and what lawmakers ultimately adopt often differs from the White House request.
The release comes as Republicans in the U.S. Congress are working to bridge internal divisions over proposed cuts in federal spending to pay for a landmark tax-cut bill they hope to enact by July 4. They may also have to factor in growing stress in the nation’s economy arising from U.S. tariff hikes that are upending global trade.
(Reporting by Nathan Layne, Brendan O’Brien, Katharine Jackson; Editing by Scott Malone)
WASHINGTON (Reuters) -U.S. President Donald Trump plans to unveil his budget proposal for the 2026 fiscal year on Friday and send it to Congress, according to a White House official.
The annual White House budget request includes economic forecasts as well as detailed proposals about how much money should be spent by every government agency for the year that starts on October 1.
However, it is the responsibility of Congress to craft spending legislation, and what lawmakers ultimately adopt typically differs dramatically from the White House request.
The release comes as Republicans in the U.S. Congress are working to bridge internal divisions over proposed cuts in federal spending to pay for a landmark tax-cut bill they hope to enact by July 4. They may also have to factor in growing stress in the nation’s economy arising from U.S. tariff hikes that are upending global trade.
Trump, who describes the tax-cut measure “a big beautiful bill,” said this week that he would propose a military budget of over $1 trillion, adding that tariffs he has slapped on nearly every country will help boost revenues and offset his plans to cut taxes.
The proposed budget will also include over $160 billion worth of cuts in environmental, renewable energy, education and foreign-aid programs, the Wall Street Journal reported on Thursday, citing administration officials.
Trump campaigned during the 2024 presidential campaign on reducing the size of the federal government, and his administration – aided by billionaire Elon Musk – has shut down several agencies and slashed the federal workforce by tens of thousands of people. Some of the cuts remain tied up in court.
Trump won’t be in Washington when his budget plan comes out.
The Republican president capped a week-long celebration of his first 100 days in office with a speech to graduates at the University of Alabama on Thursday evening before flying to West Palm Beach for the weekend.
(Reporting by Steve Holland; Additional reporting by Trevor Hunnicutt, Andrea Shalal, Costas Pitas, Brendan O’Brien and Andy Sullivan; Editing by Stephen Coates and Edwina Gibbs)
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