WASHINGTON—President Donald Trump unveiled on Friday a budget blueprint that calls for slashing federal spending on key nondefense programs by $163 billion, targeting renewable energy, education, and foreign aid.
The plan calls for a 23 percent reduction in nondefense discretionary spending from fiscal year 2025 levels, bringing the total down to $557 billion. The proposal does not affect defense, Medicare, Medicaid, or Social Security but would significantly reduce funding to agencies such as the Environmental Protection Agency, the Energy Department, and the Department of Housing and Urban Development.
The White House’s “skinny budget” outlines proposed spending for fiscal year 2026, which begins on Oct. 1. While largely symbolic, it offers a clear view of the president’s political and fiscal priorities.
The blueprint previews the administration’s fiscal year 2026 plan, focusing on discretionary spending and portions of mandatory spending tied to reconciliation, with the full budget to follow later, according to the Office of Management and Budget (OMB).
The budget has the lowest amount of non-defense spending since 2017, and the lowest since 2000 when adjusted for inflation, a senior OMB official said during a conference call.
“This is the lowest non-defense spending level since 2017,” the Office of Management and Budget (OMB) said.
Trump’s fiscal year 2026 budget, sent to Congress by the OMB, significantly increases funding for defense and border security. It also prioritizes dismantling what it calls a “weaponized” federal bureaucracy and eliminating funding for diversity, equity, and inclusion (DEI); critical race theory programs; the “Green New Deal”; and other progressive initiatives.
“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,” Russ Vought, OMB director, said in a statement. “The President’s Budget does all of that.”
Nondefense discretionary spending funds an array of areas, including education, transportation, income security, veterans’ health care, and homeland security.
The Department of Homeland Security would see a roughly 65 percent boost in funding, while defense spending would rise by 13 percent under the president’s plan. But the overall discretionary budget is reduced from $1.83 trillion to $1.7 trillion due to significant cuts in other areas, the official said.
The president plans to cut spending by an average of 35 percent across many federal agencies, though key areas such as transportation, homeland security, and veterans affairs will be exempt.
The official said that OMB directly worked with the Department of Government Efficiency (DOGE), led by billionaire Elon Musk, to identify what he called “woke” and wasteful spending.
One of the largest savings comes from cuts to foreign aid by $49 billion, as the USAID is folded into the State Department.
“We are not going to be funding Sesame Street in Iraq. We’re not going to be funding LGBT activism in Africa,” the official said.
The plan proposes to eliminate programs such as the Cybersecurity and Infrastructure Security Agency’s disinformation offices, accusing it of targeting and censoring Americans. It also proposes to eliminate the Fair Housing Initiatives Program to end the “war on suburbs,” saving taxpayers $60 million. It also defunds the “environmental justice” initiatives at the Environmental Protection Agency and cancels $15 billion in Green New Deal funding from the infrastructure law signed by President Joe Biden.
Other priorities include eliminating a $315 million preschool development grant program that the administration says promotes “diversity, equity, and inclusion” policies, and cutting $77 million in funding it claims is used to indoctrinate new teachers.
