Trump suggests reducing the US federal budget by $163 billion.

The Trump administration has unveiled a budget proposal for the upcoming fiscal year, advocating for a substantial $163 billion reduction in federal spending. This proposal targets non-military discretionary spending, excluding mandatory programs, with a proposed cut of 23%, bringing it to its lowest level since 2017.

Simultaneously, the budget outlines significant increases in defense and homeland security spending, marking a 13% and nearly 65% rise, respectively, compared to 2025 levels. The White House Office of Management and Budget (OMB) Director, Russ Vought, defended the proposal, emphasizing the need to prioritize national security and reverse perceived decline.

While the White House budget request provides a comprehensive roadmap for government agency spending, the final responsibility for crafting spending legislation rests with the Republican-controlled Congress. Disagreements within the party regarding funding for tax cuts, coupled with growing economic concerns stemming from US tariff policies, may complicate the legislative process and potentially lead to a budget that diverges significantly from the initial White House proposal.