Trump proposes $163 billion budget cut, impacting domestic programs

In a bold move, U.S. President Donald Trump's administration has unveiled a proposal for a staggering $163 billion reduction in the federal budget, with significant implications for domestic programs. This budget plan seeks to drastically cut spending on education, housing, and medical research in the upcoming fiscal year while simultaneously increasing funding for defense and border security.

The administration's proposal aims to elevate homeland security spending by nearly 65% from the levels enacted in 2025, reflecting Trump's commitment to tightening immigration controls. Non-defense discretionary spending, which excludes essential programs like Social Security and Medicare, would see a 23% reduction, bringing it down to its lowest point since 2017, according to a statement from the White House Office of Management and Budget.

The budget cuts would result in more than $2 billion being slashed from the Internal Revenue Service and would significantly reduce the budgets of key health agencies, including the National Institutes of Health and the Centers for Disease Control and Prevention, by over 40%. Critics, including members of Congress from both parties, have condemned these cuts as excessive, arguing they jeopardize services crucial for working Americans.

"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 OMB Director Russ Vought. Notably, Vought has been instrumental in shaping budgetary policies aimed at reducing the federal government's reach.

With the federal debt now exceeding $36 trillion, concerns are mounting among fiscal conservatives regarding the long-term impacts of Trump's proposed tax cuts, which some experts fear could exacerbate the already burgeoning deficit. The budget serves as an outline of the administration's priorities, providing Republican lawmakers in Congress with a framework for drafting spending bills.

Senator Susan Collins, a key Republican appropriator, has expressed reservations about the timing and details of the request, indicating that defense spending may be insufficient and raising alarms about cuts to vital programs for low-income Americans. "Ultimately, it is Congress that holds the power of the purse," Collins remarked.

The budget proposal also includes a $50 billion cut at the State Department as it integrates the U.S. Agency for International Development, alongside a $2.49 billion reduction to the IRS aimed at curtailing perceived overreach in enforcement. Nonpartisan analysts caution that these IRS cuts could hinder tax collection efforts, potentially worsening the deficit.

Furthermore, the proposed budget would impose substantial reductions on NASA’s lunar program and law enforcement agencies, including the FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives. Trump's administration continues to pursue its agenda of diminishing the Department of Education, proposing a 15% budget cut for this essential agency.

In response to the proposed cuts, Senate Democrat Chuck Schumer criticized Trump’s approach, declaring that the days of pretending to be a populist are over. He characterized the budget as an assault on hardworking Americans.

Despite the proposed 13% increase in discretionary defense spending, some Republican leaders caution that inflation-adjusted figures suggest a decrease compared to levels set by Trump's Democratic predecessor, Joe Biden. The administration anticipates that Congress will enhance defense spending during the passage of Trump's tax-cut bill, which Republicans aim to finalize by July 4.

As the administration grapples with economic pressures due to tariff policies that disrupt global trade, the proposed budget includes an additional $500 million for border security and funding to support mass deportations. This budget proposal highlights the considerable influence Trump wields over Republican lawmakers, suggesting that he may achieve much of what he seeks.

The administration continues to work on a separate package to codify previous budget cuts, navigating a complex legislative landscape as it seeks to enforce its priorities.