President Donald Trump on Friday released his fiscal 2026 budget blueprint, proposing a $163 billion cut to federal non-defense discretionary spending — slashing nearly a quarter of government spending outside of the military, Social Security, Medicare, and Medicaid. The “skinny budget,” issued by the Office of Management and Budget, outlines a 13% boost to defense spending and a massive 65% increase for homeland security.
OMB Director Russ Vought called it “a historic Budget” designed to “end the funding of our decline.” The plan reflects Trump’s second-term priorities: shrinking the federal government, cracking down on immigration, and strengthening national defense.
While nonbinding, the proposal signals Trump's fiscal direction as Congress prepares to take up appropriations. It also comes as Republicans grapple with internal divisions over spending cuts to offset Trump’s tax overhaul, with Medicaid emerging as a central point of contention.
