Washington, D.C. - On May 2, the administration of U.S. President Donald Trump announced a controversial proposal to cut the federal budget by a staggering $163 billion. This proposed budget aims to significantly reduce spending in critical areas such as education and housing for the upcoming fiscal year, while simultaneously increasing expenditures on defense and border security.
According to the White House Office of Management and Budget (OMB), the proposed budget seeks to increase homeland security spending by nearly 65% compared to the enacted levels of 2025. This budget plan illustrates a shift in priorities, where non-defense discretionary spending—excluding large programs like Social Security and Medicare—would experience a reduction of 23%, marking the lowest level since 2017.
The proposed budget also includes a significant cut of over $2 billion from the Internal Revenue Service (IRS), a decision that has raised eyebrows among fiscal experts. Trump's first budget since returning to office aligns with his promises to enhance spending on border security while streamlining the federal bureaucracy. OMB Director Russ Vought emphasized the need for a historic budget that prioritizes the American people and strengthens military and homeland security funding.
With the federal government grappling with a mounting $36 trillion debt, concerns arise regarding Trump's proposal to extend the 2017 tax cuts, which could exacerbate the nation’s financial challenges. This budget, often referred to as the skinny budget, serves as a preliminary outline of the administration's priorities and provides a framework for Republican appropriators in Congress to start drafting spending bills.
The budget proposal has drawn sharp criticism from Congressional Democrats, who argue that the cuts to domestic spending are excessively harsh. Some Republican lawmakers also express concerns, advocating for increased defense funding and additional support for vital programs. Senator Susan Collins of Maine, a leading appropriator, voiced her objections, highlighting that the request arrived late and key details remain unresolved. She specifically raised concerns about defense spending and cuts that could affect low-income Americans.
The proposed budget outlines a significant $50 billion reduction for the State Department, which would also see the absorption of the U.S. Agency for International Development. Furthermore, the budget proposes a $2.49 billion cut to the IRS, a move that a White House official claims is intended to eliminate the perceived misuse of IRS enforcement by former President Joe Biden. However, nonpartisan analysts warn that cuts to the IRS could hinder tax collection efforts and contribute to the national deficit.
Additionally, the budget proposal includes sharp reductions in funding for NASA's moon program and aims to fulfill Trump's commitment to significantly reduce the budget of the Department of Education. While funding for programs assisting low-income families will be preserved, the overall budget for education could be slashed by approximately 15%. The Department of Housing and Urban Development is also facing severe cuts, which could nearly halve its funding.
Despite the proposed budget's claim to increase discretionary defense spending by 13%, Senator Roger Wicker, chairman of the Senate Armed Services Committee, argued that this increase does not account for inflation and effectively translates to a real-term cut. The White House remains optimistic that Congressional Republicans will bolster defense spending in the final budget.
The annual budget request from the White House includes economic forecasts and detailed spending proposals for each federal agency for the fiscal year beginning on October 1. The Congressional Budget Office estimates that outlays for fiscal 2024 will amount to $6.8 trillion. Historically, lawmakers have made significant adjustments to the White House budget request, but Trump's influence over Republican lawmakers may allow him to secure much of what he seeks.
In addition to the proposed cuts, the budget calls for an additional $500 million in discretionary spending to enhance border security and support Trump's initiatives aimed at mass deportations. This includes $766 million for procuring border security technology and maintaining a workforce of 22,000 border patrol agents while hiring additional officers for Customs and Border Protection.
As the Trump administration continues to refine its budgetary proposals, a separate rescission package is in the works to formalize cuts already implemented by the Department of Government Efficiency, responding to demands from Republican senators for compliance with legal stipulations regarding previously approved funding.
