Donald Trump’s budget: US defence boosted, education cuts proposed | Key takeaways
May 03, 2025 08:07 AM IST
Donald Trump’s first budget after returning to office focuses on increasing funding for border security and reducing parts of the federal bureaucracy.
US President Donald Trump on Friday proposed a $163 billion cut to the federal budget for the next fiscal year, reducing spending on education, housing, and medical research, and increasing allocations for defence and border security.
US President Donald Trump gestures after delivering commencement remarks at the University of Alabama in Tuscaloosa, Alabama, on May 1, 2025. (AFP)
Homeland security spending would rise by nearly 65 per cent from 2025 levels, as the administration targets illegal immigration.
Separately, non-defence discretionary spending, which excludes social security, medicare, and interest payments, would be cut by 23 per cent, reaching its lowest level since 2017, according to the White House Office of Management and Budget.
As his first budget since returning to office, Trump’s plan aims to fulfil pledges to increase funding for border security while scaling back parts of the federal bureaucracy, Reuters reported.
Meanwhile, Congressional Democrats pushed back against the domestic spending cuts, calling them excessive, while some Republicans urged increased funding for defence and other sectors.
The proposal also includes a cut of over $2 billion to the Internal Revenue Service and reduces funding for the National Institutes of Health and the Centers for Disease Control and Prevention by more than 40 per cent.
Here are the key highlights of Trump’s FY26 budget plan:
The proposal includes a 15.3 per cent cut to the US Department of Education’s budget as part of Trump’s plan to reduce the size of the federal government.Trump’s budget targets Federal Work-Study, which provides part-time jobs to students, proposing a $980 million cut from the program’s $1.2 billion funding in fiscal year 2024.Trump administration has proposed a $892.6 billion national defence budget for fiscal year 2026, with a $113.3 billion increase for the Defence Department and a $42.3 billion, nearly 65 per cent boost for Homeland Security. The proposal aims to focus on rebuilding the US military and enhancing national security.The proposal aims to reduce NASA’s moon program by cutting $6 billion from the agency’s 2026 budget, while increasing support for the Mars-focused agenda championed by SpaceX CEO Elon Musk.The budget proposal also includes personnel cuts at the Central Intelligence Agency (CIA) and other major US intelligence agencies, with the CIA planning to eliminate 1,200 positions, along with additional cuts across the broader intelligence community, according to the Washington Post.The budget proposal includes an additional $360 million for the Federal Aviation Administration to fund air traffic controller hiring, salary increases, and upgrades to outdated telecommunications systems, as well as $400 million for new rail safety and infrastructure initiatives.Trump’s budget proposal seeks $3.2 billion in contributions to the World Bank’s International Development Association (IDA) over three years for loans to poor countries, while also cutting foreign aid by $49 billion.The budget proposal seeks $3.2 billion in contributions to the World Bank’s International Development Association (IDA) over three years for loans to poor countries, while also cutting foreign aid by $49 billion.The Interior Department would face a 30.5 per cent reduction, including a $198 million cut to Bureau of Land Management conservation programs and a $1 billion reduction in tribal and Bureau of Indian Affairs programs and grants.The Department of Energy’s budget would be cut by $4.7 billion, mainly targeting renewable energy and climate change programs, with $15 billion in clean energy funding from the 2021 infrastructure bill also reduced.
With agencies inputs
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