Trump’s 2026 Budget to Slash $160B in Federal Programs, Boost Defense and Border Spending

President Donald Trump is set to unveil a fiscal 2026 budget proposal that would cut over $160 billion from nondefense discretionary spending, according to a Wall Street Journal report citing administration officials. The plan, expected Friday, would reduce such spending to $557 billion—a 22.6% drop from fiscal 2025 projections.

Key targets include environmental initiatives, renewable energy funding, education programs, and foreign aid. The proposal is part of a broader cost-cutting initiative led by the newly created Department of Government Efficiency (DOGE), headed by Elon Musk. DOGE aims to save $150 billion in the next year and $1 trillion over time.

Significant proposed cuts include eliminating “environmental justice” programs at the Environmental Protection Agency, closing the U.S. Agency for International Development (USAID), and ending grants for preschool development and minority-owned businesses. Trump’s budget would also cancel $15 billion in renewable energy funding from the infrastructure law enacted under President Biden.

Diversity, equity, and inclusion (DEI) initiatives are also in the crosshairs, with proposed eliminations of various preschool and teacher training programs labeled by the administration as promoting “woke” agendas.

In contrast, the budget seeks increased funding for border security, defense, law enforcement, and veterans' services. Officials argue the plan reduces "wasteful" federal spending while encouraging states to take on more responsibility.

Despite Republican control of Congress, the sweeping cuts are expected to face fierce opposition from Democrats and some moderate Republicans, likely triggering extended negotiations over national spending priorities. The proposed budget underscores Trump's policy shift toward fiscal austerity in domestic programs while emphasizing national security and immigration enforcement.