Trump’s Budget Plan Includes 23% Domestic Spending Cuts, 13% Military Spending Increase

President Donald Trump is proposing significant cuts to domestic agencies and a substantial increase in military spending in his preliminary 2026 budget request, set to be released Friday, Bloomberg reports

The budget outline calls for $557 billion in non-defense spending, a $163 billion reduction from current levels, according to administration officials who spoke on condition of anonymity. National security funding would increase to $1.01 trillion, a 13% increase from the current $892.3 billion.

This initial budget proposal, often referred to as a “skinny budget” due to its lack of detail, serves as a first glimpse into the president’s vision for the federal government’s size and scope. While Congress rarely enacts such proposals in full, it traditionally sets the stage for the annual appropriations process, which has frequently been marked by partisan conflict and the threat of government shutdowns in recent years.

The record defense budget prioritizes the Golden Dome missile defense project, shipbuilding and nuclear modernization, and border security. It also includes a 3.8% military pay raise.

On the domestic front, the proposal envisions a 22.6% cut from projected spending in the 2025 fiscal year. This includes slashing environmental and renewable energy programs, as well as initiatives aimed at addressing racial disparities. The Environmental Protection Agency and the Department of Energy would face significant reductions. Trump is also requesting the cancellation of $15 billion in renewable energy programs funded by former President Joe Biden’s infrastructure law.

The budget targets foreign aid and diversity and inclusion programs for elimination or dramatic reductions. It proposes cutting $5.2 billion from the National Science Foundation and eliminating some grants at NOAA, the agency responsible for weather forecasting and monitoring oceanic and atmospheric conditions.

The proposal calls for the elimination or consolidation of federal block grants and envisions substantial cuts to the Education Department – which Trump ultimately seeks to eliminate – as well as the National Institutes of Health, and the Department of Housing and Urban Development.

Specific agencies slated for closure include the US Institute of Peace, the Minority Business Development Agency, and the Community Development Financial Institutions Fund. Details of the domestic spending cuts were initially reported by the Wall Street Journal.