Trump's Proposed FY26 Budget Highlights Key Reductions
President Trump unveiled a $1.7 trillion fiscal 2026 discretionary funding budget, which, according to the proposal, is set to bring significant changes for numerous government agencies.
The budget proposes cuts to all but the departments of Homeland Security, Transportation, Veterans Affairs, and the Social Security Administration. Nearly every other agency in government would see dramatic reductions.
The Education Department, which has already seen its staffing reduced by 50% under Trump, is proposed to see further dramatic reductions as it "winds down its operations and reduces its workforce." The National Science Foundation's budget is slated to be cut by more than half, and the National Park Service's operations budget is slated to be slashed by 31%.
The Internal Revenue Service's budget is proposed to be cut by $2.5 billion, and the Veterans Affairs Department is looking to cut around 80,000 roles. The budget also suggests the administration would cut the 19,000 roles the IRS added in recent years.
The budget proposes cuts of 22% to non-defense agencies. The departments of Interior, Labor, Housing and Urban Development, State, and other international programs included in its budget, as well as the Small Business Administration, Environmental Protection Agency, and National Science Foundation would all see reductions of at least 30%.
In an effort to streamline operations, the budget proposes to "streamline" NASA's workforce, and the wildland firefighting operations are proposed to be consolidated into one entity within the Interior Department, aiming for better efficiency and coordination. Other parts of the U.S. Forest Service are looking at significant cuts.
About $325 billion for select agencies in the budget proposal is expected to come from the tax cut and spending package that congressional Republicans are hoping to pass this year through the reconciliation process. More than 10% of the Defense Department's proposed increase comes from the reconciliation bill, with the Defense Department's funding proposed to increase by 13%.
The budget proposes that the administration would have the option to unilaterally opt not to spend money lawmakers have appropriated, despite potential lawsuits and court orders. Republican lawmakers are reportedly more amenable to the cuts this time around.
However, the key government priorities affected in President Trump's 2026 budget would typically involve economic policy and job security, as well as migration policy; however, specific reductions planned by Trump's administration for that year are not detailed in the search results provided. Most references relate to German budgetary issues or general economic concerns rather than U.S. specifics. Thus, the exact government priorities and planned reductions in Trump's 2026 budget cannot be confirmed from the search results.
The administration plans to begin laying off employees at the Interior Department in the coming weeks. The exact number of layoffs and their impact on government operations remain to be seen.
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