Although the president’s budget is only a recommendation to Congress, early signals indicate Trump aims to formalise a government restructuring largely overseen by tech billionaire Elon Musk. That ongoing process has already frozen billions in aid, shuttered federal offices, and prompted court battles over dismissed staff.
Many of the proposed changes align with the views of Trump’s budget director, Russell T Vought, a leading figure in the right-wing policy group Project 2025. Vought has promoted the idea that a president can cancel congressional spending deemed “woke and weaponized.” Trump is expected to pair the 2026 budget plan with a rescissions package slashing over $9 billion from this year’s already-approved spending, including funding for PBS and NPR.
Despite Trump’s repeated claims of supporting affordable housing, the budget would slash $22 billion by replacing rental assistance with time-limited state grants. Funding for Native housing block grants and the Home Investment Partnerships Program would also be eliminated. The administration argues these initiatives are duplicative and proposes undefined “opportunity zones” instead.
The Department of Health and Human Services faces a proposed $40 billion cut. The National Institutes of Health would lose $8.8 billion, while the CDC’s budget would be nearly halved. Internal language reviewed by The New York Times calls out what it describes as “wasteful spending” and “dangerous ideologies.” A note on drug treatment funding refers to it dismissively as the “Biden crack pipe.”
In contrast to Trump's “law and order” rhetoric, the FBI, DEA, and ATF would collectively see nearly $2 billion in cuts. The administration argues these agencies have targeted gun owners and overreached their mandates. International aid also faces severe reductions, with $16 billion in proposed cuts to disaster and humanitarian assistance across Europe, Eurasia, and Central Asia. “To ensure every tax dollar spent puts America First, all foreign assistance is paused,” the draft states.
Trump’s allies in Congress are expected to use the proposed cuts to fund a costly expansion of his 2017 tax law. While Trump has flirted with raising taxes on the rich, he told Time magazine, “it would be politically untenable.”
The proposed budget would also reduce IRS funding by $2.5 billion, a move critics say will increase the federal deficit by limiting the agency’s ability to enforce tax laws.
While OMB spokesperson Rachel Cauley said “no final funding decisions have been made,” the early draft indicates an aggressive effort to consolidate federal anti-poverty programs into smaller, state-run grants—potentially reducing benefits for millions of low-income Americans.
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