President Donald Trump has proposed a dramatic $163 billion cut to the U.S. federal budget for fiscal year 2026, with significant reductions in domestic spending. The proposal, which is part of his “skinny budget,” suggests a 23% decrease in non-defense discretionary funding, impacting a range of domestic programs, including healthcare, education, and climate change initiatives.

The budget outlines cuts to major agencies, including the National Institutes of Health (NIH), the Centers for Disease Control and Prevention (CDC), and the Environmental Protection Agency (EPA), all of which are facing substantial reductions. Meanwhile, defense and homeland security are set to receive major funding increases. The Pentagon’s budget would rise by 13%, totaling over $1 trillion, with an additional $1.27 billion earmarked for border security and immigration enforcement.

The White House has justified these cuts by emphasizing the need to reduce government spending and focus on national security. Russ Vought, Director of the Office of Management and Budget (OMB) and a key proponent of the administration’s budget plans, argues that the reductions are necessary to streamline government operations and reduce federal waste.

However, the proposal has faced significant backlash. Democrats have criticized the cuts for disproportionately affecting working-class Americans while benefiting wealthier individuals and corporations. Additionally, some Republicans, including Senators Mitch McConnell and Susan Collins, have expressed concerns about the drastic reductions in domestic spending and the impact on essential services for low-income citizens.

As the budget moves to Congress for review, lawmakers will have the final say on whether the proposed cuts will be enacted, with significant negotiations expected before any final decisions are made.

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