Trump proposes $163 billion budget cut—what could it mean for you and your loved ones?
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Big changes could be on the horizon for millions of Americans—and not just in theory.
The Trump administration has rolled out a sweeping new budget proposal that would cut $163 billion in federal spending.
If passed, the plan would significantly reduce funding for everyday programs that many people rely on, including public education, affordable housing, and critical health research.
At the same time, it would increase government spending in areas like defense and border security.
Whether you count on these services yourself, know someone who does, or are simply trying to keep up with how national policies might affect your community, this proposal is prompting intense discussion across party lines.
With so much at stake, many Americans are watching closely to see how these potential changes could shape life in the coming years.
The proposed budget outlines deep cuts across numerous departments and agencies, including:
At the same time, the proposal increases homeland security funding by nearly 65% compared to 2025 enacted levels.
This includes:
According to Office of Management and Budget Director Russ Vought, the budget is intended to be a turning point.
He said it is “a historic budget—one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security.”
Vought, previously affiliated with the Heritage Foundation’s Project 2025 plan to scale back government, now serves as Trump’s budget director.
While Trump distanced himself from the Project 2025 campaign, Vought is playing a central role in shaping federal priorities.
The response has been mixed:
Congress ultimately controls the federal budget, and lawmakers are expected to make substantial changes before any final plan is passed.
If the proposal goes through as written, it could bring noticeable changes to programs many families and communities count on.
While Congress will likely revise the plan, here’s what the current proposal suggests:
The current proposal marks the beginning of the budget process.
Congress will review, debate, and likely revise the plan, with early signs of differing opinions—both across and within parties.
While the final outcome remains to be seen, Trump’s position within the GOP may help shape which parts of the proposal move forward.
Read next: Breaking: DOGE plans to eliminate 69 programs in latest budget cuts
Do you rely on government programs for housing, education, or healthcare? How do you feel about large-scale cuts to domestic spending? What would you prioritize in the federal budget? Share your thoughts in the comments—we want to hear from you!
The Trump administration has rolled out a sweeping new budget proposal that would cut $163 billion in federal spending.
If passed, the plan would significantly reduce funding for everyday programs that many people rely on, including public education, affordable housing, and critical health research.
At the same time, it would increase government spending in areas like defense and border security.
Whether you count on these services yourself, know someone who does, or are simply trying to keep up with how national policies might affect your community, this proposal is prompting intense discussion across party lines.
With so much at stake, many Americans are watching closely to see how these potential changes could shape life in the coming years.
President Donald Trump has proposed a $163 billion federal budget cut. Image Source: YouTube / Associated Press.
What’s in the proposal?
The proposed budget outlines deep cuts across numerous departments and agencies, including:
- A 23% reduction in non-defense discretionary spending, bringing it to the lowest level since 2017
- A 15% cut to the Department of Education
- Nearly half of the Department of Housing and Urban Development’s budget slashed
- Over 40% cuts to the National Institutes of Health (NIH) and Centers for Disease Control and Prevention (CDC)
- A $2.49 billion reduction in IRS funding
- Budget cuts targeting NASA’s moon program, as well as federal law enforcement agencies like the FBI and ATF
At the same time, the proposal increases homeland security funding by nearly 65% compared to 2025 enacted levels.
This includes:
- $500 million for deportation efforts
- $766 million for border security technology
- Funding to maintain 22,000 border patrol agents and hire more Customs and Border Protection officers
Also read: Trump leans toward Medicaid work mandates as Republicans eye $2 trillion in savings
What’s the goal?
According to Office of Management and Budget Director Russ Vought, the budget is intended to be a turning point.
He said it is “a historic budget—one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security.”
Vought, previously affiliated with the Heritage Foundation’s Project 2025 plan to scale back government, now serves as Trump’s budget director.
While Trump distanced himself from the Project 2025 campaign, Vought is playing a central role in shaping federal priorities.
Also read: Budget dilemma: Proposed cuts could hit Medicare and Medicaid, affect millions
How lawmakers are reacting
The response has been mixed:
- Democrats strongly criticized the domestic cuts. Senate Majority Leader Chuck Schumer called the proposal “an all-out assault on hardworking Americans,” and said “Donald Trump’s days of pretending to be a populist are over.”
- Republican Senator Susan Collins expressed concern about the proposal’s timing and key omissions. She said, “Based on my initial review, I have serious objections,” highlighting worries about cuts to heating programs for low-income households and what she sees as insufficient defense funding.
- Senator Roger Wicker, a Mississippi Republican and Senate Armed Services Committee chair, warned that keeping defense spending at Biden-era levels would effectively amount to a cut once inflation is factored in. He said, “That is a cut,” despite the proposal technically boosting discretionary defense spending by 13%.
Congress ultimately controls the federal budget, and lawmakers are expected to make substantial changes before any final plan is passed.
Also read: Is your health at risk? Learn how these alarming budget cuts could affect you!
How it could affect everyday Americans
If the proposal goes through as written, it could bring noticeable changes to programs many families and communities count on.
While Congress will likely revise the plan, here’s what the current proposal suggests:
- Education: A 15% cut to the Department of Education might mean fewer resources for public schools and student support programs.
- Healthcare and research: Funding for the NIH and CDC would be reduced by over 40%, which might slow progress in medical research and public health efforts.
- Housing: The housing department’s budget would be nearly cut in half, which might affect the availability of affordable housing—especially for low-income families and seniors.
- IRS operations: A $2.49 billion cut to the IRS might lead to fewer staff and slower processing, and some analysts warn it could even affect how much tax revenue is collected.
The current proposal marks the beginning of the budget process.
Congress will review, debate, and likely revise the plan, with early signs of differing opinions—both across and within parties.
While the final outcome remains to be seen, Trump’s position within the GOP may help shape which parts of the proposal move forward.
Read next: Breaking: DOGE plans to eliminate 69 programs in latest budget cuts
Do you rely on government programs for housing, education, or healthcare? How do you feel about large-scale cuts to domestic spending? What would you prioritize in the federal budget? Share your thoughts in the comments—we want to hear from you!
