By Iclal Turan
WASHINGTON (AA) - US President Donald Trump on Friday unveiled his administration’s proposed budget for fiscal year 2026, calling for a $163 billion cut to nondefense federal spending while increasing defense and homeland security funding.
In a letter to Senate Appropriations Committee Chair Susan Collins, Office of Management and Budget (OMB) director Russell Vought said that the proposal includes a 22.6% reduction—equal to $163 billion—in nondefense discretionary spending.
The plan proposes a nearly 65% hike in funding for the Department of Homeland Security, allocating $175 billion to support Trump’s mass deportation agenda and efforts to secure the border.
The Department of Defense would receive $1.01 trillion—an increase of 13%—to rebuild the military, deter China in the Indo-Pacific, and "revitalize" the US defense industrial base, according to the statement.
The proposal includes funding for next-generation missile defense, new fighter aircraft, and a 3.8% pay raise for service members.
An OMB official told reporters that this is the "lowest non-defense spending since 2017."
The budget also proposes reorganizing USAID under the State Department and cutting its funding by $2.5 billion.