WASHINGTON

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 proposes reorganizing USAID under the State Department and cutting its funding by $2.5 billion.

It also makes big changes to NASA, cutting its funding by nearly 25% to $18.8 billion, plans to stop using the Space Launch System rocket and Orion spacecraft, and to reduce work on the International Space Station.

The proposal eliminates funding for programs tied to climate change, diversity, equity and inclusion (DEI), and LGBTQ, describing it as “radical, leftist priorities.” It also reduces more than $3 billion from international disaster and refugee assistance, combining the funds into a new humanitarian account aligned with the president’s foreign policy aims.

A $2.5 billion cut to the Internal Revenue Service (IRS) has also been suggested, aiming to restore it as a neutral body.