The White House is set to unveil a partial budget proposal on Friday that calls for $163 billion in cuts to federal spending in the upcoming fiscal year, according to a source familiar with the matter. The proposal, often referred to as a “skinny budget,” aims to reduce a wide range of federal expenditures, impacting environmental, education, foreign aid, and healthcare programs. Several of these programs have previously been targeted for cuts under the Trump administration or by Elon Musk’s U.S. DOGE Service.
Among the agencies that could see reductions are the Environmental Protection Agency (EPA), the Department of Energy, and the Department of Housing and Urban Development (HUD). The Wall Street Journal first reported the budget request, and a source, speaking on the condition of anonymity, confirmed details about the proposed cuts, which are yet to be made public.
The White House is expected to release a more comprehensive budget later in the month, but this initial proposal is significant as it provides an early glimpse into the administration’s priorities for the 2026 fiscal year, which will begin on October 1. If enacted, these cuts would be taken from the “nondefense discretionary” portion of the federal budget, which excludes spending on the Pentagon, Social Security, Medicare, and Medicaid — the largest areas of government spending.
The proposed cuts represent a roughly 23% reduction in nondefense discretionary spending from current levels, the source said. In addition to the wide-reaching cuts across several federal programs, the budget proposal calls for a $5 billion reduction in funding for the National Science Foundation and seeks to defund the National Endowment for Democracy. Furthermore, it proposes the elimination of the U.S. Institute of Peace.
While Presidential budget proposals are not binding, they provide insight into the administration’s priorities. With Republican majorities in both the House and Senate, President Trump may find substantial support for his proposal, possibly allowing for many of the requested cuts to be written into law.
The proposed budget has drawn considerable attention this year, particularly given the Trump administration’s attempts to push the limits of federal spending laws. White House Office of Management and Budget Director Russell Vought has argued that the administration should have broader authority to cancel or redirect federal spending without the need for congressional approval. Additionally, Musk’s U.S. DOGE Service claims to have cut over $100 billion in federal spending this fiscal year, though courts have ruled that certain mandated funds must be spent as per existing laws.
The upcoming budget proposal is expected to face challenges in Congress, as Republicans have so far resisted enshrining drastic cuts, such as those proposed by Musk’s DOGE group, including the elimination of the U.S. Agency for International Development. This shutdown of the agency occurred in early February, without congressional consent.
