Donald Trump unveiled his budget proposal blueprint – or “skinny budget” – for the 2026 fiscal year, which would include a $163bn cut to federal spending, eliminating more than a fifth of the non-military spending excluding mandatory programs, according to a release by the office of management and budget (OMB).

The proposed budget would raise defense spending by 13% and homeland security spending by nearly 65% compared with 2025 enacted levels, according to the office. Non-defense spending would be reduced by roughly 23%, the lowest level since 2017. It is thus very much in line with the second Trump administration’s efforts to drastically shrink the size of the federal government through staffing cuts and office closures, and its aggressive anti-immigration agenda.

Russ Vought, OMB director, said in the statement:

At this critical moment, we need a historic Budget—one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security.

The “skinny budget” is a summary of budget proposals that presidents often release in their first term, followed later on by the traditional full budget books that include all spending and revenue projections. It isn’t binding and it is down to Congress to craft legislation, but per Politico “it gives Hill leaders a loose roadmap of Trump’s budget request as they gear up to move on the fiscal 2026 appropriations process”.

Per NPR: “While it is Congress’ job to appropriate money, the president is required by law to send lawmakers a budget proposal each year. The proposal is not binding – it is more of a list of the president’s policy priorities, with price tags attached.

“Congress does not have to abide by what a president wants. But this particular budget may be more meaningful than usual, precisely because this Congress has not been inclined to ignore President Trump’s wishes.”

NPR also notes that the cuts proposed this morning are for spending that Congress authorizes each year – which does not include spending on safety nets like Medicare, Medicaid and Social Security.

But the blueprint does come at a time when congressional Republicans are fighting to bridge internal divisions over proposed cuts in federal spending in order to pay for Trump’s landmark tax-cut bill. As Politico notes: “The fate of the megabill, at this point, appears to hinge almost entirely on the Medicaid question: Are deep cuts to Medicaid something to be avoided? Or are they the whole point of pursuing the legislation? That clash is playing out in both public and private as lawmakers race to stamp Trump’s ‘big, beautiful bill’ before Memorial Day.”