PNN – US President Donald Trump has proposed a $163 billion spending cut in the federal budget for next year.
According to the report of Pakistan News Network, US President Donald Trump has proposed a $163 billion spending cut in the federal budget for next year, focusing on reducing domestic spending.
According to the report, the bill would cut spending on education, housing, and medical research for next year while increasing budgets for defense and border security.
The administration added that the proposed budget bill would increase the budget for Homeland Security departments by about 65 percent from the amount allocated for 2025, while Trump continues to implement a massive deportation operation.
The White House Office of Management and Budget also said in a statement that non-defense discretionary spending, which excludes broad social security and welfare programs and increases in interest rates on the national debt, will fall 23 percent, reaching its lowest level since 2017.
Under the bill, more than $2 billion would be cut from the IRS budget, and the budgets of the National Institutes of Health and the Centers for Disease Control and Prevention would be cut by more than 40 percent.
The bill also proposes a $50 billion cut to the State Department’s budget.
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Other provisions of the proposal include a call for drastic cuts to the NASA space program and other federal law enforcement agencies, including the FBI. The budget for the Department of Housing and Urban Development would also be cut by half.
The White House believes congressional Republicans will increase defense spending as part of the process to pass Trump’s tax cut budget, officials said.
This comes as the New York Times reported last week that Donald Trump’s administration is poised to cut billions of dollars in funding for programs related to child care, health research, education and housing in its proposed 2026 budget bill.
The report states that the plan will also affect social development programs and housing subsidies.
Earlier this year, the US Congress passed a budget bill for fiscal year 2025 that provided few details about billions of dollars in spending cuts and an expansion of Trump’s proposed tax cuts.
This is while data from the US Treasury Department shows that the country’s budget deficit in the first half of fiscal year 2025 has reached more than $1.3 trillion, the second largest six-month deficit in the country’s history.
According to a US Treasury official, the country’s increased spending includes increases in Social Security payments, medical care costs, the cost of aid payments to the Federal Emergency Management Agency and Department of Defense spending.
A budget deficit occurs when a government’s spending exceeds its revenue. So the Trump administration has launched a plan to cut spending through Elon Musk’s “Department of Government Productivity.”
Earlier, the US House of Representatives approved the country’s budget structure, which includes $4.5 trillion in tax cuts and at least $1.5 trillion in cuts to federal programs and services.
The government’s Productivity Department has presented plans to cut a large portion of the 2.4 million civilian workforces, entire agencies including the Department of Education and other government services.