NewsTrump proposes massive budget cuts for military boost

Trump proposes massive budget cuts for military boost

The Trump administration is proposing drastic cuts to federal spending while planning to significantly increase allocations for the military and homeland security. According to Reuters, this is part of a larger strategy in which Republicans aim to finance an ambitious tax reform.

163 billion dollars in cuts to the US budget. Donald Trump focuses on the military.
163 billion dollars in cuts to the US budget. Donald Trump focuses on the military.
Images source: © Getty Images | Anna Moneymaker

The Trump administration has put forward a proposal for cuts to the federal budget for next year, totaling $163 billion. The plan calls for a reduction of more than one-fifth in non-defense spending, excluding mandatory programs.

According to a statement from the White House Office of Management and Budget (OMB), the proposal anticipates a 13 percent increase in defense spending and a 65 percent increase in homeland security compared to the levels approved for 2025. Non-defense discretionary spending is expected to be cut by 23 percent, reaching its lowest level since 2017, the report states.

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 President’s Budget does all of that—said OMB Director Russ Vought.

Planning a tax reform

The budget project presented by the White House includes economic forecasts and detailed spending proposals for each federal agency for the upcoming fiscal year, which begins on October 1.

The final shape of the budget bill, however, is up to Congress—currently controlled by Republicans—and usually differs from the administration's proposal.

The budget was announced at a time when the Republican Party is trying to reach a compromise on cuts to finance the planned tax reform. The goal is to have it passed by July 4, Reuters reports.

At the same time, Republicans must contend with growing economic tensions, caused in part by U.S. tariff increases, which are destabilizing global trade.

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